by Structured Settlement Watchdog
In 2018, Blackstone Group subsidiary DRB Capital, introduced its "Stop Structured Settlement Fraud" Bounty Program, and laid out a series of alleged illegalities regularly occurring in the structured settlement secondary market.
Now RSL Funding jumps into the pool with a more targeted and highly aggressive approach, taking on the 800 lb gorilla, JG Wentworth, with a home page that features a smug red neck in a ten gallon Viking hat with the sales pitch that " you've likely been ripped off by JG Wentworth" that takes a Texas sized swat at their competitors.
Fraud by Dishonest Structured Settlement Buyers Alleged by RSL Funding
"There are a number of ways that dishonest structured settlement buyers mislead their customers.
- One of the common forms of fraud occurs when buyers tell sellers to lie to a judge about how they plan to spend their lump sum cash settlement. (If a judge believes that the reason for the sale is not in the seller’s best interest, he or she will reject the agreement.)
- Some buyers falsify documents to make it seem like the seller lives in a state with fewer regulations against selling structured settlements.
- Some buyers will allow you to “sell” your structured settlement before the court actually approves the deal. But if the judge doesn’t approve the deal, you have to pay the money back, often with very high interest.
- Beware of advances. Some companies will give you an advance as a way to lock you into doing business with them. The truth is that you can always cancel until the deal is finalized…though you’ll have to pay the advance back, of course. Additionally, if the court does not approve your sale, you’ll have to pay the advance back as well.
- Read your contracts carefully! With some companies you’ll agree to terms over the phone and then see different terms in the contracts they send you to sign. And for life contingent deals, some companies will purchase life insurance on your behalf and include that cost in your contract without discussing it with you. Buyer beware!
- Don’t sell more than you need to. You need money now, and selling your structured settlement is a great way to get it. Know how much cash you need, and then sell enough payments to get the lump sum you need. Don’t let a pushy salesman talk you into selling anymore (sic)!"
Frauds Alleged by DRB Capital When Establishing Its "Stop Structured Settlement Fraud" Bounty Program in August 2018
- Violations of state or federal laws by people or entities in connection with purchasing structured settlement payment rights
- Violations of the internal revenue code section 5891, including Federal Excise Tax evasion.
- Violations of state structured settlement protection acts
- Improper forum shopping
- Suborning perjury by, among other things, making consumers execute affidavits containing false information about their residence and other matters
- Violations of federal and state Deceptive and Unfair Trade Practices Acts
Personally I think that RSL Funding loses some of its sting in that they seem to only target JG Wentworth, yet do not include the virtual "Rainbow of Poop" that exists in the structured settlement secondary market.
However RSL's new approach serves to underscore the extensive fraud on consumers that is being perpetrated in general in the structured settlement secondary market, which for unexplained reasons is negligently under regulated.
The "Rainbow of Poop" that exists in the Structured Settlement Secondary Market