JG Wentworth is getting squeezed by alert judges who are telling them to come back "when the effective discount rate for a proposed structured settlement factoring transaction is less than 12-15%, according to confidential sources . This has apparently led to the concomitant squeeze on lawyers representing JG Wentworth in hearings on structured settlement factoring transactions who have to decide whether the opportunity makes good business sense for them.
Structured Settlements 4 Real further understands that JG Wentworth has made a foray into the pre-settlement funding business where, after evaluating the plaintiff's case, it will advance sums of money to plaintiffs in dire need while a lawsuit is pending. JG Wentworth competitor, Peachtree, is also involved in the presettlement funding business as are regulars such as Magnolia Funding, Law Cash, Plaintiff Support Services, Oasis and others. As more judges are educated by news of Peachtree's outrageous Chambers case (41.73%) and others, effective discount rates should come down. BUT the squeeze may foment a shift of factoring companies into the more profitable presettlement funding area.
Attorneys, structured settlement professionals, financial advisers and settlement planners should be wary of the obvious Trojan Horse.
Clearly JG Wentworth wants credibility from the structured settlement industry to support its outrageous and false claims of leadership in it. JG Wentworth may indeed be a leader but NOT in the structured settlement industry. J.G. Wentworth is a purchaser of structured settelment payment rights that annuitantsw ant to sell. There is a big difference! One of the methods commonly used is to suggest that a structured settlement broker appear in its magazine called Present Value. One of our sources told me that he or his office was contacted more than 5 times for an appearance! Fortunately he had an understanding of the big picture and the willpower that seems to be lacking in a few others.
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