J.G. Wentworth "Maine Lines" Structured Settlement Payments From Woman of Diminshed Capacity. Where Was The Judge?

by Structured Settlement Watchdog®

An April 29, 2010 complaint against JG Wentworth posted on complaintsboard.com, a South Addison Maine woman describes the horror show that a woman with closed head injury allegedly suffered at the hands of JG Wentworth in a chilling warning to state and federal governmental regulators.

According to the complaint "Kathryn survived a head on car accident with a drunk driver, Kate's head injuries were severe. After a lot of thought and planning, a structured settlement was set up for Kathryn to have a lifetime income starting in May 1987. Kate has been receiving payments monthly for income. We have just discovered that JG Wentworth convinced Kate in August 1996 to take part of her settlement out of Liberty Mutual. This decision has reduced her income leaving her only able to afford a studio apartment, no transportation and with very little spending money. JG Wentworth with its exorbitant interest rates. has received $416,000.00 from her repayments.for the $152,300.00 which Kate took out of her life income.

Due to her physical and mental diminishment (sic) caused by a head injury in the car accident in 1980( in which her mother was killed, ) Kate is not competent to reorganize the carefully thought out dispensation from Liberty Mutual. She is in no way competent to make major decisions regarding the dispensation of that money.

She was a victim and led astray. Kate does not have employment and she may never be employed because of her deficiencies. We want her to feel capable and responsible. That is the way we want her to feel, but she is not able to be responsible for making any life changing decisions such as the contract that JG Wentworth made with her. She told us that JG Wentworth called her once or twice a day to entice her to withdraw in lump sums, her lifetime income. She was coerced give in and agree to take the money. All to late, we now have heard that those repeated phone calls began each time that a contract with JG Wentworth was completed. They convinced her to take out another loan, at least three or more times...She will not be out from under JG Wentworth until 2013".

Comments/Questions

1. The first transaction was prior to the enactment of the Maine Structured Settlement Protection Act 24-A M.R.S. §§ 2241 et seq. (SB 680) Enacted 5/20/1999 Effective 6/1/1999.
2. If there was a judge reviewing subsequent transaction, (at least for the factoring transactions after June 1, 1999) what was he or she thinking in approving the transfer?
3. What level of due diligence did J.G Wentworth perform PRIOR to starting the process to provide the liquidity? 
4. What, if anything. is their legal obligation to do so?
5. What standards do J.G. Wentworth (and other settlement purchasers)  follow when dealing with potential customers with impaired decision making ability?
6. If you see a J.G. Wentworth ad on TV, by all means have a good laugh BUT try to heed the words in this Guns N Roses refrain...

"Said woman take it slow
It'll work itself out fine
All we need is just a little patience
Said sugar make it slow
And we'll come together fine
All we need is just a little patience
(inhale) Patience...
Ooh, oh, yeah" 

While today, structured settlement factoring transaction require judicial approval you must remember that once you finalize one of these deals there's really no way to turn back.

J.G. Wentworth is invited to comment.

Post script: No comment from JG Wentworth