by Structured Settlement Watchdog®
Whether CBC Settlement Funding uses affiliated marketers associated with heavy spam links, or rubbish-writing-strewn high key word SEO websites like Annuity(dot).org and structuredsettlements(dot)com, it is becoming clear that CBC Settlement Funding doesn't care about the dissemination of accurate structured settlement information to consumers. What a pity! And another member of NASP, "what a surprise!"
Move over Einstein Structured Settlements, there's a new exhibit in the Social Media Road Kill Museum. CBC Settlement Funding sponsors the Social Media Road Kill and benefits from it, so its only fitting that they be called out for the rubbish that is generated on their behalf to generate new leads and profit from information that is of little use to consumers.
Today Lauren Terfehr tweets "Got a #structuredsettlement but need money now? Get your piece of the pie!" Rough translation "Sell your structured settlement to CBC Settlement Funding and get a slice of your own flesh". Selling your structured settlement is not delicious like a warm apple pie with a dollop of ice cream, with the exception of possible feelings of guilt replacing your pangs of hunger.
The link from the tweet leads to another error ridden post by Catherine J. Byerly on behalf of CBC Settlement Funding
1. Catherine Byerly attempts to justify the selling of structured settlement payments by citing the behavior of Powerball winners who elected to receive a lump sum instead of payments.
"Many people with pressing financial needs agree that for them, it is worth it to take a lump sum payment up front even though it could mean collecting less money overall for the life of the settlement. Three of the last one hundred and two Powerball winners elected to receive the lump sum in lieu of payments".
It's ridiculous. The pressing needs of Powerball winners cannot be compared to people who have pressing needs for shelter, medical bills or mounting debt. Furthermore selling your structured settlement is in no way like winning Powerball.
2. In explaining present value, Byerly states that the "total of your payments minus discount rate equals the cash you get now". Let's assume that the total of the structured settlement payments is $150,000 and the discount rate used by CBC Settlement Funding is the industry average that NASP President Patricia Laborde claimed in a recent video of 10.5%. By Byerly's math $150,000 minus 10.5 equals $149,989.50; or is it $150,000 minus 10.5% of $150,000 ($15,750) equals $134,250; or is it something else. If you guessed the latter you would be right. This is really an embarrassment for CBC Settlement Funding in an industry where present value is fundamental concept. For the record...
Present Value of Annuity Formula
3. Byerly suggests that investing in a start up (a highly risky investment), is a pro of selling your structured settlement (a conservative investment). Said another way, don't quit your day job.
4. In a section called Understanding The Terms, Byerly states that "During this process, a company that specializes in early settlements will assist you in filing the necessary paperwork". There is no such thing as an "early settlement". When you cash out your structured settlement you are selling structured settlement payment rights. It is not a settlement, it is the transfer or sale of an asset.
5. In discussing inflation Byerly misleads consumers by comparing the cost of a car across a 20 year time frame from 1985 to 2015 which incorporates periods of high inflation at the beginning and little inflation at the end, with a 9 year time frame. Mismatching time frames was either intentional to make the comparison seem more dramatic, or simply ignorant.
6. Still misrepresents Chronovo and AIG as a Structured Settlement Issuers. 2 months after "looking into the issue" Lauren Terfehr is busy tweeting cherry pies instead of correcting inaccuracy that deos not help consumers.
7. Byerly misrepresents the impact structured settlements have on ability to get certain forms of aid.
8. Byerly misrepresents that a structured settlement is awarded by a court, when a structured settlement is a negotiated compromise.
9. Byerly, misrepresents that "The American court system issues nearly $6 billion in new structured settlements each year, according to the National Structured Settlements Trade Association". The American court system is not a structured settlement issuer. The NSSTA did not say what Catherine Byerly said it did.
10. Byerly states "The plaintiff, in other words the case winner, simply receives a scheduled series of payments for a set amount of time". Sometimes the plaintiff loses. For example if the case goes to trial and there is a defense verdict. A settlement is a negotiated compromise which means there is no winner or loser.
11. Byerly misrepresents that an annuity is managed by a life insurance company. An annuity is a contract issued by a life insurance company that is backed by the full faith and credit of of the insurance company.