by Structured Settlement Watchdog®
A New Front Against "Literary Defecation" from the Secondary Market Promoters
Thank you John Zepeda of Rescue Capital (formerly of J.G. Wentworth) for opening up another front against the blog vermin whose "literary defecation" spreads a disease of illiterate, poorly researched misinformation about annuities and structured settlements in the hope of increased SEO and the inebriation of pay-per- click manna.
Zepeda observes "They write posts with erroneous information about financial terms that confuses the hell out of most people. I am pretty sure there (sic) doing it to trick search engines but seriously folks you need to get the facts. He then publishes a list of what he sees as some of the most common errors that bloggers make".
Some have to do with structured settlements and structured settlement factoring transactions. For example Zepeda says:
- Annuities and Structured Settlements are NOT the same thing:
A structured settlement is a financial arrangement. An annuity is a financial product that provides a series of payments over a specific period of time such as a lifetime. Delivered on a set schedule, these payments can be paid monthly, quarterly, biannually, or annually. There are many different types of annuities but they are typically sold by insurance companies. Many individuals purchase them in order to have a reoccurring source of income during retirement. As in the case of a structured settlement, the insurer, or designated third party, purchases an annuity from a life insurance company in order to provide periodic payments to the claimant. - Lottery winnings are NOT structured settlements:
When you win the lottery you have the option of receiving a cash lump sum or an annuity. This is not a structured settlement. - Structured Settlement Factoring Transactions are NOT loans – A Structured Settlement Factoring Transaction is when you sell your future payment rights to a third party for a cash lump sum. This is not a loan. You do not have to pay the money back and it has no effect on your credit score.
Comments
It should be noted and emphasized, that an annuity is often purchased as a "qualified funding asset" as part of a structured settlement. The annuity is NOT sold in a structured settlement factoring transaction becuase the structured settlement annuitant does not own the annuity and cannot sell the annuity.
The transaction always results in a loss that is magnified by the size of the discount rate charged by the originating structured settlement factoring company.
I wish more participants in the primary and secondary structured settlement market would contribute to the battle to achieve the clearest path to true structured settlement information for structured settlement consumers.
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