by John Darer CLU ChFC CSSC RSP
Cash now pushers spend huge sums of money on advertising each year. Memorable advertising such as JG Wentworth's tribute to zaftig Viking opera singers serves to increase brand awareness. As obnoxious as it is, and however misleading some of it is, it works. Silly sells!
Consider this story...
I received a call from a "cash now" consumer with buyer's remorse last night, who was having second thoughts and found our web site through our "fans" at JGW Sucks.
The consumer was a nice chap with, in my professional opinion, a valid reason for transferring some structured settlement payment rights. The consumer solely contacted the two biggest advertisers Peachtree Settlement Funding and JG Wentworth. The consumer started with JG Wentworth who, true to reputation, did not give their best offer. The consumer then approached Peachtree which bettered JG Wentworth's offer. The consumer then went back to JG Wentworth and received an offer that was a few thousand better than Peachtree's and thought he "negotiated" a good deal. How wrong he was.
We determined that the Peachtree offer was at an effective discount rate of over 22% and that the JG Wentworth counter offer was at a discount rate in excess of 18%. Neither of the offers from big advertisers were anywhere near competitive.
Fortunately for the consumer he still has the option to back out of (or renegotiate) the deal with JG Wentworth since no Court approval has been obtained. Others aren't so lucky. He was referred to sources we know that can offer better discount rates on the deal. Perhaps JG Wentworth will sharpen their pencils. Yet one wonders if it wasn't for this website and JGW Sucks whether the consumer would be just another victim of venditor emptor.
I also asked the consumer if he was aware of or told of any servicing agreement since only a portion of the settlement payments were to be transferred and many annuity issuers will not split payments.
Another quick story...
This morning I received a call from someone from Franklin, TN who was in desperate straits and after getting beaten about by a several factoring companies he stumbled upon this blog for which I might add he expressed his gratitude. The man had received an offer from Client First Funding when another company representative (from a big advertiser) expressed its doubts that Client First would be able to get Court approval to be able to execute because the offer "was too good".
SHOP AROUND FOLKS, SHOP AROUND. IF YOU WANT A GOOD DEAL, IGNORE THE BIG CASH NOW ADVERTISERS YOU SEE ON TV, NO MATTER HOW AMUSED YOUR ARE WITH THEIR ADVERTISING!