This is an open letter to all of the regulators in the State of Connecticut whether you are part of the Connecticut State Senate or House or a member of the United States Congress and any local town and municipal governing bodies. This letter is further intended to reach the Commissioner of Insurance Susan F. Cogswell, The CT Attorney General Richard Blumenthal, and any and all Consumer Protection Agencies as well as any Federal and State agencies regulating investments. If you are a reader of this letter and personally know any of our regulators in or for the State of Connecticut I encourage you to share this with them.
A website located at www.americansettlementfund.com is hurting the citizens of the State of Connecticut, your constituents, and you should do something about it. The WHOIS registration shows that the website domain name is resistered to JGW Funding. JGW stands for JG Wentworth the nationally known Philadelphia area company which is engaged in what is defined under the Internal Revenue Code as "structured settlement factoring transactions". Who hasn’t seen the ubiquitous JG Wentworth "cash now" ads?. The company through the aforementioned website and others is also engaged in a pattern and practice of advertising which at best can be described as confusing to consumers.
One page of the aforementioned website displays insurance and even investment terms such as the company is specializing in: annuity, company, payout, broker, viable, loan, sell, payments, companies, sell, insurance, selling, sale, sell insurance, selling, consumer info, investments, what is, define, shopping, quotes, certified consultant which when typed into your Yahoo search engine alone, or in combination, would lead a reasonable person to believe that this company is in a business (that it isn’t in) or is authorized to perform a service for citizens of the State of Connecticut that it isn’t licensed for. Connecicut consumers are hurt, licensed resident insurance producers are hurt and non-resident iinsurance producers are hurt.
Who hasn’t seen or read a tabloid news story about a physician who later turned out not to be one? The company, through the aforementioned website, also inaccurately advertises that it is a structured settlement company. In other advertising JG Wentworth claims leadership in the structured settlement industry, a claim which is also untrue. JG Wentworth, through the aforementioned website states claims that "American Settlement Funds is one of the country’s most experienced firms dedicated to the evaluation, design, negotiation, and sale of structured settlements. They solicit the consumer to fill out their online form "and a certified structured settlement consultant will contact you within 24 hours to discuss your specific needs and get you the results you deserve."
Certified Structured Settlement Consultant is a professional designation of the National Structured Settlement Trade Association, a professional trade association of which neither American Settlement Fund, JG Wentworth or JGW Funding are members. By wrongfully associating itself with this professional designation of Certified Structured Settlement Consultant, the actions of JGW, by way of the aformentioned website, diminish the value of that designation, bringing harm to the credibility of both the National Structured Settlement Trade Association and its members who have earned and hold that designation. Approximately 6 licensed resident insurance producers and taxpayers in the State of Connecticut hold the CSSC (in addition to others natiionally). Many more licensed non resident insurance producers are also affected with respect to this aspect.
The aforementioned website also has a webpage which refers to "structured settlement investment"? and "structured settlement investment funds" and solicits consumers to contact them for "investment" advice. I see no identification of a broker dealer and other securities related requirements that would be required by Federal and state laws. How is this possible?
At the very best the behavior confuses consumers and is an annoyance. At the very worst it is blatant unfair trade practice and violates the law. Furthermore, this pattern of behavior and practice and its effect on consumers and licensed resident and non resident agents is not confined to the State of Connecticut. Indeed, through the aggressive use of meta tags and hard coding on its web pages the website has been programmed to come up under similar searches in this and other states.
The website displays insurance terms which come up when an Internet user does a Yahoo search for the following key word combinations (ranks in parentheses as of today at 530pm):
CT structured settlements quotes (#3)
CT structured annuity quotes (#1)
CT structured settlements investment (#5)
CT certified structured settlement consultant (#4)
CT structured settlements quotes (#3)
A search of the CT Insurance Department on line records for American Settlement Fund, JG Wentworth, J.G. Wentworth, JGW Funding shows no evidence of a valid insurance license.
Verify Insurance licensee with CT State Insurance Department
Listed below are links to inquiries with the website of CT Secretary of State, Susan Bysiewicz which includes the ability to search for companies registered to do business in the State of Connecticut. I searched for American Settlement Fund, JG Wentworth, J.G. Wentworth, JGW Funding and the CONCORD search shows no evidence that these companies have authority to do business in the State of Connecticut. See for yourself by clicking the following links or visiting the CONCORD search at the CT Secretary of State website.
Download asf_inquiry_5192006_concord.pdf
Download j.G Wentworth CONCORD inquiry 5192006.pdf
Download jg_wentworth_iconcord_inquiry_5192006.pdf
Download jgw_funding_concord_inquiry_5192006.pdf
Despite Connecticut being known as one of the toughest states for factoring, the Connecticut Structured Settlement Protection Act is simply not doing enough to protect our citizens. It is inconceivable that our beloved state can require a license of a viatical insurance broker yet not require one of a company that engages in structured settlement factoring transactions. This company, and other unlicensed companies are making a mockery of our state government and hurting our citizens by freely advertising things that are just not true for the almighty dollar. One solution would be to require these entities to register with the state, pay a licensing fee to the insurance or banking departments to oversee them and subject them to enforceable laws with respect to advertising similar to what our state’s resident and non-resident insurance producers, bankers or investment people are subject to you will better protect our citizens from the predation that exists in the business.
Governor Jodi Rell? Are you or is someone in your office reading?
Attorney General Richard Blumenthal? Love your work! Are you or is someone in your office reading?
Senator Chris Dodd? Are you or is someone in your office reading?
Senator Christopher Shays? Are you or is someone in your office reading?
Senator Joseph Lieberman? Are you or is someone in your office reading?
Secretary of State Susan Bysiewicz? Are you or is someone in your office reading?
Mayor and Gubernatorial Candidate and fellow Stamford, CT resident Dannel Malloy? Are you or is someone in your office reading?
CT Commissioner of Insurance, Susan F. Cogswell? Are you or is someone in your Department of Consumer Affairs reading?
Is the Hartford Courant reading?
Is the Stamford Advocate editor reading?
Is the President of the CT State Trial Lawyers reading?
Are fellow Connecticut Bloggers reading?
Our regulators must do something to enforce existing laws and to create new ones to protect our consumers and to assure that Connecticut based businesses which pay taxes (and whose members and employees are also CT voters) are not unwittingly subject to unfair trade practices from outside forces due to lack of enforcement or certain gaps in the law that need to filled.
Through research I have also identified other factoring companies "doing business in CT" whose practices are similar to what is described above. I am happy to share these with you in due course.
If you are a reader of this post and you live in a state other than the State of Connecticut you may wish to check out this company and others to see if you come up with similar findings.
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