by Structured Settlement Watchdog
The National Association of Settlement Purchasers is a joke. Here is another recent example of false and reckless advertising by a NASP member firm.
A. NASP company FALLACY "An annuity won’t gain interest over time'
NASP member company also says "It’s the modern equivalent of burying a box filled with cash in your backyard'.
Their solution Sell your annuity to them at a discount
FACT: If you buy any fixed immediate or deferred structured settlement or retirement annuity you will earn interest over time.
FACT: Unlike a box in the backyard NASP hole, no money invested in an annuity is exposed to the water table or burrowing animals who "leave their signature" upon discovering the NASP hole. Regulation is in place in all 50 states to assure that insurers maintain adequate reserves.
B. NASP Member FALLACY Because annuities are sold through other parties, you have to pay a commission on your investment.
Their solution Sell your annuity to them (at a discount spread that far exceeds the amount of any annuity commission0.
FACT: They make money on the spread between what their cost of money and the money they are willing to give you.
FACT: Unlike insurance commissions which are regulated by law and can only be paid to licensed insurance producers, the NASP member and the rest of its industry are massively unregulated, not currently required to be licensed and can charge whatever they feel like depending on the way the wind is blowing and until recently, in some place, which judge is sitting on the case.
C. NASP Member FALLACY While many people find that annuities are great retirement and insurance options, they aren’t for everyone — and you shouldn’t be penalized for changing your mind.
Their solution Sell your annuity to them at a discount
FACT: If you do business with any NASP member, I repeat ANY NASP member, you are guaranteed to lose large (in some cases massive) amounts of money by selling your structured settlement payments.
Ask Cedric Martez Thomas who in 2015 was the victim of Novation Settlement Solutions' predation. The West Palm Beach NASP member company literally skunked a naive 19 year old out of a $6,600,000 structure for $1,037,000 and got a Florida judge to approve the deal before the Florida Structured Settlement Protection Act was reformed. Cedric could have got in excess of $1.4 million more from two companies I canvassed in my research at the time. That is one hell of a penalty and makes whatever IRS penalties that are imposed on pre-59 1/2 distributions to encourage people to save, seem like chump change.
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