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HD 3829

An Act relative to structured settlement payment protections

194th Legislature (2025-2026) Introduced by John Mahoney

Massachusetts bill requiring court approval, independent legal counsel, and full disclosure before structured settlement recipients can sell future payment rights to factoring companies.

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Bill Summary · HD 3829

Legislative bill overview

HD 3829 establishes protections for recipients of structured settlement payments in Massachusetts by regulating the sale or transfer of future payment rights. The bill sets requirements for disclosure, independent legal review, and court approval before a structured settlement recipient can sell their payments to third parties. This addresses a market where factoring companies purchase future settlement payments at significant discounts.

Why is this important

Structured settlement recipients—typically injury or wrongful death claimants—sometimes face financial pressure to sell their future payments to factoring companies at steep discounts (often 40-60% of face value). Without protections, vulnerable recipients may make irreversible financial decisions without understanding long-term consequences. Clear safeguards help ensure informed consent and prevent predatory practices.

Potential points of contention

  • Paternalism vs. autonomy: Critics may argue that adults should have freedom to make their own financial choices without court intervention, even if those choices appear unwise
  • Market impact: Strict approval requirements could reduce the factoring market, limiting an option for recipients in genuine financial emergencies who need immediate cash
  • Implementation burden: Courts would bear additional caseload reviewing settlement transfers, raising questions about efficiency and whether approval becomes merely procedural

Compiled from official sources — confirm details with the bill’s official record.

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