Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary

J.G. Wentworth Reverts to Old False Advertising Claim

J.G. Wentworth has regressed. For some reason, despite a Chapter 11 filing last month the company claims once again that it is "the undisputed leader in the structured settlement industry".  It also goes on to state " sell some or all of your structured settlement, annuity or life insurance policy for cash now. Download Alexa Internet - J.G. Wentworth 6172009

The reasons why this is egregious false advertising are as follows:

The claim that J.G. Wentworth makes and has previously made is and has been in dispute. Therefore logically, the entire claim must be false.

Upon information and belief J.G. Wentworth is not part of the structured settlement industry. We suspect these denizens of Structured Settlement Aper's Pillory  would like to be!

 

The company purchases rights to deferred payments. With respect to structured settlement payment rights, J.G. Wentworth buys them. J.G. Wentworth funds structured settlement factoring transactions. J.G. Wentworth is a factoring company. For some unexplained reason J.G. Wentworth appears to be ashamed of the word "factoring" even though a structured settlement factoring transaction is an intrinsic part of what it does every day. The word factoring does not even appear in the glossary of key terms on its web site.

Upon information and belief, J.G. Wentworth has no ownership interest in a structured settlement general agency, or the manufacturer of a structured settlement annuity or United States Treasury Bond Trust (the only two "qualified funding assets" for structured settlements that are set forth in the United States Internal Revenue Code).

Given avoidance of the seminal term to what it does in relation to structured settlements (in its online advertising) this author believes that J.G. Wentworth makes the false advertising claim to divert active litigating plaintiffs/consumers who seek legitimate information about structured settlements from websites of those individuals that can provide this information AND place them in structured settlements.

If in fact J.G. Wentworth can prove it is in the structured settlement industry, by supplying proof of its ownership interest in a structured settlement general agency, or the manufacturer of a structured settlement annuity or United States Treasury Bond Trust, this author will gladly provide a written apology and publish it here. Such proof will have to show that such ownership interest existed on or prior to June 17, 2009.

The claim of "cash now" has already been impeached by the recent video testimony of General Counsel of the National Association of Settlement Purchasers (on the Legal Broadcast Network), an association to which J.G. Wentworth belongs.

If That Just Isn't The Turd Calling The Farmer Brown

Next time Deborah Benaim from cash now pusher Imperial Structured Settlements cries the blues  about "seedy and disreputable blogs" and wonders why her firm and industry is vilified think about the following ad which comes up in a Google search today

• Cash Now For Settlements
  Why Wait For Money That Belongs To You? Take Control - Contact Us Now!
  ImperialStructuredSettlements.com

If that just isn't the turd calling the farmer brown!

We've got the proof to support that advertising that implies that cash is delivered for structured settlements now is a fraud so why does Imperial Structured Settlements keep doing it?

It's really simple babe. Stop the "cash now" advertising unless you can provide proof that Imperial Structured Settlements gives structured settlement annuitants the full amount of the transfer money the day they contact Imperial Structured Settlements. I dare you to call Earl Nesbitt and Robin Marc Shapiro (the leadership of your trade association) liars on this issue, in print. I dare ya!

Andres Financial Group, LLC Latest CASH NOW pusher

The Andres Financial Group, LLC a/k/a The Andres Group is the latest CASH NOW pusher. Andres Financial Group/AFG operates a pedestrian looking website with the URL earlycash4u.com/structuredsettlements.  (Early Cash 4 u)

As we've already covered in this blog in previous posts,  "CASH NOW" (in relation to transfer of structrued settlement payment rights) has been proven a fraud with the oral and written words of leaders of the National Association of Settlement Purchasers. Some of these companies claim to give you a cash advance, but if you read the disclaimer it is very limited and not for all your payments. The transfer of your structured settlement payment rights requires Court approval and can take several months, which in the immortal words of Earl Nesbitt means "it is certainly NOT" CASH NOW.

One is Initially suspect about Andres Financial Group, LLC is that the Better Business Bureau Online reliability certificate  (BBB Online) on its is a dead link. This author did a search through the BBB Online resources and show that the company does indeed have a certificate, even if it is not linked.  Moreover, the would be link labeled "disclosure and privacy statement" is not a link. There is no disclosure or privacy statement as of January 25, 2009 at 9am.

Other concerns/questions:

In its FAQ Andres Financial Group, LLC responds to "Do I need an attorney to sell my annuity?" with " Don't worry AFG will take care of that". It is prudent to seek independent advice if you need CASH NOW.

In its FAQ, to the question " what about the companies I have seen on TV?" Andres Financial Group, LC responds " AFG works with all of them, and has "special arrangements" to get you the best possible deals".  Is Andres Financial, LLC implying that JG Wentworth, Peachtree, "123 Lump Dumb", do not treat all consumers equally? Wouldn't the FTC and attorneys general be interested in that!

Andres Financial Group, LLC, established October 13, 2006, is variously listed at 14622 Victory Blvd in Van Nuys, CA, 11940 wellington Street #4 Valley Village, CA 91607 and 7065 Westpointe Blvd, Suite 201 in Orlando, FL.

"So It's Not Exactly Cash Now?" "NO, IT'S CERTAINLY NOT!" Chuckles Director of National Association of Settlement Purchasers

by Structured Settlement Watchdog®

This is an open letter to attorneys for tort victims, advocates for tort victims, attorneys general in the United States and the Federal Trade Commission.

For years tort victims have been subjected to cash now for structured settlement advertising. There has now been an admission from the Executive Director of the National Association of Settlement Purchasers  (NASP), the same organization that lobbies Congress and state legislatures,  that this advertising is not true:

In an interview with Mark Wahlstrom which was nationally broadcast on the Legal Broadcast Network (see first 1:20 minutes of the video below), the Executive Director of the trade association that represents cash now pushers JG Wentworth, Imperial Structured Settlements, Peachtree Settlement Funding, Woodbridge Investments, and others, makes comments which seem to make a very strong case that these companies' cash now advertising is a complete fraud.

"So It's Not Exactly Cash Now?"  Mark Wahlstrom, the interviewer
"NO, IT'S CERTAINLY NOT!  YOU'RE NOT GETTING A MONEY GRAM THE DAY AFTER!"  NASP Executive Director. Earl Nesbitt,  partner in the Dallas law firm of Nesbitt Vassar & McCown LLP

Does anyone need more compelling evidence than the testimony of an officer of the Court (who is the Executive Director of their trade association) that implies that the vultures who advertise "cash now"for structured settlements are lying to consumers?

How is it that we have truth in advertising laws that go unenforced when the most vulnerable of our society is affected? Before you put one of their representatives on your board of directors, elect someone associated with them to political office, or take their money for your general fund, trade association, or your campaign, just reflect that the evidence presented shows that they are lying to the tort victims and consumers who YOU are duty bound to protect. Some try to rationalize the fraud by stating that judges are ultimately looking out for the tort victim. That is however, AFTER the tort victim, your client, your ward, your charge, has been exposed to, teased by, solicited by and had hopes raised by the false advertising. Shouldn't these companies be sanctioned?

Was Alicamousa's "Meligatawny Soup" Enough to Tame Hyenas of The NASP Zoo

In NASP Annual Meeting- 3,  pedantic Patrick Hindert, aping Alicamousa the lion tamer, finally gets to the point. Here are some select observations by NSSTA member Hindert about the responses from the spectacle, which included former Society of Settlement Planners president Jack Meligan of Settlement Professionals Inc.,  NSSTA member Mike Upchurch of Delta Settlement Solutions and Matt Bracy of factoring company Settlement Capital. Neither Bracy nor Meligan are members of NSSTA.

Hindert reports:
Not only do plaintiff attorneys dislike "cash now" advertisements, they are also less likely to recommend structured settlements if they believe their clients will eventually sell their payment rights. They recognize and disapprove of the temptations created by such advertising. Meligan and Upchurch both predicted continued negativity toward the secondary market from the primary market so long as factoring companies continue such advertising.

Comment: 

AGREED

HIndert Reports:

The potential liquidity provided by settlement transfers, however, improves the structured settlement annuity product. Lives change. Unexpected events occur. Even the best personal injury settlement plans need to be reviewed post-settlement and sometimes adjusted. Settlement transfers, which must be reviewed and approved by state judges, are appropriate in some cases.

Comments:

1. Transfers are appropriate in some cases.
2. Liquidity that comes at an exorbitant effective discount rate is no bargain. 
3. A factoring transaction in the first two years of a structured settlement is, from a loss of invested capital standpoint, on par with recent stock market losses for a product that is supposed to carry little to no risk.
   
4. Either the factoring companies come up with competitive discount rates OR the annuity issuers should explore providing the liquidity themselves to their own customers at a very modest discount. The latter would require little to no marketing expense and offer real competition to the factoring companies. Moreover annuitants would not be harassed by factoring company representatives.
   

Hindert states:
Settlement planners have a choice whether or not to seek compensation for post-settlement transfer advice to existing structured settlement recipients.  The decision may depend upon whether the settlement planner was the agent of record for the original structured settlement annuity purchase.  In most states, compensation options for settlement planners include fees for serving as "independent financial advisors" in settlement transfer cases.

Comments

1. Such fees have been proven to take money out of the mouths of tort victims. The amount of time spent providing such advice is minimal.
2. The notion that not being the agent of record on the original structure justifies a fee simply means that not all plaintiffs and tort victims are treated equally by such settlement planners who engage in such practices. Does YOUR settlement planner engage in such practices?
   
3. In the state of Michigan the factoring industry successfully lobbied to have the "independent financial advice" requirement eliminated on the basis that it adds to the cost of the transfer.
4. The identity of anyone taking such fees or kick backs should be required to be disclosed up front and be itemized in the financial disclosures submitted as part of the court approval process.
   

Hindert reports:
Another attorney criticized the primary market generally for its continuing (and in many cases undeserved) vilification of the secondary market. Still another stated that only the criticisms and bad results get publicized - while the thousands of successful settlement transfers and satisfied secondary market customers are ignored.

Comments:

This author has been blogging about the business practices about the factoring industry since November 2005 ad specifically about the "cash now fraud" for more than a year and a half. The practice has been endemic and some of the worst offenders have been the largest members of NASP.

Whatever good the factoring industry purportedly does is drowned by the negative energy of the exorbitant effective discount rates of some and the unscrupulous advertising and solicitation practices of others. For example, when former Peachtree Vice President Deborah Benaim boasted of all that Peachtree was purportedly doing for Katrina victims who could overlook the company's reputation for non competitive discount rates?

How can NASP be considered a credible organization when there is such inertia to professional licensure and following the truth in advertising standard?

Hindert reports:

Matt Bracy of Settlement Capital said that as one result of the tight capital markets, he predicted higher discount rates for settlement transfers in the immediate future.

Comments:

More liquidity should be built into settlement plans at the outset so that the need for such transactions is minimized.

Hindert reports:

"Both Meligan and Upchurch re-emphasized the importance, from the primary market perspective for:

• Secondary market companies to stop non-professional ("cash now") advertising.  Note: one factoring company executive stated privately that he plans to review his company's advertising based upon comments by Meligan and Upchurch.
• Plaintiff attorneys and injury victims to be represented by settlement planners including  representation for secondary market issues and options".

Comments:

1. Plaintiff attorneys and tort victims need to be represented by competent financial professionals who are familiar with the subject matter. Despite being a settlement planner this author believes such individuals do not have to exclusively be settlement planners. They may also be Certified Financial Planners, Chartered Financial Consultants, accountants, lawyers.
2. The notion that factoring is part of settlement planning is a 2005 era fallacy put forth by certain members of the Society of Settlement Planners and an "honorary member" who pays kick backs to some of them. The fact remains that factoring IS simply a liquidity option available to tort victims holding structured settlement payment rights. Placing as much emphasis on it (ostensibly to sell a bigger annuity to someone who does not want one or does not want as much of one) as Hindert and others imply, is malpractice, in my opinion. Planning to factor is simply a losing finanical strategy.
   
3. Why hasn't NASP taken a leadership role in stamping out fraudulent "cash now" advertising? On March 12, 2008 in his report of the Society of Settlement Planners 2008  Education Meeting, Hindert reported

• "The SSP secondary market discussion offered multiple informative perspectives on this controversial topic. It also included questions by SSP members to (Earl) Nesbitt for NASP members focused upon:
  • Alleged predatory advertising by factoring companies;
  • Alleged improper use of the term "structured settlement" by factoring companies;

• Nesbitt promised to communicate SSP's concerns to NASP members". Now 7 months later, how has Earl Nesbitt followed up on his promise?