Structured Settlement Watchdog®
Have a seat kids, it's milk and wikis time! Wikipedia's structured settlement page has been over "collaborated" on by structured settlement factoring industry numb nuts.
In an under regulated industry that has shown an inability to self regulate, why should that surprise anyone? The result is a mish mash of misinformation that is increasingly less useful to consumers. For example:
Wikipedia on Structured Settlements
"Structured settlements may include income tax and spendthrift requirements as well as benefits and are considered to be an asset-backed security" citing Cherubini, Umberto (2007). Structured Finance: The Object Oriented Approach. Sussex, England: John Wiley & Sons. p. 77. ISBN 978-0-470-02638-0.
Structured Settlement Watchdog®
- A structured settlement is a form of payment of damages
- Structured settlements do not include income tax and spendthrift requirements.
- Structured settlements may provide income tax and spendthrift benefits. The tax benefits depend on the type of damages that the structured settlement payments represent.
- Any specific requirements to create a valid structured settlement would be those required by the structured settlement provider to comply with Federal and/or state law.
- Structured settlements are not an asset backed security.
- According the United States Internal Revenue Code the term “structured settlement” means an arrangement— (A) which is established by (i) suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104 (a)(2), or (ii) agreement for the periodic payment of compensation under any workers’ compensation law excludable from the gross income of the recipient under section 104 (a)(1), and (B) under which the periodic payments are— (i) of the character described in subparagraphs (A) and (B) of section 130 (c)(2), and (ii) payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.
- In the secondary market, cash now pushers like JG Wentworth, through their investment bankers, package up structured settlement cash flows (assets) that they have acquired at a discount and sell them as an asset-backed security.
The Wikipedia financing section on structured settlements is a joke, leaving the potential for consumers and Fiverr paid content writers hired by cash now pushers to be confused
The Wikipedia entry attempts to define structured settlement purchaser as an individual or entity that buys a pre-existing structured settlement which allows them to attempt to justify JG Wentworth as the largest buyer . The fact is that JG Wentworth buys structured settlement payment rights (a term also defined separately in the Internal Revenue Code). AIG could crush the structured settlement purchasing power of JG Wentworth like a bug. Now THAT's RAD(nor) Baby!
Images: Dreamstime.com