The Spencer v Hartford class action settlement apparently isn't the only legacy of The Hartford in today's structured settlements industry.
You see, as of October 15, 2010 , 5 or more structured settlement companies cannot let go of information from a series of brochures comparing structured settlements to alternative investments, produced and provided by The Hartford to its appointed brokers beginning in 1999.
In a comparison of structured settlements vs bank certificates of deposit (CDs), the following companies STILL state, incorrectly, that the limit of Federal Deposit Insurance Protection ("FDIC Insurance") is $100,000
- Structured Annuities, Inc. of Fort Worth Texas
- Dakota Structured Settlements of Rapid City, South Dakota
- The James Street Group of Austin, Texas
- Legacy Settlements Group of Kansas City, Missouri
- Millennium Settlement Consulting of Tallahassee Florida
This isn't the first time I have mentioned this. (See "Two Texas Structured Settlement Companies Can't Get Lard Unless They Boil The Hog" December 6, 2009) What is it about what is now misinformation that leaves these folks attached to it like a thumb sucking infant holding on to their "woobie"?
On October 1, 2008, FDIC limits were temporarily increased to $250,000 in response to an increasing threat of bank runs during the ensuing financial crisis. The temporary period for the lmit increase was due to expire December 31, 2009, but was later extended through 2013. Subsequently, the increase was made PERMANENT on July 21, 2010 with the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (" Dodd-Frank"; see HR 4173 §335)
Two other firms (as of October 15, 2010). use modified versions of the information originally supplied by The Hartford. While both firms correctly state that the limit is $250,000 per account owner, Huver Associates incorrectly states that the limit expires December 31, 2013. That was made moot by "Dodd-Frank".
The Hartford ceased writing structured settlements in 2008. In early 2009 this author made Hartford aware that some of its agents were using the 1999 brochures or modified version thereof (with the above cited and other inaccuracies) and some were attributing it to The Hartford. Our then contact at The Hartford indicated that The Hartford was going to do something about it.
In the opinion of the structurd settlement watchdog, it is not right for the structured settlement experts and settlement planners to (a) use misleading and/or inaccurate information in comparisons, to promote structured settlements; and (2) to blame it on what is figuratively "the empty chair", The Hartford.
The structured settlement watchdog would like to help by bringing in an expert with 27 years of "expertise" on how to part with your "woobie"
Sage advice on giving up your Hartford "woobie"?
The Video below explains how the Federal Deposit Insurnce Corporation works. Source: FDIC