Structured Settlement Sellers Beware
In yet another sign the structured settlement purchasing profession is in the regulatory cross hairs, the Consumer Financial Protection Bureau, CFPB, recently filed a complaint and action against settlement purchasing giant JG Wentworth. The allegation as described in the complaint is that Wentworth’s method of solicitation and purchase of structured settlement cash flows is deceptive and harmful to consumers.
JG Wentworth has fired back with their own defense that the CFPB is outside it’s jurisdiction, and that much like it’s prior attack on for profit colleges, the CFPB will lose this case as well. The Settlement Channel and The Legal Broadcast Network will continue to monitor the case and report as events unfold. While Skimming through the news I came across this article, it doesn’t say much. Unless you understand the concept and the ramifications of it on the sellers of structured settlements.
Does it mean that JGW really is Deceptive? Does it mean you should not trust JGW and go with a smaller purchaser?
Its not that simple what it does mean that if you are going to sell a portion of your structured settlement you should be cautious.Going to a smaller company does not guarantee you the best results, just like going to JGW guarantees you the best results.
Judges are going to see this little article as well, and that means if you are not full understanding the terms of your contract the judge will be unlikely to sign off on it.
But, and its a big but if you have an independent professional adviser working with you on the transaction, the whole idea of the purchaser taking advantage of the seller goes out the window. why you ask? A Structured Settlement Attorney acting as an Independent Professional Advisor, is supposed to make sure that you understand completely the ramifications of the transfer. Also in our offices we make sure to be prepared for all the judges possible concerns, like where is the money going to go, what happened to the money before, how will you pay bills without this money, and most importantly is this a fair market price for the payment stream. So if you have a IPA, it doesn’t matter if you are going with JGW, or who ever. You will be able to rest assured that you are not being taken advantage of.
Also if you live in California The service is FREE to you.
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