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March 30, 2010

How is The Primary Structured Settlement Market Dealing With Structured Settlement Factoring Advertising

by John Darer CLU ChFC MSSC RSP CLTC

J.G. Wentworth's own statistics suggest that less than 5% of structured settlements have been factored yet some attorneys shun structured settlements because of their fear that their clients will factor their settlements. Is this fear rational or irrational? This post examines the fear, explores the root of the fear and suggests a solution.

I was at an ABA TIPS conference in Washington in November 2005 where I was speaking on a panel about structured settlements. At the speakers dinner I overheard a fear mongering stock broker repeatedly emphasizing to anyone that would listen that structured settlements can be sold and the attendant risk to their clients.

The structured settlement industry has done a generally poor job of capturing advertising "shelf space" particularly on the Internet. Only a handful of primary market players regularly place high in the search results. Many companies have not found a way to effectively compete with the hedge fund and foreign money that is (one way or another) pumped into the advertising budgets of the likes of JG Wentworth, Peachtree and others. 

As one time visitor to the Galapagos Islands I gained a natural appreciation for the Darwinian theory of evolution or survival of the species, so I'm not whining about silver spoons, deeper pockets or ineffectual efforts of some competitors. What I am saying is that the advertising approach of some factoring companies may be harmful to the sale of structured settlements and ultimately the opportunities for such companies. If JG Wentworth is truly the "thought leader" that their "snookems" Pat HIndert characterizes them,  then why have they done so little about their over saturated advertising? So what if it's memorable.  If you pull your pants down in public it might also be memorable but distasteful. Same goes for Peachtree Settlement Funding,123 Lump Sum, Woodbridge and others.

Fraudulent advertising with the "cash now" message does not help build prestige for the factoring industry For some attorneys it erodes confidence in the structured settlement product and creates an open opportunity for competing products. I know I know. You try to explain it away by  giving them a "tuppence" now or say 90 days is "somewhat like now" depending on your perspective but who are we kidding?

 

 

 

 

Posted at 04:49 PM in Factoring Company Bad Business Practices, JG Wentworth Commentary, Peachtree Settlement Funding, Structured Asset Funding/123 Lump Sum, Structured Settlement Advertising, Structured Settlement Factoring News, Structured Settlement Watchdog®, Woodbridge Structured Funding LLC/ Woodbridge Wealth, Woodbridge Structured Settlement Funding, LLC |

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  • What Are Structured Settlement Annuities?
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  • History of Structured Settlements
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  • Firmwide Qualified Settlement Funds Debunked
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