by Structured Settlement Watchdog
J.G. Wentworth has sued one of its clients, claiming she defaulted on a payment due to them in December 1, 2016 in the amount of $130,000.00.
Per this purchase agreement, Singleton sold to JG Wentworth the right to receive 15 monthly payments of $2,500.00 each, starting Dec. 15, 1996 and ending on Feb. 15, 1998; a $20,000.00 portion of a $37,500.00 due on June 15, 1998; one lump sum payment of $40,000.00 due on Dec. 1, 2001; one lump sum payment of $45,000.00 due on Dec. 1, 2004; one lump sum payment of $50,000.00 due on Dec. 1, 2007; one lump sum payment of $62,500.00 due on Dec. 1, 2010; one lump sum payment of $85,000.00 due on Dec. 1, 2013 and, a $130,00.00 payment due on Dec. 1, 2016.
Singleton became entitled to the payments after being named the payee of a structured settlement annuity contracts issued by Omaha Life Insurance Company. Singleton agreed to not otherwise interfere with Wentworth’s right to receive and collect the payments, or make any changes in instructions regarding their distribution.
The only payment in default is the December 1, 2016 payment of $130,000 of the total $180,000 she received from Omaha Life Insurance Company.
“Singleton is in default under the purchase agreement by virtue of the fact that she has failed to ensure Wentworth received the payments it purchased, and has wrongfully retained the $130,000.00 portion of the $180,000.00 lump sum payment due on Dec. 1, 2016”
The plaintiff seeks damages of the $130,000, plus interest and costs of suit. Should be a win for JG Wentworth.
The JGW v Singleton lawsuit provides insights into the history of structured settlement factoring and the risks involved in investing in structured settlement receivables
At that time, buyers had to depend on the seller's integrity to forward payments or update the mailing address for payments. Since the VTTRA 2001 was enacted into law by George W. Bush in January 2002, a judge is required to determine whether the transaction serves the best interests of the seller and any relevant dependents. Additionally, a "qualified order" must be issued, which, assuming the participants act with integrity, should offer reassurance to all parties involved.
Unfortunately the structured settlement secondary market has "barfed up" enough bile over the intervening years to fill cesspools from coast to coast.
Reference: Penn Record February 15, 2017