Structured Settlement Company J.G. Wentworth: Too aggressive after Chapter 11?
John Darer has been keeping a close eye on J.G. Wentworth, especially in light of the structured settlement company’s Chapter 11 filing last year. Darer’s StructuredSettlements4Real blog watches the structured settlement and annuity buying industry, offering tips to consumers and reporting from his vantage point as a Settlement Planner and Consultant. Earlier this month he reported on a case that should serve as a warning to anyone doing business with the struggling buyers of structured settlements.
“Kathryn survived a head on car accident with a drunk driver, Kates head injuries were severe,” the complaint, posed at http://www.compaintsboard.com, states. “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 the physical and mental diminishment caused by a head injury in a 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.”
Those that follow industry news about structured settlement companies know that this isn’t the first time the company has aggressively and without conscience compromised industry scruples. “As seen on TV, get cash now, J G Wentworth, 321 Henderson Rec., took my child’s fathers will, with NO court approved or effective agreements between them!” One disgruntled consumer writes on ripoffreport.com “…these people are thieves, and structured companies are doing shoddy work to comply with them with no court approval. Won’t some one stop them?”
Not all structured settlement companies treat consumers with such callous disregard. At RSL Funding, LLC, a talent pool of CPAs help people gain liquidity from long-term insurance-based payouts. Just listen to P. Camacho, a satisfied RSL Funding client: “…ever since my first transaction (RSL Funding agent) Rudy Ramirez has been very helpful in answering questions and being very prompt in getting me the money as soon as possible. This is my fourth transaction with Rudy and once again he’s being very helpful and I would like to thank RSL Funding for all your help in making my transactions quick and easy.”