 Servicing of structured settlement payments occurs when a structured settlement payee sells only a portion of their future structured settlement payment rights, yet concurrent with the transfer, the factoring company also enters into an agreement to "service" the structured settlement payments that have not been sold.In "servicing" practice, one check is made payable to the factoring company instead of one to the factoring company and one to the payee.The factoring company receives the entire structured settlement payment, when due from the annuity issuer, takes what is owed to it and "passes through" the balance to the payee.