Settlement Funds
Settlement funds are large, sticky deposits that sit on the books for years, and require a back office most treasury departments can't staff. Hudson automates the transaction lifecycle, disbursements, compliance, and reporting.
Land the deal. Skip the back office.
Debt restructuring agencies and court-appointed supervisors process payments and claims for thousands of clients. They need the right financial institution to custody the funds, with an intelligent back office to help administer the programs.
Special purpose dedicated accounts accumulate monthly deposits until a settlement is negotiated and pay creditors according to contractually agreed upon terms.
QSFs, class actions, mass torts. A single court-supervised fund holds the settlement until the plan is approved, then disburses to thousands of claimants.
Enrollment, administration, and disbursements
The nature of consumer debt restructuring transactions requires that consumer funds are held in escrow while creditor negotiations play out over months or years. Financial institutions that can accommodate the business relationship can grow sticky, long-duration deposits.
KYC on the enrolling debtor, virtual account spun up.
ACH, wire, check, or RTP.
Funds held in dedicated accounts within a virtual sub-account structure.
Creditor payouts processed for approved and verified settlements.
One settlement with thousands of claimants
Court-ordered allocation, tiered claimant disbursement, and clean tax reporting run end to end so your team can win the deposits without scaling the operations team.
Court order in, settlement account opens with the right tax setup.
W-9 / W-8 collection, identity verification, tiered allocation matching.
Based on conditions in the settlement agreement.
Per-claimant 1099s auto-generated and distributed.
Specialty deposit verticals
Get in touch
Book a call to see how Hudson helps grow your escrow deal book without growing the team.
We’re looking forward to hearing from you.
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