Structured Settlements 4Real™ Blog: Structured Settlements | Settlement Planning News and Commentary

"Cash Now" Is Fiction and Dishonest Says Annuity Transfers, Ltd.

Even the structured settlement secondary market is criticizing "cash now" . Shannon Harvey, spokesperson from Richardson, Texas based Annuity Transfers, Ltd. has recently posted a clear and easy-to-understand explanation of why such claims are fiction.

In Summary, Harvey says this

"With ALL that being said you need to sit back and ask yourself — is a company being honest when shouting, or singing, “Cash Now” and “Funding in as little as 24 hours”? If they are following the law, this is not going to happen. Do not let anyone tell you differently. There is no reason to expect something in 24 hours or 2 weeks, or even a month. If someone tells you otherwise, they are not being honest, and dishonesty is not a good foundation for a good business relationship, especially when it comes to something as important as selling your structured settlement payments".

"Leading" Cash Now Pusher Hounds Jailed Structured Settlement Annuitant

They may have funny commercials but the recent actions of representatives of J.G. Wentworth to track down (through 3rd parties not a party to the payment rights) and exploit the desperation of a jailed client of a lawyer I know will go down in infamy.The jailed client had decided NOT to sell his structured settlement payment rights.

This morningThe exasperated lawyer, who represents personal injury victims, said to me that " it's unbelievable what level this company will go to..it's outrageous!"

As much as one can argue that the liquidity provided by factoring improves the structured settlement product its questionable solicitation practices like this that

One day the structured settlement factoring industry will seek to enhance its credibility by establishing and adhering to published standards of practice or agree to be regulated like the rest of us.

 

RSL Funding Leaves a "Scent Mark" on Imperial Structured Settlements' Fire Hydrant

RSL Funding has "lifted its leg" on the Imperial Holdings and Peachtree fire hydrants, with a press release announcing an office opening that is tantamount to leaving a "scent mark" on the latter two cash now pushers' Boca Raton Florida territory. The press release specifically mentions that the office opening is in view of the recent troubles faced by its two competitors.

According to published sources, "markings with scent not only indicate ownership, but also act as a canine bulletin board. You could call it doggy Pee-Mail. Scent communication left by urine tells other dogs who has been there before them, how long ago the mark was left, and other important information".

The scent of urine tends to fade as soon as it contacts the air. That’s why dogs constantly freshen up with new markings on top or nearby the original. That appears to be the case here.  Last October, in "RSL Funding Bitch Slaps Imperial" we provide commentary on the original "scent mark". Sources say that "some pups become so enthusiastic, they seem intent on throwing their hip out of joint to "baptize" everything they can reach"  That's our "Stewie"!  

One thing that needs to be corrected about the recent RSL press release. Imperial Holdings and Peachtree are mischaracterized as "structured settlement companies". They are, in fact, factoring companies, or, as I "affectionately" refer to them, "cash now pushers". They do not create structured settlements, they acquire structured settlement payment rights from annuitants who sell those rights to them, subject to a state court approval process.

 

Imperial Holdings Raided by FBI, Cash Now Pusher Only Went Public 6 Months Ago-Report

Cash Now pusher Imperial Holdings LLC was shut down and trading in its stock halted following an FBI raid at its Boca Raton, Fla., office on Tuesday. An FBI spokesman in Miami said agents were acting on a search warrant issued by the U.S. Attorney's office in New Hampshire. The New Hampshire office would not comment on the investigation according to this story in the Palm Beach Post

Imperial, which only went public 6 months ago, specializes in originating loans backed by life insurance policies and buys structured settlement payment rights stemming from lawsuits (at as we've reported above market discount rates), reported a profit of $12.6 million, or 59 cents per share, for the three months ended June 30. It reported a loss for the first quarter of 2011, as well as for the full years 2008, 2009 and 2010.

This latest news adds to the bummer for investors who have lost more than 40% on the stock since the IPO. I continue to feel sorry for the sellers of structured settlement payment rights who mortgaged their financial futures. Had they shopped around it is possible that they would have found that better deals were available.

I am eager to learn more about this story which has the potential to change the shape of regulation of the factoring industry.

Imperial Holdings said the following in a press release after business hours on September 27, 2011

"Imperial Holdings, Inc. ("Imperial") was served today with a search warrant issued by a Magistrate Judge for the U.S. District Court in the Southern District of Florida.

Imperial is a specialty finance company providing liquidity solutions with a focus on individual life insurance policies and purchasing structured settlement payments. The Company understands that it and certain of its employees, including its chairman and chief executive officer, and its president and chief operating officer, are under investigation in the District of New Hampshire with respect to its life finance business.

During the exercise of the warrant the Company fully cooperated. There has been no action taken against the Company's structured settlement business and the Company anticipates normal operations, across all of its business segments, will resume tomorrow.

"Today's action comes as a complete surprise. We are not aware of any wrongdoing and will cooperate fully with all relevant authorities to assist them in their investigation," said Antony Mitchell, chairman and chief executive officer, Imperial Holdings, Inc."

I want to emphasize that Imperial's structured settlement operations are in the secondary market. Lawyers who represent injured parties and plaintiffs who are contemplating structured settlements to resolve their lawsuits have no reason to be concerned.

 

How to Run a Winning Email Campaign for JG Wentworth

JG Wentworth or its agents are on the rampage today with blast emails offering to pay cash now for your structured settlement payments. Apparently the "dim wits" that sent out the email believed that an impressive way to engage potential clients is by by including the salutation "Dear [NAME]". Really? Yeah, really!

Download JG Wentworth Nameless Solicitation 9-27-2011

 

"The Altar of Syndication Shadenfreude: Unemployment TV Commercials"

Discussing "Unemployment TV", Kenneth Nichols "mugs" the structured settlement secondary market's cash now pushers.

"These commercials appeal to the viewer’s sense of unfairness in contemporary society.  Peachtree’s ad features disappointed people going to their mailboxes and finding them empty.  The actors and actresses riding a bus in another spot provide the underlying belief: “It’s my money and I need it now!”  The latter evokes perhaps the most potent recent depiction of frustration with modern society: Sidney Lumet’s 1976 film, Network.  Instead of being “mad as hell” about the degradation of American public discourse, the daytime TV demographic can be successfully motivated by appealing to their mere impatience, no matter the potential repercussions for a society unwilling to wait".  (emphasis ours)

A fun read ...With Our Help, You Can Have It All: The Depressing Rhetoric of Unemployment TV’s Commercials Kenneth Nichols September 15, 2011

The "Dunnest" Things Said About "Annuitys (Sic) and Structured Settlements

Virginia Dunn of Integrity Funding Sources, has "resurfaced" with all the fervor of a paraphrased Sam The Sham and the Pharoahs lyric:

I swear by the hair on my "Ginny" chin chin

I'm gonna find a way to get in

I'm gonna keep hangin' around

Till I huff and puff and blow the structure "house" down

Let's set aside the snafu in the title of the Portland Oregon based cash now pusher's post "Annuitys (sic) & Structured Settlements: The Controversy Of Selling Payments" which occurs throughout the post

Virginia M. Dunn: "Is it legal to sell your structured settlement or annuity payments? Your insurance company will tell you "NO". And yet people are selling them all the time. What is the real scoop here?"

Structured Settlement Watchdog:  The majority of states have structured settlement protection acts which govern the process of selling structured settlement payment rights. The structured settlement protection acts were put in place to protect consumers, in part because prior to their enactment it was not uncommon to see discount rates charged by purchasers that were in the stratosphere. If an insurance company is telling you NO as Virginia Dunn alleges then perhaps the individual has not satisfied the requirements of the structured settlement protection act in their state, or the person being canvassed is ignorant. Despite Ms. Dunn's misleading allegations, most insurance companies hire law firms to make sure that any selling transaction of structured settlement payment rights complies with the structured settlement protection acts and applicable Federal law. If she finds fault with the law then the beef is with legislators not the insurance companies trying to comply with the law.

Virginia M. Dunn: "The annuities themselves represent a very large income stream for insurance companies. ...the fact that the settlement awards are structured provides a means for the insurance industry to secure huge tax breaks from the government. Here is their pitch: By structuring the payments of an injury award over time, the insurance company is providing long-term support for the injured party, thereby keeping them off of welfare. By keeping these people off of the roles of government subsidy, insurance companies are providing a valuable public service - hence, they should qualify for tax breaks.

Structured Settlement Watchdog:Structured settlements for payment of damages that qualify under IRC 104(a)(2) [physical injury or physical sickness and wrongful death] offer income tax free benefits.  The tax subsidy also applies to workers compensation payments under IRC 104(a)(1)

Were there not a tax break under IRC 130, which creates an income tax exclusion for a company that takes on qualified assignments, purchases and owns qualified funding assets (such as annuities and United States Treasury obligations), subject to certain qualifications, victims of accidents, survivors of those killed in accidents or by the negligence of others would have fewer opportunities to structure. 

Prior to the Periodic Payment Settlement Act of 1982, such instruments were held by the defendants and insurers of those defendants. These parties had no legal obligation to enter into structured settlement agreements, but if they did they were saddled with a contingent liability on their books. And, if the annuity company were to later go insolvent as was the case with Executive Life of California (and may yet be the case with Executive Life of New York) the Defendant or Insurer with these contingent liabilities ended up having to make up a shortfall.

Last on this point, the ability to do a qualified assignment benefits the plaintiff in that their financial future is not tied to the financial fortunes of the Defendant or its insurer as a general creditor. Most assignees permit the plaintiff or payee to be a secured party of the assignee. The Defendant wins too because they it/they get to write off the paid loss when the obligation transferred to the assignee.

The structured settlement watchdog does not mind educated criticism of structured settlements. In my opinion, the least someone like Ginny Dunn can do is do the research instead of reminding me of another paraphrase of a Sam the Sham and the Pharoahs classic...  "Wooly Bullsh*t"

In conclusion it's worthy of note to observe the irony that Integrity Funding Sources uses the moniker IFS, to promote its cash now philosophy, while another unrelated company on the primary side of the market, also called IFS owns multiple structured settlement brokerages.

Shop Around With Structured Settlement Factoring Discount Rate Calculator If You're "Thirsty"

Sellers of structured settlement payment rights can keep the buyers honest by using the structured settlement factoring discount rate calculator, because when you're really thirsty for "cash now" the sellers of this financial "lemonade" can charge whatever the f%^&!^ they want (and can get past the court).

There is nothing illegal about lowballing you because a business can set its price based on its own cost of business and the perceived demand. But just because you're not living "The American Dream" right now doesn't mean the "low hanging fruit grabbers" among them need to live theirs on your back.

Stay cool, it's hot out there!

The Email Spammers Seducing People to Sell Structured Settlements

In the last few days I received several emails from "different" spammers who each sent the same blast email out with the following conflicting messages

• Get Cash for your structured settlement
• Don't Wait For a Settlement-Get Cash Now
• Learn More About Structured Settlements  (the opposite of cash now)
• There are "advisors" standing by to help you get the money you deserve today (then asking you to click now- quote marks added)

Fortunately the email blast also gives you the ability to "unsubscrive" (sic)

Clicking through gets you to a web pages where the "search results" feature at least one dead organic link, to Hartford Life Insurance Company at the URL "www.itthartfordlife.com".  Of course anybody who knows anything about The Hartford knows that ITT divested itself of The Hartford in 1995.  Here is the current list of businesses at ITT. So the people who created the web page that claims that this comes up in organic search resuts are full of it.

On the website resulting from the click through,  one finds the ubiquitous misleading sponsored ad from CBC Settlement Funding which implies that Presto! Shazam!  Zowie Wowie!,  you can change your structured settlement into cash now .

In the "spirit" of the 4th of July, a "slice" of "American Pie" (2) comes to mind...

It's as if former J.G.Wentworth lawyer and current CBC CEO Bill Skyrm and crew are part of "an expeditionary force of "cash now"-robots who have traveled back through time to change the future for one "lucky" structured settlement annuitant. That's right , you've been targeted for "Skyrmination"!  (for cultural purposes and in "honor" the release of "DSK" you get the French dub version). "Choose them if you want to live!"

Unfortunately the reality , regardless of whether it's CBC or someone else, is different than the implication. Aside from perhaps a nominal cash advance sales of structured settlement payments rights by annuitants require the approval by a judge. That could potentially take 60, 90 or more days.

 So who the heck owns this turdlet of website that one lands on from the spam email?

The email came from lucretia@pedestrianismo.com. Pedestrianismo.com chooses not to disclose its ownership through monikerprivavcy.net. The domain server is at immortaldog.net which also uses the same privacy service. Another copy of the same email came from tdb-engine.org which used the same privacy service in Pompano Beach, Florida, a city near where many factoring organizations are based.

The privacy policy on the website linked to the email lists a bunch of Australian Companies from the "Dark Blue Sea Group". Yet another email comes from the domain of the Rolla Missouri based Fulter Street Group.

 

 

 

 

 

 

 

"Court Validated" Gazumping Of Imperial Structured Settlements is Victory For Sellers, RSL Funding

RSL Funding claims victory in the tortious interference battle between it and competing factoring company Imperial Structured Settlements in a Harris County Texas Court.  Imperial sued RSL claiming it had a selling structured settlement annuitant under contract, before RSL gazumped them with a better offer  (see: Washington Square Financial LLC (DBA Imperial Structured Settlements) v RSL Funding LLC Cause 201049166  Judge : Jeff Shadwick)

Order Granting RSL's Summary Judgment v Imperial structured Settlements on June 14, 2011 Download Order Granting RSL Summary Judgment Over Imperial Structured Settlements  . A copy of the relevant Court documents can be purchased here

According to RSL, Imperial argued that its proposed transfer agreement that had not yet been approved by a court is an enforceable contract with its customer, so that any competitor offering more money to the customer is subject to a claim for "tortious interference with an existing contract," when in fact, Imperial has no legal right to prohibit competition.  RSL contended that a consumer deserves the best price and that the rights under the contact do not vest until the judge actually approves the deal.

In the "home town" win for RSL, the Texas court upheld the annuity recipient's right to continue seeking competitive offers until an enforceable contract with the customer is in place. As a matter of law, no structured settlement company can bind a customer to a transfer agreement until an application for transfer of structured settlement payment rights has been approved by the courts and not until an order of transfer has been entered by a court. Until these contractual prerequisites are met, customers are welcome (and encouraged) to continue looking for offers that serve their best interests.

Other Court structured settlement protection acts such as California, which this author understands to be the largest market for structured settlement factoring allow the payee to back out at any time right up until the court hearing.

Why shouldn't a structured settlement annuitant be able to shop around like "their mama" told them?

 

The RSL press releases continually cite to the Structured Settlement Institute, which the press release states is " a not-for-profit organization established to educate sellers of structured settlements regarding fair and equitable industry practices"

On the other hand the "About Us" section of the website for The Structured Settlement Institute say SSI "works with you and your long-term insurance based payments, to help you gain liquidity fast from the right company." I

It goes on to say...

"In a time of settlement buyers resorting to lumping your annuities or settlements in a large group in order to sell off  (sic), The Structured Settlement Institute alone (sic). The Structured Settlement Institute is a principal that uses their own resources  (i.e. $$$) and money to close the transaction. We don’t sell your annuity or settlement, instead we do what is responsible. We maintain our position of responsibility for the entirety of your transaction. Which will guarantee the court’s rulings are upheld and your money is distributed as agreed. The Structured Settlement Institute is bonded for all transactions"

According to Whois records with GoDaddy that were just updated June 14, 2011 (the day of the Court victory that RSL Funding claims against Imperial) the site is registered to Stewart Feldman, a Houston lawyer who is in charge at RSL. While I'm not suggesting any wrong doing, I think it would be behoove the Structured Settlement Institute to be a little more transparent.

Who runs it? Who are its directors? Who funds it? Is there an IRS form 990 that someone can supply to this author?