by Structured Settlement Watchdog
American Equity Funding are mortgage brokers dabbling in buying structured settlements. Perhaps that explains why there is no mention of structured settlements on the Van Buren, Arkansas company's BBB profile. Yet American Equity Funding dispenses awful financial advice by implying that a money for value reason to sell structured settlement payments rights (for cents on the dollar) occurs when these carrots are dangled:
- Dream vacation
- New car
- New boat
- New RV
- New ATV
The American Equity Funding "carrots" are pretty much devoid of financial nutritional value. With the exception of possibly needing a reliable car for transportation, not a single of their other ideas is a legitimate reason to sell your structured settlement payments. In fact American Equity Funding contradicts itself by saying "we all know money loses value over time". The wisdom selling your asset for cents on the dollar and then using the proceeds to make a discretionary purchase of a non essential item that will immediately depreciate, raises a sea of red flags.
American Equity Funding calls on you to "work with an experienced and honest buyer of annuity structured settlements to get the most money for your payments" and "Think of all the things you could do if you had that cash now instead of waiting for small amounts scattered over 20 years!". If American Equity Funding is not going to honest to the consumers it solicits then perhaps it's wise to avoid American Equity for structured settlement advice.
An example of American Equity Funding failure to articulate the fundamentals of structured settlements
"The way an annuity structured settlement usually works, is a general sum of money is awarded to the party, but it must be paid over time instead of receiving the full amount upfront". They also mischaracterize structured settlement payments as being "scattered over 20 years"
- A structured settlement is not awarded
- A structured settlement is the result of a negotiation where there is a compromise, hence the word "settlement"
- A structured settlement payee receives more over time than the cost of funding the structured settlement.
- Payments are not "scattered" like cremated remains or skimming stones. They're negotiated.