An open letter to Jon Liebowitz, The Chairman of the Federal Trade Commission in Washington DC
Please view this advertisement from 123 Lump Sum, the Florida company which solicits people nationally under the "cash now " scheme.
The company claims to be :
- A leader in "fast cash now" for structured settlements in various advertising forums
- The above video ad states 123 Lump Sum can give you cash today for your structured settlement
We believe the claims of 123 Lump Sum to be grossly false and intentionally misleading considering:
- The requirements under Internal Revenue Code Section 5891
- The requirements of individual state structured settlement protection acts which refute the caims
- The knowledge that the company has complaints on the website of the Better Business Bureau which eviscerate the claims of cash now, fast cash now or anywhere in between. http://www.trustlink.org/BusinessProfile.aspx?ID=206029806. Note that on 12/4/2009 the company has responded to the complaints on BBB and the responses further support the false advertising claim. The company says "the process of selling structured settlement payments is a very complicated financial and legal transaction with multiple parties involved and it requires filing a court order, procuring a hearing date and obtaining a signed court order approving the transfer". We agree with this statement which means that it isn't fast cash now
- The explanation given for payment delays in the BBB report centers on a contractual defense, that it has met the conditions of the contract for sale that the annuitant signed. That being said, does it not seem disingenuous given that at the same time the company solicits consumers to sell their structured settlements, which are created pursuant to a contract, on the suggestion that the payments are slow? The fact is that the underlying structured settlement payment amounts and times are exactly what the annuitant, or their legal representative contracted for.
- This author has been contacted and has names and phone numbers of 123 Lump Sum customers who have not received the results that 123 Lump Sum claims to be able to deliver.
123 Lump Sum is the marketing name for Structured Asset Funding of Hallandale Florida, The company's "moral standards" include encouraging structured settlement annuitants to sell their structured settlement payment rights for depreciating assets.
Structured Asset Funding/ 123 Lump Sum is not alone in making questionable advertising claims, but in this regard, they display among the worst business practices in the industry, in this author's personal opinion.
Note to Consumers:
As a consumer you can do something about it. You can write to us with your story by contacting this author by phone or email. We will publish your story so that others like you can learn from it.
You can also file a complaint with your state's Department of Consumer Affairs. If you do not know how to find them contact us and we will help you find them.
You can also file a complaint with the Federal Trade Commission ("FTC"). It is worth doing so because, based on the georgraphic diversity of calls received and belief the company is doing business across state borders. The FTC will not address your individual complaint but will accumulate complaints and then take action if the problem is deemed serious enough. You've heard of the 1,000,000 man man march or the 1,000,000 women march; this is the "fed up with false advertising consumers march"
File a complaint with the Federal Trade Commission against Structured Asset Funding a/k/a 123 Lump Sum by following this link