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

"Fast Cash is Bunch of BS" Says Waiting 123 Lump Sum Customer

by Structured Settlement Watchdog®

Reader Christina Storey writes

"My husband is currently waiting funding from 123 Lump Sum. We started this process over a year ago. It finally went to court on Sept.2009. We got the approval and now almost 2 months later still not funded yet. Yeah their slogan fast cash yeah okay that's a bunch of bs. Anyone going into this should know it's not gonna be that way and they are falsley (sic) advertising it on their site. I think we have been more then patient with these people. But we just keep getting fed more bs as to why we are not being funded. I'm waiting for them to just say sorry we can't do it we're bankrupt or something. I'm so confused"

123 Lump Sum is a trading name of Structured Asset Funding, LLC  and handles the funding and servicing.

This is the 4th case this year that we've heard of where this company has dragged out the funding of a structured settlement factoring transaction.

I'm not making this stuff up.  Sellers beware! Make sure you have considered and exhausted all other alternatives.

Have you experienced a long delay from a company that has promised you cash now? Tell us your story! Help yourself and help others!

Any other customers of Structured Asset Funding, 123 Lump Sum who have experienced similar delays are encouraged to contact this author so that we may publish your story. The viral power of the Internet will put pressure on the "cash now" pushers or settlement payment purchasers to deliver on their promises, to stop making claims that they cannot deliver. Your stories will be compiled for discussions with federal and state officials in the hope of improving the experience for others.

Structured Settlement Securitizations Hype and Questionable Awarenss about Extent of Settlement Factoring

by John Darer® CLU ChFC MSSC RSP

Financial reporters who fail to research their subject sure make easy pickings! To wit, the well deserved critique and ultimate "IxNay" of DealFlow Media Structured Settlements Report. Enter Markets Media, LLC.

This is what Markets Media's Steve Marlin says:

Since 1998, aggregate term issuance of structured settlement securitizations has surpassed $2.4 billion, and the sector continues to grow as more market players take greater notice of off-the-run assets. “These transactions benefit from uncomplicated deal structures, stable assets, and a relatively easy underwriting process,” said Dolan.

With more than $80 billion face value of structured settlements in existence, this sector of the securitization market has even more room to grow".

This about sums up Steve Marlin's research

To be more specific...

A. Definition of Face Value

The nominal, or stated, amount of security. The face value of a bond is the amount the issuer agrees to pay upon maturity. Reporters who don't do their research confuse face value with present value.

B. The "Sound of Philadelphia"  (well..near by)

From the May 7, 2009 a Bankruptcy Code section 1125 Disclosure Statement was issued as part of the Prepetition Solicitation of Votes With respect to the Prepackaged Plan of Reorganization of JGW Holdco, LLC, J.G. Wentworth, LLC and J.G. Wentworth, Inc. JG Wentworth Bankruptcy disclosure submitted under penalty of perjury:
 

1. Cites NSSTA statistics of over $100B in premiums for structured settlements issued in the United States from 1979 through 2007.
2. States that JG Wentworth has completed 51,000 guaranteed and life contingent structured settlement transactions since 1995,  with aggregate payment streams (as opposed to premiums) of approximately $3.9B.

C. The IRS Factoring Audit Technique Guide

"The following background information is excerpted (with permission) from an article that appeared in the ABA Judges’ Journal, Spring 2005 Vol. 44, No. 2 pp. 19-31, “Transfers of Structured Settlement Payment Rights: What Judges Should Know About Structured Settlement Protection Acts”, authored by Daniel W. Hindert and Craig H. Ulman. Structured settlements have enjoyed widespread acceptance and have become an established part of our legal landscape over the past twenty-five years. More than $6 billion is now paid each year to fund new structured settlements in the United States, and an estimated $100 billion or more has been paid in the aggregate TO FUND structured settlements that are in force today".

The structured settlement factoring market only seems big because of the ubiquitous universally annoying advertising.