by Structured Settlement Watchdog
The National Association of Settlement Purchasers has updated its website. While more modern and informative, it's not all good.
NASP Membership is a privilege held in the legal name of the approved entity which is the member. A member may refer to itself or may designate a single affiliate or fictitious name as the brand holding itself out to the world as a NASP Member in communications, marketing materials, or other manner.
This membership requirement however does not seem to reign in companies from using marketing networks as CBC Settlement Funding has done, which through Annuity.org, Structuredsettlements.com and Sellanyannuity.com, do a disservice to the public with inaccurate poorly researched information.
What's Wrong with National Association of Settlement Purchasers?
- The title tags for the website that appears in web searches as the National Association of Settlement Providers is not an accurate refection of what its members do. NASP members do not "provide settlements", they purchase structured settlement payment rights. This misrepresentation however, does not carry to the home page of the NASP website.
- One of Silo Headings is "Settlement Options". Nothing that any NASP member does has to do with settlement options. It has to do with structured settlement factoring options or liquidity options, of which NASP members offer different versions of the single factoring option. For example selling all or part of your structured settlement payment rights is not a settlement option at all.
- The NASP membership roster includes Rightway Funding of Ft Lauderdale Florida ( deemed a "structured settlement factoring parasite" by NASP member DRB Capital LLC in a press release related to a recently filed legal complaint in Palm Beach County Florida) and the financial rapists of Cedric Thomas, Novation Funding.
- NASP has framed a fair discount rate as a range between 9% and 18%, which is intellectually dishonest. Consider that Allstate annuitants can get an 8% discount rate under its Advance Funding Exchange program and Berkshire Hathaway annuitants can get a 6.5% discount rate, you have to raise you hands and sigh (in unison) " WTF?" The NASP stated range is a range that is good for investors and securitizations not annuitants.
Annuitants shouldn't use 9%-18% as a frame of reference even if not receiving structured payments from Allstate of Berkshire Hathaway.There are plenty of deals that happen with dIscount rates as low as between 5-7%. A 2-4% difference on the low end could mean significant money in pocket to the selling annuitant or less to be sold to achieve a financial goal that is unachievable any other way. It could mean tens of thousands, hundreds or thousands or even millions of dollars. Take the Cedric Martez Thomas"financial rape" by NASP member Novation Funding in October 2015 for example. There was an estimated $1.4-$1.5 million profit spread that Novation took from a young black man from New York. One should question doing business with any settlement purchaser who tries to hurl that tripe.
Revealing Commentary | Double the Factoring, Worsening Behavior of Market Participants and Still No Regulation
In 2013, Matt Bracy, a Dallas lawyer and former President of the National Association of Settlement Purchasers, former General Counsel to Settlement Capital and then of the law firm of Nesbitt Vassar McCown stated is a message appearing on the Synergy Settlement website"...an estimated 5% of structured settlement recipients at some time find that they need liquidity"
In 2017, two years ago, as I reported, it was 15%
Now in 2019, the number is less than 20%. If that is a real statistic what could be the explanation?
- More aggressive sales tactics?
- Math is not one of Matt Bracy's better skills?
- A deliberate attempt for an industry whose skeletons are coming out of the closet with regularity now, to spin the true facts to fly under the radar of legislators and trial lawyers?
- The passage of time and the greater universe of structured settlements ready for exploitation by structured settlement factoring companies?
The intervening time frame has seen a flabbergasting amount of outrageous business conduct including criminal business conduct. To its credit, NASP recognizes some of this activity
NASP member DRB Capital, LLC announced January 15, 2019 that " as part of its continuing efforts to uncover and stop structured settlement fraud, the company has filed a complaint against NASP member Rightway Funding LLC, BTG Advisors LLC, Sempra Finance LLC, Greenwood Funding LLC, and JLC Capital Funding LLC in Palm Beach County, Florida".DRB Capital recently established the "Stop Structured Settlement Fraud" bounty program and tip line to pay awards totaling up to $100,000 to reward individuals who come forward with information proving violations of various laws in connection with the business of purchasing structured settlement payment rights. Violations include violations of state structured settlement protection acts, improper forum shopping, violations of state and federal deceptive and unfair trade practices act, and federal excise tax evasion. See Stop Structured Fraud.
Read my Structured Settlement Watchdog commentary