Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

CBC Settlement Funding Benefits From Another Misleading Website SellAnyAnnuity(Dot)Com

by Structured Settlement Watchdog

Operation "cash now sucks" continues thoroughout the structured settlement secondary market.

CBC Settlement Funding,  where they're hockin' in Conshohocken,  could care less about accuracy as long as it sucks financial benefits for cash now leads from lead generation websites festooned with misleading information about structured settlements, as I've shown time and time again. 

Here's CBC Settlement Funding's latest "dumpster dive",  on this occasion Sellanyannuity(dot)com produced by Webimax, a Mt. Laurel NJ company "that knows what it means to be the best":

"Selling part or all of your annuity can be beneficial if you have(sic) anticipate the economy to be worse off in the future. Selling now ensures you'll see the full amount of money. In the future, inflation or company bankruptcy could keep you from getting the full benefit".

FACT: If you sell your structured settlement payments you will NEVER get the full amount of money, no matter who you sell to.

FACT: A structured settlement is funded with an annuity contract. If there is inflation you will still receive your contracted benefit.

FACT: Life insurance companies cannot file for bankruptcy.

JG Wentworth, the most well known structured settlement purchasing firm HAS filed for bankruptcy, gone public, couldn't hack it and got delisted from the New York Stock Exchange. As of April 7, 2017 market close JG Wentworth had 9.32M in market capitalization.

FACT: The following companies issuing structured settlement annuities have been issuing annuities since the 1800s

• New York Life Insurance Company
• The Prudential Insurance Company of America
• Metropolitan Life Insurance Company
• United States Life Insurance Company in the City of New York
• Pacific Life

An economic cycle is the natural fluctuation of the economy between periods of expansion (growth) and contraction (recession). Think about what has happened in the world since the 1800s and these insurance companies, which issue structured settlement annuities, are still keeping their promises. On the other hand CBC Settlement Funding is so young they could be popping zits instead of putting their imprimatur on this sh*t.

 

via GIPHY

FACT: Not a single company soliciting consumers to sell their structured settlements has been in existence as long as any of the companies underwriting structured settlement annuities.

 

 

 

 

 

Prosperity Partners Rubbished | Jason Rigler's Frisbee Chasing Dog Could Do Better

by Structured Settlement Watchdog

Prosperity Partners has gone downhill fast.

When Jason Rigler ruled the roost for Prosperity Partners the worst you could get was comparing structured settlements to ants.  Now Prosperity Partners is just mailing it in with inaccurate information.

Prosperity Partners Serves Up Rubbish on Structured Settlements

Jason Rigler's frisbee chasing dog Kai could do better than this:

Prosperity Partners, Inc. will be happy to answer any questions you may have regarding structured annuity settlements for:

• Wrongful death & personal injury settlements    
• Medical malpractice lawsuits
• Product liability insurance settlements    [ you don't have settlements for settlements, well do ya punk?]
• Lottery prize awards  [ not a structured settlement]
• Contest winnings & casino jackpots  [ not a structured settlement]
• Royalties and trust  [not a structured settlement]
• Reverse mortgages   [not a structured settlement]
• Payday loans  [ not a structured settlement]

Prosperity Partners' intentional misrepresentation of these items as structured annuity settlements is useless to the structured settlement consumer content fluff. Vanilla scented twist tie bags are useful for this sort of thing.

 

 

Financial Samurai Falls on Sword With Fuzzy Logic

by Structured Settlement Watchdog

If you sell your structured settlement, it is indisputable that you are decreasing your net worth in an instant.

"Handling a large lump sum of cash can be exhilarating.  And it can be a little unsettling, too.  Money causes people to worry, and worry spins half-truths or unfounded myths about financial issues at hand. Selling your structured settlement into a lump-sum payment is an opportunity to increase your net worth — not limit it -   a "pro tanto discharge" credited to "Jason from JG Wentworth" guest post on Sam Dogen's Financial Samurai blog.

As someone who has jumped out of a perfectly good plane from 14,400 feet and  been in a free fall for 9,900 feet I would say THAT is exhilarating!  Fortunately at 5,500 feet my parachute opened.  Having stable core income is like a parachute. Few people who have structured settlement can afford a financial free fall and not have a parachute. Nor can they gamble by taking a big loss in net worth today by selling their structured settlement in the hopes of making more money in the future by taking more risk.

Expect to see more litigation against structured settlement factoring companies and others advising people who can ill afford risk to sell their stable income structured settlements at a big loss and alone or in tandem with other advisers put them into riskier investments. I have in my  possession a solicitation for investments on the letterhead of a member of the National Association of Settlement Purchasers (not JG Wentworth) which was not at the time of solicitation registered to sell securities or registered as a financial adviser.

It's the Stuctured Settlement Secondary Market Folks and the "#hits just keep on coming!"

Client First Funding | Can You Afford The Life You Want? Can You Afford Them?

Structured Settlement Watchdog®

Client First Funding has outdone themselves with a simple but disturbing tweet that poses the question "can you afford the life you want to live?" accompanied by their all too common" screen hogging" road signs, this one blaring "can you afford it?" with nothing more that Client First's banner ad, their phone number and the message "sell your structured settlement".

Client First Funding raises a poignant question but it fails miserably with its cheap and inadequate answer.

In my opinion, the question "can you afford the life you want to live?" implies two possibilities:

1. Are you overspending and have you got your self over your head with debt?
2. Are you eyes bigger than your stomach?  Are your ambitions bigger than your resources?
3. Can these be solved by selling your structured settlement?

Selling your structured settlement to Client First Funding, or any settlement purchaser should come with a warning label.

Regardless of who is soliciting you, selling your structured settlement means giving up current and/or future income at a steep discount. This is a path of last resort.

The answer to the poignant question asked (but miserably answered) by Client First Funding in its Tweet Ad, can be illustrated by this Venn diagram of two intersecting circles, one marked What Do You Want and the other What Can You Afford, symbolizing the tough spending decisions that must be made when keeping within a financial budget

 

© Iqoncept | Dreamstime.com - What Do You Want Vs Can You Afford

 

 

 

Big Flaws in Access Funding Get Cash Quickly for Structured Settlements Ad

by Structured Settlement Watchdog®

Access Funding's Top 10 Reasons to Sell Your Structured Settlement have more holes than an old sponge, with aspirations to soak up the value of your hard earned structured settlement payments.

In this post I will give you enough ammunition to respond "Loofah me Alone!"  when attempts are made to "gain access" to your structured settlement.  

So, let's get started...

Loofah Me Alone Access Funding

 A. Access Funding Says:

"It’s Your Money 

First and foremost, this is your money. If you have won a personal injury case you have suffered undue hardship and you deserve compensation. Why not obtain this compensation in one lump sum rather than over an extended length of time?"

Structured Settlement Watchdog says:

Of course it is your money, that's why you agreed to a structured settlement.  What Access Funding is doing is akin to yelling at you and saying "It's your job!". Would you retire early for a discounted lump sum? Would you give up your steady job for a lower paying job, or unemployment?

B. Access Funding Says

" You Can Receive Cash Now"

When you sell your structured settlement payments, you can receive cash now instead of later. Selling your structured settlement allows you to collect the money due immediately".

Structured Settlement Watchdog Says:

Access Funding's statement is misleading because selling your structured settlement assures you that you will NEVER collect the money due.  What you receive if you sell your structured settlement is only a fraction of what WAS due.  To defend itself, Access Funding needs to back pedal into a discussion of present value.

C.  Access Funding Says

"Better Financial Control

By selling your structured settlement and obtaining a lump sum, you have better control over your finances. This gives you the opportunity to not only invest your settlement but to also spend it as you see fit."

Structured Settlement Watchdog Says:

Would you rather have a steady job that you cannot be fired from or have a lump sum with the anvil of uncertainty weighing over your head  " will it be enough to last"

In fact, 36% of retired investors and 50% of investors who aren't retired are concerned they will run out of their own money so that eventually their main source of retirement income will be Social Security, according to an August 2014 Wells Fargo/Gallup survey of 1,011 investors who have $10,000 or more in savings and investments.  USA Today September 24, 2014

D.  Access Funding Says

"Paying Off Your Debts

A great way to use the lump sum you receive when selling your structured settlement payments is to pay off your debts. We all acquire debt over time, and when you sell your structured settlement, you can settle these debts now rather than letting them accrue interest."

Structured Settlement Watchdog Says:

Avoid a knee-jerk reaction.  Access Funding  is short on details. What is the effective discount rate on the structured settlement factoring transaction compared to the interest rate you are paying on your debt.  The effective discount rate is not the statutory rate which appears on your disclosure. Other cash now pushers advertise that you should sell your structured settlement payment rights to pay off your mortgage, bearing effective discount rates that exceed the mortgage rates.  How are you going to finance your life after the debt is paid or paid-down from the proceeds of the sale?

D.  Access Funding Says

"Having An Emergency Fund

Even if you do not have any major expenses or debts right now, it is possible that you will in the future. By selling your structured settlement, you can set up an emergency fund in case unforeseen financial circumstances arise".

Structured Settlement Watchdog Says:

While it is a good idea to have an emergency fund, sacrificing future income to do so is probably not a good idea.  Try to set aside a piece of each payment fro the emergency fund and build it up over time.  That's what the rest of us working folks do.  A true emergency fund should be kept liquid, which means virtually no interest in 2015.  So what Access Funding implies is to trade your structure that bears a tax-free rate of return of much higher than zero for an account that will make you virtually zero.  If this is your only reason, the only one making  a profit is Access Funding.  

And that's not a "Loofahing matter!"

 

What is a Secondary Market Annuity? Who's "Smoking" The "Ash-Geesh"?

by Structured Settlement Watchdog

 

A video for Ash Brokerage illuminates one way peddlers of structured settlement payment rights to investors in the structured settlement secondary market take advantage of the lack of regulation is misrepresenting structured settlement payment rights as annuities. 

 

Ash Brokerage, the sponsor of Let’s Get Down to Business, a show featuring Steve Savant, syndicated financial columnist and talk show host, tries to do the right thing, at least according to an admission made by a "retail adviser" interviewed in a video posted to the Ash Brokerage YouTube channel June 3, 2014. 

 

Here are the a few unedited excerpts of the transcript of Annuity Straight Talk's Bryan Anderson's interview (Note: transcript typos left in)

 

1. GOOD Admits that "secondary market annuity" IS NOT technically an annuity.

 

"1:34

secondary newtie is it really a min knew it it's not technically an annuity as

1:39

everybody knows an annuity* "   (emphasis added)

 

*that's because it is not an annuity!  So why call it an annuity?

 

Then, it all goes horribly wrong

 

2. BAD Bryan Anderson of Annuity Straight Talk completely misrepresents the financial ratings of  John Hancock, MetLife, Allstate and Prudential in the video

"2:58

companies like met life

2:59

New York Life John Hancock allstate prudential the biggest names in the

3:03

business

3:03

and so we're not talking about a-minus purses B-plus carriers 100 talking about

3:08

AAA rated paper here":

 

3. BAD again ANOTHER misrepresentation by Bryan Anderson as to MetLife

 

"and we're not talking about it being carrier again we're talking about

6:48

something like met life for New York Life

6:51

and in comparison to what those companies would offer a triple A rated

6:54

company"   (emphasis added)

==

Neither MetLife, nor Prudential, nor Allstate, nor John Hancock is "AAA rated".  New York Life is not rated AAA by Standard & Poors.

 

Perhaps someone employed at those companies holds membership in the American Automobile Association (also AAA), but that's about it.

 

4. BAD  Bryan Anderson misrepresents and misinforms at 2:49 that "the losing party in that lawsuit never is relieved if a liability to make those payments"  when in fact a qualified assignment relieves them of that obligation and the assignee is substituted as obligor.

 

Furthermore, when there is settlement there is no "losing party" because a settlement is a compromise.  Here is how a structured settlement is actually created.  How Structured Settlements Work | Structured Settlements Explained (4structures.com). The name "paying party" is more accurate.  A paying party could be a Defendant, or the insurer(s) for a Defendant, or both.

 

The subject video contains a marketing misrepresentation that is unfortunately typical of what one can observe in the under-regulated world of the sale of investments in structured settlement payment rights.  Bryan Anderson represents in the video that he is a "retail (financial )adviser" and uses words such as "due diligence". According to Investopedia due diligence is "an investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.  Aren't financial ratings of the issuers of the underlying paper to the recycled structured settlements material facts?

Who was doing the due diligence on that advertisement ? 

 

Insurance and securities regulators should watch the video and investigate how recycled structured settlement payment rights are being sold.  At this time last year I demonstrated how a Plymouth Massachusetts company misrepresented recycled structured settlements as "Just like a CD".  Others tout guaranty fund protection that may not exist for the asset class.

 

Observations current as of February 23, 2015 at 2:00pm

 

 

 

The Paid Review Scam | How Many Cash Now Pushers Are Involved?

by Structured Settlement Watchdog®

A Romanian blogger states he will write a SEO positive review about your blog/site or product on his Google PR2 gadget related blog for $5.

What is more troubling is that the paid reviewer will "will write 100-150 words review of your website, blog or product on his established 2 year old technology blog. All you need to do is send him a link to your website/blog or product and any talking points you want him to mention.  You can even write your own review if you want and he will publish it for $5.

A Tampa Florida SEO who is known to have performed work for Mt Airy MD based David Springer and Sovereign Funding Group and Vancouver based Genex Capital is seen as endorsing this Fiverr gig, which raises the obvious question of whether or not fake reviews were used to promote the SEO's cash now for structured settlement clients.

We continue to investigate illegitimate paid reviews of settlement purchasers given that this has become more than just a small problem.  

Paid reviews, particular  those that are "scripted" by the company being reviewed,  portray an image to consumers that is rooted in dishonesty and is an unethical business practice that should not be tolerated.

Consider that these paid reviews may be used in an intentionally deceptive manner in an attempt to place the company in a position of trust and in an effort to lower the inhibitions of people with respect to their long term security. 

In September 2012, Stamford CT based Gartner Group estimated that by 2014 as much as 15% of reviews on social networks could be paid for fake reviews. 

Don't structured settlement consumers deserve more?

 

 

 

 

Structured Settlements' Urban Legends of New York "Plaintiff Attorneys have Been Sued..."

by John Darer CLU ChFC MSSC RSP CLTC

The following statement is often cited for marketing purposes, as reasons to have your own structured settlement broker or settlement planner with regard to structured settlement transactions. 

"In Macomber v Travelers Property & Casualty Corp and Lyons v Medical Malpractice Insurance Assoc., plaintiff attorneys have been sued for harm sustained by their clients at the hands of the defense-provided structured settlement broker."

Notwithstanding that it is a good idea to have your own structured settlement broker or settlement planner. the above statement is inaccurate in that in neither of these two cases were the plaintiff attorneys the defendants as the statement represents.  MMIA did not represent Lyons!

In reality in the New York matter of Lyons v Medical Malpractice Insurance Association (MMIA), the plaintiff sued the defendants and their representatives for negligent misrepresentation on the cost of a structure, and the resulting influence on the decision to settle. At issue in the case was who owed a duty of privity to who [Lyons also sued his attorneys for legal malpractice on this case, which was settled in 1987]. The Supreme Court of the State of New York initially granted summary judgment in favor of MMIA, on July 13, 2000. However the New York Appellate Division 2nd Dept. reversed this on September 17, 2001.

§5-1702(e) of the New York General Obligations Law, which was established subsequent to the Lyons case,  requires notice by the defendant or defendant's legal representative  about the plaintiff seeking professional advice relating to the legal, tax and financial implications of the settlement, including any adverse consequences.

Structured Settlement Secondary Market Inconsistencies

by Structured Settlement Watchdog

Matt Bracy, a partner in the Dallas law firm of Nesbitt Vassar & McCown was interviewed by LBN's Mark Wahlstrom in a podcast published on Legal Broadcast Network  July 25, 2013 shortly after the SEC/ FINRA bulletin on investing in Pension and Structured Settlement income streams was published.

Given recent developments, I'd like to point out a few things:

A. At 7:41 through 7:49 of the video  Bracy states  that "the secondary market is not doing anything to destroy the primary market. They all see the benefit of these (structured settlements)". This is a point that Bracy echoed from an April 2011 debate between him and I that was published in May 2011 (see link below)

On February 16, 2014 I conducted an survey of online advertising by members of NASP. The fact is that despite what Matt Bracy represented to Wahlstrom in the video, it is evident that the overwhelming majority of members of the National Association of Settlement Purchasers exhibited at least one active web page where they openly market against structured settlements on their websites, in their advertising to potential sellers.

1. An Fed Bank/ Bank of the Internet  (NASP)

" Don't Wait For Your Next Structured Settlement Payment, Sell It For a Lump Sum Today"  Press Release March 24, 2012.

2. Fairfield Funding (NASP)

Fairfield Funding "Turn Off the IV Drip Feed" So They Can "Amputate Your Leg"    April 25, 2012

3. JG Wentworth  (NASP)

" Don't wait"  February 16, 2014

and also through its other website Structuredsettlementtransfers (dot)com

Download StructuredSettlementTransfers JGWPT 2-16-2014

4. Imperial Structured Settlements  (NASP)

"Don't Wait, Get Paid Now"  February 16, 2014

5. Northeastern Capital Funding  (NASP)

"Why should you have to wait for your money?"      February 16, 2014

6.  Stone Street Capital LLC  (NASP)

Displays the following toll-free numbers on its web site contact page

1877-WHY WAIT  ; 1800 WHY WAIT  1-888-WHY WAIT

7.  Genex Capital  (NASP)

"Why wait for your money? Free it up today with Genex Capital".  February 16, 2014

"Don't Wait For Future Structured Settlement Payments!"

Download CashFuturePayments Genex 2-16-2014

8. Peachtree Settlement Funding (NASP)

"Why Wait" February 16, 2013 on resourcefully.com

Download List of Certain JGW-Peachtree affiliate websites 2-16-2014 employing why wait approach to sellers

9. Client First Funding  (NASP)

"Your structured settlement should give you a better life, not make it more challenging"  TV commercial posted on the Client First website February 16, 2014 -includes image of cartoon couple toasting with champagne.The company has also advocated selling your structured settlement to pay for tuition (Dec 5, 2011) when such cash in hand  would possibly increase the expected family contribution(EFC) and thereby reduce the amount of financial aid available.

{see below for examples of how non-NASP members market against structured settlements using a  "why wait" or "don't wait" approach]

B. At 12:13-12:34 of the video Bracy dismisses the need for extra regulation or licensing as being "more trouble than it's worth" with the back up of a court approval process. Bracy states that a judge reviews each submission and "often stares at the person on the eyes" and knows them be a person living in the community and decides whether or not in best interest",  a "level of scrutiny that doesn't exist anywhere else"

i respect Matt Bracy and we've had an online debate in April 2011, which was published on LBN, but I wonder given what has come out in the last 6 months since he shooting of the 2013 video,  if Bracy could still make the same statement in good faith.

Is this a "turf war", or is it simply time to stop allowing the structured settlement secondary market to skate on what is common place for other financial products  {licensing, rules for soliciting seniors (injury victims) etc]? Frankly the structured settlement secondary market would be stronger and more credible, in my opinion, with the regulation that Matt Bracy has repeatedly dismissed.  In the April 2011 debate Bracy also agreed that certain aspects of solicitation were a problem and that a clear path to information for the consumer was desirable.

Let's be clear, there' nothing dishonorable about offering liquidity through structured settlement transfers,in my opinion. The lack of regulation however, has led to seemingly incorrigible bad advertising practices and manner of solicitiation of both sellers and investors. The legality of some of the practices has even been called into question on occasion.

NOTES

Liberty Settlement Funding  (non NASP)

"...you shouldn’t have to wait years or even decades to ..."  February16,2014

Rescue Capital  (non NASP)

"Don't Wait for your Money Sell your Structured Settlement"  February 16,2014

Integrity Funding

"If you're tired of waiting on small, monthly payments ..."  February 16, 2014

FURTHER READING ON PENDING REGULATION

 Factoring Bill to Cap Discount Rates Introduced in House of Representatives  January 27, 2014

Einstein Structured Settlements | Shameful Misrepresentation in Press Releases

by Structured Settlement Watchdog

Einstein Structured Settlements Makes Audacious and Bogus Claim

"Einstein Structured Settlements was very pleased when William T. Robinson, President of The American Bar Association, spoke at the 2011 Annual Conference of the NSSTA in La Jolla, California. He gave a very moving personal testimony about his 30-years of experience working with companies like Einstein Structured Settlements".  February 17, 2013  PRLog do-it-yourself press release (emphasis ours)

Why the Einstein Structured Settlements claim is bogus

In addressing the NSSTA, WilliamT.Robinson was speaking of structured settlement companies that actually place structured settlements, NOT companies that purchase structured settlement payment rights from structured settlement annuitants or broker the transfer of such structured settlement payment rights. Ask William T. Robinson! That Einstein would insinuate anything different is deplorable.

More concerns about Einstein Structured Settlements

A. On November 19, 2012, a press release concerning Einstein appeared on Yahoo Finance. the press release refers to funding company Einstein Structured Settlements LLC.  The company website cites an address in Los Angeles that was, according to our sources was (from August 2009-February 2010),   a former residence of Ryan Blank (a/k/a Ryan Einstein).  A nationally syndicated December 21, 2012 SBWire do-it-yourself-press release refers to Einstein Structured Settlements as"a Los Angeles, California-based factoring company".

However, as you can see below, a search of the database of the California Secretary of State shows no records for Einstein Structured Settlements

Download Einstein SS LLC California Secretary of State look up 9-2-2013

"Rybo" Blank is a Maryland resident so we also checked the Maryland Secretary of State and there is no record for Einstein Structured Settlement there either.

Download Einstein SS Maryland look up 9-2-2013 no records

So if you are a consumer and choose to do business with Einstein SS, where is your recourse if something goes wrong?  

B.  On November 12, 2012 a do-it-syourself press release was issued entitled "Reforming the Structured Settlement Industry with Einstein's Help" is notable not for its content but for the information at the bottom of the press release

Contact email is listed as ***@cooperspick.com. Ccoperspick.com is an anonymously registered website that does sports gambling

The source is listed as Annuity Calculator Corporation, with a phone number that corresponds to Einstein Structured Settlement's widely posted phone number and an address at 1490 Pratt Street in Baltimore, MD 21208. 21208 is the zip code for Ryan Blank's father, Barry is Plkesville, Maryland. On the other hand,  the correct zip code for 1490 Pratt Street is 21223-3146 if West Pratt, or 21231 if East Pratt, which is at or about the Perkins Homes projects and the City Springs Elementary and Lombard Middle Schools. Can't miss those purple doors!

Note that Annuity Calculator Corporation is not registered to do business in the State of Maryland according to online records.

Download Annuity Calculator Corporation Maryland Secretary of State 9-2-2013 no records was on Einstein SS press release of 11-12-2012

Download 1490 West Pratt Baltimore MD 21223

What is a Do It Yourself Press Release?

Although the Press Releases appear in official looking places like CBS Marketwire and Yahoo Finance, these are created by the folks being promoted by the releases, or their agents. Here is the disclaimer for PRlog which is self-explanatory:

"Disclaimer:   Issuers of the press releases are solely responsible for the content of their press releases. PRLog can't be held liable for the content posted by others"   (emphasis added).

As Rescue Capital aptly put it,  in January, about Einstein Structured Settlements, the structured settlement industry must be protected from individuals or entities who try to misrepresent in order to drive leads and make a quick buck.  

Structured settlement consumers deserve accurate information not fraud and misrepresentation.

• I've already highlghted how Ryan Blank and co have attempted to pass off his alter ego Ryan Einstein as a PhD/LLM from Yale University.
• I've already highlighted how two videos were used by Einstein which presented unlikely (and in one instance impossibly exaggerated) testimonials about a company that seemed to have been in business for about a month.
• I've already highlighted how the company exploits the names and brands of others to generate leads.

Image source: George Tsratsianidis/Dreamstime.com