by Structured Settlement Watchdog®
Novation Capital, a factoring company, related to Encore Funding, based in West Palm Beach, Florida, claims on its website that "Novation Capital is a leading expert in structured settlements, and trusted leader helping people with cash settlements" (see bottom of the linked web page). It has also previously claimed that it is a leader in the structured settlement industry.
Like the claim of its fellow "cash now " company, JG Wentworth, Novation's claim that it is "a leader in the structured settlement industry" is confusing to consumers, because arguably Novation Capital, LLC is not in the structured settlement industry.
It is interesting that Novation Capital, LLC claims that it is a leading expert in structured settlements, a product which requires and insurance license to sell. I checked the State of Connecticut Insurance Department's web site and was unable to find a valid insurance license for Robin Marc Shapiro, Charles Lowe or Harold Grossman, the 3 Ivy League educated managers listed on the annual report filed in Novation Capital, LLC's Florida domicile and on the Novation Capital, LLC web site. Nor was I able to find one for Marc Harris, who is listed as being a Patron Member of the Society of Settlement Planners.
I also wonder what being a "leader helping people with cash settlements means? Is Novation Capital, LLC providing more than just being a factoring company? Does Novation Capital, LLC provide investment advice? Help people budget? Do they do Estate Planning? Sell them life insurance or long term care insurance?
Novation Capital, LLC even has had the audacity to refer to itself as a structured settlement company. Novation Capital , LLC is not a structured settlement company! If you want a structured settlement you cannot get one from Novation Capital, LLC.
- Once again a structured settlement a form of settlement of a legal claim that is most commonly funded with an annuity contract. An annuty contract is an insurance product, regulated under State law and requires a license to solicit and sell consumers.
- Novation Capital, LLC is a structured settlement factoring company. Among other things, if court approved, it pays a discounted amount of cash for an annuitant's periodic payment rights in a structured settlement.
Novation Capital is soliciting business in the state of Connecticut as evidenced by its web advertising. The CT law firm of Kroll, McNamara, Evans & Delehanty, LLP represents on its website that it counts Novation Capital, LLC as one of its clients which is another indicative of its doing business. The web site viewable to Connecticut residents and potential consumers reflects the claims. However neither Novation Capital (Download novation_capital_ct_search_432006.pdf) nor Encore Funding (Download encore_funding_ct_search.pdf ) appear to be registered with the Secretary of State of the State of Connecticut. I wonder what Mme. Secretary Susan Bysiewicz has to say about this?
The problem with Novation Capital, LLC's structured settlement advertising is that it is confusing to consumers and could lead a reasonable consumer to believe that it is something that it isn't.
Factoring companies, like Novation Capital, LLC should change their advertising practices and stop misrepresenting:
- That they are structured settlement companies
- That they are in the structured settlement industry
- That they are structured settlement experts
- That they are structured settlement brokers
- That thet are in the structured settlement business
- That they can provide a structured settlement quote or quotes
- Stop programming the titles, meta tags and meta descriptions in the computer code on your website to suggest 1-6 above.
- Stop buying pay-per-click ads for keywords that suggest 1-6 above.
The streets may seem paved with gold over here in the structured settlement industry but why not just be proud of who you really are?
- A structured settlement factoring company
- A company that purchases structured settlement payment rights
- A company that acquires structured settlement payment rights in the secondary market
- A company that provides liquidity to otherwise illiquid assets in compliance with state and federal law.
- A company that sells receivables to investors.
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