by Structured Settlement Watchdog
Seven Big Reasons that Settlement Depot is unreliable for structured settlement advice
Settlement Depot LLC was only formed in June 2018 in Delaware, it's website was anonymously registered June 12, 2018. Red Flag. The company is also registered in California through a registered agent. The company has published a website that has made some bold and unsubstantiated claims.
Settlement Depot Bogus Claim 1 "We can get you the money you’re owed, the money you deserve, quickly and easily".
FACT: No structured settlement buyer can get you "the money you're owed". The most any structured settlement buyer can get you is a money losing pennies on the dollar. Yeah, that's right! Settlement Depot compounds the misleading advertising by repeating the bogus claim on its Twitter feed just yesterday.
Settlement Depot Bogus Claim 2 " However in 1982, Congress deemed structured settlements tax-free so long as they come from cases involving wrongful death, personal injury and/or workers compensation"
FACT: The Periodic Payment Settlement Tax Act of 1982 does not mention the term structured settlement even once.
Settlement Depot Bogus Claim 3 " Additionally annuity owners who want to transfer the money from one family member to another do not have to tax that money"
FACT: Annuity owners don't levy taxes.
Settlement Depot Bogus Claim 4 All structured settlements are tax-free. They’re often broken down into physical and non-physical injury categories. Physical injuries are things like broken bones. Non-physical injuries are everything else. "
FACTS: All structured settlements are not tax-free. Some are and some aren't. The tax exclusion under IRC 104(a)(2) includes physical sickness. Damages for wrongful imprisonment are income tax free subject to IRC 139F
Settlement Depot Bogus Claim 5 " Having decades of experience, Settlement Depot can help you figure out whether or not you have to pay taxes on your structured settlement"
Comments: See Settlement Depot Bogus Claim 3. Why should anyone trust Settlement Deposit when the evidence they themselves present shows a woeful lack of understanding of the fundamentals of structured settlements?
Settlement Depot Bogus Claim 6 "Our team of financial advisors are the best in the business".
Comments: The structured settlement secondary market is plagued by individuals and companies who hold themselves out as financial advisors without credentials. Settlement Depot is disingenuous for claiming that they have (a) a team of financial advisors and making the disprovable claim that they are the best in the business, by not identifying the individuals on their website so that they can be verified by or for consumers on the websites of relevant licensing or credentialing authorities.
A financial adviser is a professional who suggests and renders financial services to clients based on their financial situation. In many countries Financial Advisors have to complete specific training and hold a license to provide advices. In the United States for example a financial advisor carries a Series 65 or 66 license and according to the Financial Industry Regulatory Authorty (FINRA), license designations and compliance issues must be reported for public view
FINRA describes the main groups of investment professionals who may use the term financial adviser to be brokers, investment advisers, accountants, lawyers, insurance agents and financial planners.
Settlement Depot Bogus Claim 6 ."Another significant benefit of selling your structured settlement is that it gives you freedom. You can do whatever you want to do without having to worry about future payments or doing complicated budgets. You have full use of your money to use in whatever way you see fit".
Comments: Classic snake oil salesman talk by Settlement Depot. One of the reasons people get into financial trouble is because they don't budget and then have no way to measure and be accountable to themselves on spending.They don't plan to fail but they fail to plan. The Settlement Depot snake oil salesmen are predators who offer you a guaranteed to lose money value proposition.
Budgets do not have to be complicated. Intuitive software, like Quicken, has been available for more than 30 years. One of the biggest concerns is running out of money or outliving assets. Selling your structured settlement for the reasons propounded by Settlement Depot is a sure way to financial ruin.
Settlement Depot Bogus Claim 7:The defendant in a structured settlement case funds these payments, usually through a life-insurance-owned annuity
FACT: Life insurance a form of insurance to cover the contingent financial loss resulting from the death of an insured to the insured's family or business. Life insurance policy is a written contract on several sheets of paper. A life insurance is established after an application is made and the proposed insured undergoes an underwriting process. Premium is paid to cover the contingency of the insured's death. A written contract cannot own an annuity. Structured settlements are typically funded with a structured settlement annuity issued by a life insurance company. The owner of the annuity is the qualified assignment company in most cases.
Subsequent to this posting it was discovered that Settlement Depot is connected to a member of the National Association of Settlement Purchasers