Yes.  Factoring companies, which also buy lottery winnings, casino jackpots and other annuity-based payouts, use television and print advertising to reach individuals with structured settlements, offering to buy the settlement annuities at deeply discounted rates and paying the individuals a lump sum.

Settlement buyouts require court approval. If the buyout is in the “best interest” of the injured party, the court approves the sale. California SB510, signed into law in 2009, provides the courts with explicit guidelines for determining whether a buyout is appropriate. Some of these guidelines include a review of the injured party’s current and future financial needs, whether the party has received independent legal and financial advice regarding the buyout, and whether the “discount rate” proposed by the factoring company is in keeping with current market rates.