Settlement Quotes has compiled a list of every company that purchases structured settlement payment rights. Throughout the next 3 weeks we will be writing an article on every company in the industry, providing facts about each company including their Better Business Bureau record, number of years in business, number of employees, and many other pertinent information.
What is the servicing of structured settlement payments?
The servicing of structured settlement payments occurs when an annuitant enters into a structured settlement factoring agreement in which the annuitant chooses to split one or more payments and the factoring company becomes the payee of the entire payment. Once the factoring company receives the entire payment from the insurance company, they keep their agreed upon amount and pay the annuitant their portion.
After receiving approval by a Delaware judge, JG Wentworth received $100 million from their parent, private equity firm JLL Partners of New York. This boost significantly helps JG Wentworth continue to operate their ongoing business.
Now that JG Wentworth’s bankruptcy plan was accepted, they have zero debt and enough cash to operate for the foreseeable future.
If you have any questions about this matter, please feel free to contact us with any questions.
Today, JG Wentworth announced that three of its non-operating parent holding company level affiliates – JGW Holdco, LLC, J.G. Wentworth LLC, and J.G. Wentworth, Inc., — have filed a voluntary reorganization plan under Chapter 11 of the U. S. Bankruptcy Code in the U. S. Bankruptcy Court for the District of Delaware.
Settlement Quotes has received several inquiries regarding structured settlement factoring companies delaying their obligation to pay annuitants.
Here are a few of the blog comments that Settlement Quotes has received in the past few months:
Stone Street Capital, a structured settlement factoring company located out of Bethesda Maryland recently created a blog to “facilitate open communication.” There has been much controversy over Stone Street’s advertising practices of late and this author hopes that Stone Street would be willing to communicate to both the primary and secondary markets on why they continue to use such terms as “cash now” in their advertising.
Settlement Quotes strives to make our blog entries current. Yesterday this author published an article “JG Wentworth Loses Satisfactory Rating From the BBB,” in the article this author discusses how JG Wentworth has had their satisfactory rating removed from their Better Business Bureau profile.
Within a period of 12 hours, JG Wentworth’s rating went from unsatisfactory to satisfactory. J.G Wentworth’s BBB profile was under review for a three week period throughout September. Once their profile came back online on October 3rd, 2008 their profile was stripped of the satisfactory rating.
As of October 5th, 2008, JG Wentworth has officially been stripped of it’s satisfactory rating from the Better Business Bureau.
“To have a “satisfactory BBB Rating” with BBB, a business must be in business for at least 12 months, properly and promptly address matters referred to it by BBB, and be free from an unusual volume or pattern of complaints and law enforcement action involving its marketplace conduct. In addition, BBB must have a clear understanding of the business and no concerns about its industry.”
DealFlow Media (DFM) wrote in their recent structured settlement wire that 321 Henderson, a J.G. Wentworth affiliate was denied a transaction in New York this past week. In their report DFM stated that a 90% discount was applied to the case. The report did not specify the exact payments that were being sold, but the article did provide a few numbers that we can run some calculations with.
It was reported that JG Wentworth was purchasing $102,948.57 of future payments for a net amount of $10,500. DFM states that this transaction has a rate of 10.2% which is false. Structured settlement factoring transactions are priced using discount rates. The rate of this transaction was 8.78%, which is actually a good rate. Even though this transaction had a good discount rate, the factoring transaction would not be in the best interest of the annuitant due to the reasoning for the transaction.
Settlement Quotes would have recommended that this individual try other resources to purchase a vehicle. Cashing out a structured settlement to purchase a vehicle is most of the time not in the best interest of an individual, especially with the rising costs of energy.
In the future, DealFlow Media needs to use correct verbiage when reporting structured settlement factoring cases. Settlement Quotes has built several calculators that are able to calculate the discount rate of all types of factoring transactions. JG Wentworth or any other company would not have tried to factor a transaction with a discount rate of 90%, which would have left the annuitant with a penny.
Other DealFlow Media Inaccuracies.
Here is a snippet of J.G Wentworth’s recent press release:
It is important that companies start to recognize the education that consumers need in order to improve the structured settlement factoring industry. It is good to see that JGW has taken a step in the right direction. Other companies need to step forward and realize that large profit margins are not the way into the future.
This press release points out that tort victims need to create competition between factoring companies in order to receive the best deal.