Clockwork Funding’s advertising is a pock mark on the California insurance industry and highlights a brazen unfair trade practice that affects California consumers, registered voters and individuals and entities (both CA and foreign) who pay millions to California in registration and licensing fees. State Insurance Commissioner John Garamendi, The Governator, Arnold Schwarzenegger, and the California legislature have the cure.
First the offense, Download pcaliforniasettlementannuity_yahoo_912006.pdf "Pock" work funding is advertising "Structured Settlement Annuity from Clockwork Funding". This comes up #9 on a Yahoo search of "California settlement annuity quote".
According to the Whois record the company’s domain is registered to James Coffey 8255 SE Governor’s Way Hobe Sound, FL 33435 Tel. (561)-545-7611 Download clockworkfunding_whois_9_1_2006.pdf . It shouldn’t surprise anyone who has read this blog that neither Clockwork Funding nor James Coffey holds a California insurance license.Check to see if an insurance agency or entity is licensed in California To give some benefit of doubt I checked to see if they were on the List of Viatical Providers in California listed by California Insurance Department. They weren’t!
So far the Coffey "grounds" came up all zeroes so I moved on to the California Secretary of State, first checking for Clockwork Funding, LLC which is on the firm’s web site Download California_lpllcsclockwork_8312006.pdf More zeroes!
So now on behalf of myself, a licensed individual, my company, registered and licensed and other duly licensed insurance agents and registered companies similarly situated , I ask you John Garamendi and Governor Schwarzenegger what can you do to put some heat on and stop Mr. Coffey and his company from further abuse?
Why should I and others collectively pay millions of dollars in licensing and registration fees to the State of California when you let Coffey and Clockwork Funding, LLC skate by under your noses, denying your citizens the same service of process capability that they get with registered and licensed individuals and entities and fomenting a discriminatory unfair trade practice?
California insurance consumer protections laws including the Senior Protection laws regarding annuities are commendable. However someone is definitely missing the boat here. Structured Settlement Protection Acts provide protection for "when the clock is about to strike midnight". Consumers need protections well before the consumer’s speak to a factoring company representative. For seniors these should be cosistent with the senior protection rules with other annuity sales. California should consider following and enhance the example set by one of the smallest states in our country, West Virginia, which requires factoring or transfer companies like Clockwork Funding, LLC to register with its Secretary of State. As I wrote last week "The Mountaineers Have the Right Idea". Any new rules should establish clear definitions of terms to mitigate consumer confusion and unfair trade practice. Clockwork Funding, LLC and other similar companies should be subject to enforcement of truth in advertising laws. They should not be permitted to advertise in California using terms which imply that they have a license (such as the example of "California Settlement annuity quote" or "Structured Settlement Annuity" at Clockwork Funding).
The leaders of the National Association of Settlement Purchasers ought to be concerned to the extent that companies such as this give them a bad rap.
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