{"id":793,"date":"2020-06-16T12:06:32","date_gmt":"2020-06-16T12:06:32","guid":{"rendered":"https:\/\/nclnet.org\/?page_id=793"},"modified":"2022-10-05T20:14:00","modified_gmt":"2022-10-05T20:14:00","slug":"consumer-education","status":"publish","type":"page","link":"https:\/\/nclnet.org\/where-we-stand\/consumer-education\/","title":{"rendered":"Consumer Education"},"content":{"rendered":"\n<style type=\"text\/css\" id=\"style-css-av-k941ur2y-8c4c8685fdf13f39884a200f85095e19\">\n.avia-section.av-k941ur2y-8c4c8685fdf13f39884a200f85095e19{\nbackground-repeat:no-repeat;\nbackground-image:url(https:\/\/nclnet.org\/wp-content\/uploads\/2020\/04\/Banner-1.png);\nbackground-position:top center;\nbackground-attachment:scroll;\n}\n.avia-section.av-k941ur2y-8c4c8685fdf13f39884a200f85095e19 .av-section-color-overlay{\nopacity:0.5;\nbackground-color:#000000;\n}\n<\/style>\n<div id='av_section_1'  class='avia-section av-k941ur2y-8c4c8685fdf13f39884a200f85095e19 main_color avia-section-default avia-no-border-styling  avia-builder-el-0  el_before_av_one_full  avia-builder-el-first  avia-full-stretch avia-bg-style-scroll av-section-color-overlay-active  av-minimum-height av-minimum-height-50  container_wrap sidebar_right'  data-section-bg-repeat='stretch' data-av_minimum_height_pc='50'><div class='av-section-color-overlay-wrap'><div class=\"av-section-color-overlay\"><\/div><div class='container av-section-cont-open' ><main  role=\"main\" itemprop=\"mainContentOfPage\"  class='template-page content  av-content-small alpha units'><div class='post-entry post-entry-type-page post-entry-793'><div class='entry-content-wrapper clearfix'>\n\n<style type=\"text\/css\" id=\"style-css-av-kbhx7ivj-54d1b4cc27493fa15a059a5257f32ab2\">\n#top .av-special-heading.av-kbhx7ivj-54d1b4cc27493fa15a059a5257f32ab2{\npadding-bottom:10px;\ncolor:#ffffff;\nfont-size:30px;\n}\n.av-special-heading.av-kbhx7ivj-54d1b4cc27493fa15a059a5257f32ab2 .special-heading-inner-border{\nborder-color:#ffffff;\n}\n<\/style>\n<div  class='av-special-heading av-kbhx7ivj-54d1b4cc27493fa15a059a5257f32ab2 av-special-heading-h3 custom-color-heading blockquote modern-quote  avia-builder-el-1  avia-builder-el-no-sibling  banner-heading av-inherit-size '><h3 class='av-special-heading-tag '  itemprop=\"headline\"  >Consumer Education<\/h3><div class='special-heading-border'><div class='special-heading-inner-border'><\/div><\/div><\/div>\n<\/div><\/div><\/main><!-- close content main element --><\/div><\/div><\/div><div id='after_section_1'  class='main_color av_default_container_wrap container_wrap sidebar_right'  ><div class='container av-section-cont-open' ><div class='template-page content  av-content-small alpha units'><div class='post-entry post-entry-type-page post-entry-793'><div class='entry-content-wrapper clearfix'>\n\n<style type=\"text\/css\" id=\"style-css-av-k943cqkn-ba4d29f0ef4b7d46fe4fe8feeb5ba900\">\n#top .flex_column.av-k943cqkn-ba4d29f0ef4b7d46fe4fe8feeb5ba900{\nborder-radius:0px;\n-webkit-border-radius:0px;\n-moz-border-radius:0px;\npadding:30px;\nbackground:url(https:\/\/nclnet.org\/wp-content\/uploads\/2020\/08\/CONSUMER-300x200.jpg) top left no-repeat  ;\n}\n<\/style>\n<div class='flex_column av-k943cqkn-ba4d29f0ef4b7d46fe4fe8feeb5ba900 av_one_full  avia-builder-el-2  el_after_av_section  el_before_av_hr  avia-builder-el-first  blue-overlay first flex_column_div avia-full-stretch '   ><p>\n<style type=\"text\/css\" id=\"style-css-av-kl10unju-f09f142a23aa360fa8a296e1381ad629\">\n#top .av-special-heading.av-kl10unju-f09f142a23aa360fa8a296e1381ad629{\npadding-bottom:10px;\n}\n<\/style>\n<div  class='av-special-heading av-kl10unju-f09f142a23aa360fa8a296e1381ad629 av-special-heading-h3 blockquote modern-quote  avia-builder-el-3  el_before_av_hr  avia-builder-el-first  heading-underline '><h3 class='av-special-heading-tag '  itemprop=\"headline\"  >NCL Consumer Education Policy<\/h3><div class='special-heading-border'><div class='special-heading-inner-border'><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" id=\"style-css-av-k943p4ud-9bf0fdcc1579bd0385cb84d66a77419b\">\n.hr.av-k943p4ud-9bf0fdcc1579bd0385cb84d66a77419b{\nheight:150px;\n}\n<\/style>\n<div  class='hr av-k943p4ud-9bf0fdcc1579bd0385cb84d66a77419b hr-invisible  avia-builder-el-4  el_after_av_heading  el_before_av_textblock  '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div><br \/>\n<section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock font-color-white av_inherit_color '  style='color:#ffffff; '  itemprop=\"text\" ><p>The following are the official policy statements, adopted by the Board of Directors, the governing body of the National Consumers League, which guide the advocacy work of the organization.<\/p>\n<\/div><\/section><\/p><\/div>\n\n<style type=\"text\/css\" id=\"style-css-av-k94euqwa-0f96441aaeb77dc073b0ba0d27db70e3\">\n.hr.av-k94euqwa-0f96441aaeb77dc073b0ba0d27db70e3{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-k94euqwa-0f96441aaeb77dc073b0ba0d27db70e3 hr-invisible  avia-builder-el-6  el_after_av_one_full  el_before_av_one_full  '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" id=\"style-css-av-35l7n-785fcf5109b44e964b927cf36a9725e8\">\n#top .flex_column.av-35l7n-785fcf5109b44e964b927cf36a9725e8{\nborder-radius:0px;\n-webkit-border-radius:0px;\n-moz-border-radius:0px;\npadding:0px;\n}\n<\/style>\n<div class='flex_column av-35l7n-785fcf5109b44e964b927cf36a9725e8 av_one_full  avia-builder-el-7  el_after_av_hr  avia-builder-el-last  first flex_column_div av-zero-column-padding '   ><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock  '   itemprop=\"text\" ><p>Knowledgeable consumers can participate more fully and effectively in the marketplace.\u00a0 The more consumers know about their rights and responsibilities as well as about the goods and services they buy, the better they are able to protect themselves, make sound purchasing decisions, and contribute to the economy.\u00a0 In the process of developing educational information for consumers, industry and government become more conscious of consumer needs, concerns, and interests, which can stimulate economic growth and underscore the changes needed to better serve consumers. In essence, consumer education can be the catalyst for changing individual behavior, strengthening enforcement of laws and regulations, developing alternatives when marketplace practices cannot be readily changed (as in a regulated market), and increasing effective citizen participation in the marketplace.<\/p>\n<p>In an age of rapidly advancing technology, consumer education takes on an even more important role than in the past.\u00a0 The proliferation of new markets, products, and services through the internet and other technology, creates the potential for large gaps in consumer knowledge and understanding and thus for marketplace abuse of unwary consumers.\u00a0 Also, the ever-increasing amount of marketing directed at young people and children make the start of consumer education at an early age critical.<\/p>\n<p>Children in a school setting are increasingly targets of advertising and other forms of marketing included in educational materials and programs.\u00a0 NCL opposes this type of marketing to children in schools. Any corporate informational materials or programs in schools should be objective and stripped of all sales messages that are designed to impact or have the effect of influencing the purchasing behavior of children or their parents.<\/p>\n<p>The United States is blessed with a diverse population.\u00a0 It is to the benefit of consumers and the marketplace alike that consumer education comprehend this diversity and be structured in such a way as to ensure the inclusion of all people.<\/p>\n<p>In subscribing to the principles outlined above, NCL supports the following to enable consumers to function effectively in the marketplace:<\/p>\n<p>1. That educational resources be devoted to developing consumer education programs for kindergarten through graduate school, training teachers, developing adult courses and continuing education programs, and supporting community-based consumer education;<\/p>\n<p>2. That federal, state, and local governments set goals for educating consumers and commit resources to implementing those goals;<\/p>\n<p>3. That all providers of goods and services furnish consumer information at the point of purchase in a form that will be most easily understood by consumers, including alternate languages where appropriate; and<\/p>\n<p>4. That business and labor develop and support relevant consumer information and education programs.<\/p>\n<p>\u2013\u2013Adopted December 13, 2000<\/p>\n<p><strong><u>Structured Settlements:<\/u><\/strong>\u00a0 NCL has partnered with the American Association of People with Disabilities (AAPD) and the National Structured Settlements Trade Association (NSSTA) to promote legislation to protect personal injury settlements with Members of Congress on Capitol Hill.\u00a0 NCL has worked to enact State Structured Settlement Protection Acts in states all across the Nation.\u00a0 NCL worked with directly the Maryland State Attorney General to pass the Nation\u2019s strongest and most effective SSPA and worked with the Washington, D.C. City Council to pass the first Structured Settlement Protection Act in the Nation\u2019s Capitol. NCL has also partnered with nationally recognized consumer advocate Suze Orman to highlight the critical importance of smart and comprehensive settlement planning for injured people.<\/p>\n<p><strong><u>NCL Position Paper:\u00a0 Structured Settlements:<\/u><\/strong><strong>\u00a0 <\/strong>Structured settlements enable seriously injured people and their families to live with economic security, dignity, independence, and freedom from reliance on government.\u00a0 Structured settlements constitute a private sector funding alternative to taxpayer-financed assistance programs to meet the ongoing, long-term medical and basic living needs of seriously-injured persons and their families, providing long-term financial security through an assured stream of payments tailored to the injured person\u2019s needs throughout his or her lifetime.\u00a0 Thus, structured settlements enable seriously-injured people to live with dignity and financial independence, free from reliance on government programs and interference.\u00a0 <u>Click here<\/u>\u00a0 to read the full NCL position paper.\u00a0 (Attachment #001)<\/p>\n<p><strong><u>NCL PTSD Issue Paper<\/u><\/strong><strong><u>: <\/u><\/strong>Money Damages Recovered on Account of Post-Traumatic Stress Disorder Should Be Excluded from Gross Income Under IRC Section 104(a)(2).\u00a0 Twenty Members on the House Ways and Means Committee have written to Treasury Secretary Yellen and IRS Commissioner to request the Internal Revenue Service (IRS) issue a revenue ruling clarifying that Post-Traumatic Stress Disorder (PTSD) and its related damages are physical injuries or sickness and excludable under Section 104(a)(2) of the Internal Revenue Code.\u00a0PTSD was not recognized as a mental disorder by the American Psychiatric Association until 1980 but has been recognized as an illness affecting soldiers since the Civil War.\u00a0 Not limited to soldiers, it affects men, women and children, soldiers and civilians alike, and left untreated, can result in permanent physical and cognitive disabilities and even death.<\/p>\n<p>Under the current Tax Code, Section 104(a)(2) only provides tax exempt recoveries to victims of physical injuries or sickness.\u00a0 In order to distinguish physical injuries from purely emotional distress type injuries, Congress amended Section 104(a)(2) of the Internal Revenue Code to require that for tax exemption, injuries or sickness must be physical in nature. The IRS later interpreted this to require the demonstration of some sort of observable harm. At the time, medical science was not sufficiently advanced to identify the structural damage done to the brain by PTSD. This remains the standard today.\u00a0 <u>Click here <\/u>to read the full PTSD Issue Paper.\u00a0 (Attachment #002)<\/p>\n<p><strong><u>NCL Position Paper:\u00a0 Just the Facts about Structured Settlements Versus Factoring:<\/u><\/strong><strong>\u00a0 <\/strong>Structured settlements are a proven way for an injured party to receive compensation in a physical injury case.\u00a0 A structured settlement is a stream of periodic payments paid to an injured party through the purchase of an annuity (fixed and determinable) issued directly by a highly rated life insurance company. Structured settlements provide physical injury victims with financial security through guaranteed long-term, <u>income tax-free<\/u> payments. Settlements designed to meet the needs of individual injury victims and their families are negotiated between claimants (or their guardians or other authorized representatives) and defendants (or their insurers) through their respective attorneys, each with the assistance of licensed brokers specially appointed by the life insurance companies.<\/p>\n<p><strong><u>NCL Promotes Fair Consumer Protections Against Factoring Abuses:<\/u><\/strong>\u00a0 Sally Greenberg, NCL President stated, \u201cAll of us\u2014structured settlement consultants, attorneys, judges, and consumer advocates and leaders in the disability rights community have a shared responsibility to help protect injured persons and people with disabilities from abusive and misleading financial practices.\u201d\u00a0 Structured settlements provide periodic payments over a long period of time and thereby provide personal injury claimants with long-term financial security.\u00a0 The \u201cfactoring\u201d of structured settlement payments, where finance companies purchase structured settlement payment streams at a discount, is problematic for several reasons including that these \u201cfactoring companies\u201d pressure claimants to sell when there is no genuine need to sell, and because these factoring companies typically charge high discount rates and thereby pay only small amounts of money in exchange for a large amounts of future payments.\u00a0 There are rare circumstances where a claimant may have a need to unwind a structured settlement, and if those circumstances present themselves, the key to a successful transaction is a fair and reasonable discount rate, and of course other fair and reasonable terms.\u00a0 Unfortunately, most factoring transactions to not meet this standard.<\/p>\n<p><strong><u>NCL Supports Enactment of Structured Settlement Protection Acts in all 50 States and the District of Columbia:<\/u><\/strong>\u00a0 New Hampshire now joins all 50 states and the District of Columbia with the recent enactment of the new NH Structured Settlements Protection Act. This is a major milestone achievement that would never have happened without the tireless leadership and support of the National Consumers League.\u00a0 Thanks to NCL all 50 states and DC now have SSPA legal protections for people with structured settlements. This SSPA work has been accomplished state by state, starting in 1997 in Illinois with the steadfast commitment of consumer advocates, disability organization leaders and structured settlement industry leaders who made this happen.\u00a0 NCL remains the most influential association dedicated to protecting the rights of people with structured settlements.<\/p>\n<p><strong><u>NCL Successfully Led the Fight for the Enactment of the Maryland Structured Settlements Protection<\/u><\/strong>:\u00a0 Working with Maryland Attorney General Brian Frosh, Maryland State Court Officials and Maryland State Legislative Leaders, NCL helped produce the most effective consumer protections in the Nation against factoring abuses.\u00a0 The Maryland Court of Appeals gave final approval to extensive new Rules of Practice and Procedure that will apply to all Maryland SSPA petitions.\u00a0 The new rules, which have the force of law, were developed on an accelerated schedule in response to the Washington Post expose on factoring of lead poisoning settlements. Important highlights of Maryland Rules of Procedure Title 15, Chapter 1300 (Structured Settlement Transfers), Rules 15-1301 through 15-1307. Effective January 1, 2016 these new Rules:<\/p>\n<ul>\n<li>Mandate that any SSPA petition involving a Maryland resident payee be filed in the Circuit Court for the county in which the payee resides.<\/li>\n<li>Prohibit action on an SSPA petition in the absence of a hearing.<\/li>\n<li>Require personal attendance at the hearing by the payee (unless the payee\u2019s attendance is excused for good cause), the payee\u2019s independent professional advisor and the petitioner or an officer or employee who can testify for the petitioner<\/li>\n<li>Require that any petition under the Maryland SSPA include the following information:\n<ul>\n<li>A copy of the payee\u2019s structured settlement agreement, a copy of annuity that funds the settlement (or, if an annuity is not available, a document from the annuity issuer or settlement obligor evidencing the annuity payments) and a copy of any court order approving the settlement.<\/li>\n<li>Detailed written consent of the payee.<\/li>\n<li>A detailed affidavit of the independent professional advisor who has advised the payee.<\/li>\n<li>Salient information about the petitioner, including whether it is registered to do business in Maryland.<\/li>\n<li>Information about prior transfers and attempted transfers involving the payee\u2019s payment rights.<\/li>\n<li>A statement whether \u201cto the best of the petitioners knowledge\u2026the structured settlement arose from a) a claim of lead poisoning, or b) any other claim in which an allegation was made in a court record of a mental or cognitive impairment on the part of the payee.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong><u>NCL Leadership Secures Passage of the First Ever Structured Settlements Protection Act in the District of Columbia:<\/u><\/strong><strong>\u00a0 <\/strong>In 2018, NCL led the fight for passage of the DC Structured Settlements Protection Act.\u00a0 Thanks to the NCL leadership the DC Council Judiciary Committee and the full Council of the District of Columbia voted unanimously to support passage of the new DC Structured Settlements Protection Act of 2018. The District of Columbia will now join 50 states that have enacted such important legislation to enhance the protection of consumers who depend on structured settlements resulting from personal injuries. \u00a0It is NCL\u2019s mission to ensure the rights of injured parties with respect to their structured settlements. The provisions included in the District of Columbia\u2019s new SSPA are extremely beneficial to the long-term financial security of people with structured settlement annuities.\u00a0 The new measures provide meaningful court protection, among other safeguards, for DC residents who might be contacted by factoring companies offering to buy out their annuities for pennies on the dollar. The Act assures that DC courts will have full information with which to make decisions on whether a proposed transfer is in the best interests of a given payee and their dependents.<\/p>\n<p><strong><u>NCL Applauds Warren Buffett\u2019s Statement in Support of Structured Settlements:<\/u><\/strong><strong>\u00a0 <\/strong>Warren Buffett\u2019s annual meeting has become one of the financial highlights for investors each year as tens of thousands attend in Omaha and millions watch online.\u00a0 Recently, he highlighted the important work of trial attorneys and the necessity for them to protect their client\u2019s financial recovery.\u00a0 Mr. Buffett also emphasized the need for attorneys to offer their clients the option to structure a portion of their settlement.\u00a0 There are many significant advantages to a personal injury claimant placing all or a portion of their legal settlement proceeds in a structured settlement, rather than accepting the entire settlement as a lump sum. Warren Buffett, Chairman of Berkshire Hathaway recently stated:<\/p>\n<p><strong><em>\u201cAnyone settling a personal injury claim should seriously consider a structured settlement as part of their plan for financial recovery. Structured settlements can stretch settlement funds by providing tax-free payments for lost income, medical bills, or other future needs, which delivers tremendous long-term security for injured people and their families. Berkshire Hathaway is proud to be a leading provider of structured settlement annuities.\u201d<\/em><\/strong><\/p>\n<p><strong><em><br \/>\n<\/em><\/strong>What does Warren Buffett know about structured settlements, leading him to promote structured settlements publicly? He knows the following about structured settlements:<\/p>\n<ul>\n<li>A structured settlement of a physical injury or workers compensation claim is tax-free.<\/li>\n<li>A structured settlement can provide regular monthly, quarterly, bi-annual or annual<\/li>\n<\/ul>\n<p>payments as well as intermittent lump sums (for example, to pay for a first house).<\/p>\n<ul>\n<li>A structured settlement can provide life contingent income (income that cannot be outlived).<\/li>\n<li>A structured settlement has a fixed rate of return. When markets crash, structured<\/li>\n<\/ul>\n<p>settlements maintain their secure value.<\/p>\n<ul>\n<li>Most traditional investments have ongoing overhead costs including management and administrative fees. Structured settlements do not.<\/li>\n<li>A structured settlement protects settlement proceeds from being spent too quickly.<\/li>\n<\/ul>\n<\/div><\/section><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"parent":92,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false},"acf":[],"_links":{"self":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/pages\/793"}],"collection":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/comments?post=793"}],"version-history":[{"count":5,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/pages\/793\/revisions"}],"predecessor-version":[{"id":22762,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/pages\/793\/revisions\/22762"}],"up":[{"embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/pages\/92"}],"wp:attachment":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/media?parent=793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}