Wednesday, March 2, 2011

US Claims Purchase by outside company

A week or so ago I posted a message about an offer to purchase my claim against Nortel US.
Following that post there has been a lot of discussion on the Yahoo Nortel
Pension group regarding the purchase of claims.

The following message was posted by a member who followed up on the idea and actually sold his claim to a company who is in the business of buying up claims and then making money when the assets are finally settled. As you can see from the message it is a bit more complicated than at first glance.

This is the message:

About two weeks ago I read a post to the group regarding an offer to purchase
their claim in the Nortel bankruptcy. Intrigued, I tracked down the company
mentioned and solicited my own bid at a rate of 40 cents on the dollar.

Thank goodness I live by the old axiom "never accept the first offer". I did
some research and came up with the names of four other companies that are
snapping-up claims........and proceeded to contact each of them. The LOWEST
rate I was offered was 55 cents on the dollar. Ultimately I sold mine for even
better than that. Didn't even have to wait for a check........they sent an
electronic fund transfer on the same day I returned the form.

Any of you receiving a bid absolutely MUST read the fine print in the contract.
In addition to withholding 35-40% for taxes (court mandated for severance
claims), several offers came with caveats that could lead you to serious
exposure to legal fees and other forms of financial jeopardy.

Seller beware!

A small footnote that will be frustrating news to some. All 5 companies I dealt
with were only interested in purchasing claims for which a severance contract
was included and an amount was "scheduled" on the claim form. That doesn't
necessarily mean people laid off without a severance agreement will not receive
compensation eventually. But it does mean you probably can't sell your claim.

1 comment:

  1. I utterly attitude and revalue your bushel on each and every target.
    PPI claims