by Structured Settlement Watchdog®
DRB Capital's specious marketing strategy to structured settlement annuitants included scaring an annuitant that the life insurance company could go insolvent. In a September 2016 ad on the CT disclosure to Nakeitha Makeba Rose of Bridgeport CT, DRB Capital attempted to justify its discount rate by summoning up the ghosts of AIG and Lehman Brothers from 2008. What a pity that yet another member of the National Association of Settlement Purchasers scrapes the bottom of the barrel with this "cheesy mousetrap".
" Structured settlements are only as good as the insurance company that has to make payments. In 2008, AIG International, one of the largest insurance companies in the world came within days of becoming insolvent and going under-it was only a gigantic loan of some $178 billion dollars from the US Treasury that saved the company. The same couldn't be said for Lehman Brothers, a multi-billion dollar global financial firm that filed for bankruptcy around the same time. Lehman Brothers could trace its roots back to late 1800s but, in just a week, became insolvent and filed for bankruptcy. In a structured settlement transaction that kind of risk is passed from You to purchasers like DRB." -Superior Court CT Judicial District of Bridgeport Case FBT-CV17-6062054
Specious "Having deceptive attraction or allure"
Why Was DRB Capital's CT Disclosure to Nakeitha Rose Misleading?
- Lehman Brothers was not an insurance company.
- Let's get our entities straight. The AIG core insurance business companies (life, health, annuities) were not what caused the 2008 impairment of American International Group, Inc. In 2008 AIG was a leader in many lines of insurance worldwide. The company operated globally on multiple silo business model. The toxic assets were confined to a single business unit.CNBC reiterated September 16, 2008 that the insurance subsidiaries (which would include those writing structured settlement annuities) would be OK in the event of bankruptcy.
- The AIG Bailout is Over. Say A Prayer for the Victims of Structured Settlement Cash Now Vultures "No taxpayer should be pleased that the government had to rescue this company, but all taxpayers should be pleased with today’s announcement, ending the largest of the government’s financial industry bail-outs with a profit to the Treasury Department" Jim Millstein , US Treasury former chief restructuring officer
- No structured settlement annuitants written by AIG owned life insurers stopped making payments throughout the financial crisis.
- Nakeitha Rose's annuity is on the paper of Transamerica Life Insurance Company which held and still holds an A+ (Superior) rating from A.M. Best, and currently holds an AA-rating from Standard & Poors.
Novation Funding "Maximum Payouts" Research Tipped Off Structured Settlement Watchdog
I came across the Nakeitha Rose case during the course of my ongoing investigation into discount rates charged by Novation Funding LLC ,generally set forth in statutory disclosures. Nakeitha Rose applied to sell structured settlement payment rights in life contingent payments totaling $335,291.82 for $40,155 in cash. It turns out In the subject case which I have cited above, DRB Capital intervened, alleging that Novation Funding tried to poach a deal already under contract to sell, albeit for $5,000 less ($35,140.04)
Ironically as part of the add on to the CT statutory disclosure, DRB Capital says "As with most things, the true market value of the payments is what a buyer is willing to pay", thus confirming that DRB Capital was not paying, by its own definition, "true market value"
Nakeitha Rose waived independent professional advice.
A $500 fee seems cheap when you've lost 10 times that amount.
If you have done business with any structured settlement factoring company and they have used the same language as was done with Nakeitha Rose, please submit a report to the Structured Settlement Watchdog®