Peachtree Settlement Funding chooses to highlight that in 2006 a United States Olympic curling athlete, Jimmy Joseph, sold a portion of the (rights to) structured settlement payments (he receives for a double amputation) to pay for medical expenses. http://www.oandp.com/edge/advertisers/peachtree_funding/E-Peachtreehelped_1.pdf
The advertising misleading because it fails to state the ultimate price to JImmy and the target of the advertising of of selling his payments to Peachtree.
"Cash Now Pusher" Peachtree Settlement Funding is generally known for high effective discount rates which means non competitive pricing. Sure Jimmy Joseph paid off his debts, but at a higher price than he likely had to had he shopped around. Why anyone would patronize Peachtree Settlement Funding when better discount rates can be had elsewhere is incomprehensible.
Assume the following facts for purpose of this illustration:
Structured Annuity of $3,500 per month level income tax free payments from AAA rated annuity issuer
Medical Debt of $35,000 and no other means to pay it
Assume 60 monthly payments of $1,000 are sold beginning 9/1/2008. Using the structured settlement factoring dioscount rate calculator one can calculate that
- Company A will pay $39,010 assuming an 18% effective discount rate
- Company B will pay $46,810 assuming a 10% effective discount rate
- Company C will pay $47,490 assuming a 9.4% effective discount rate
The feedback we hear is that cash now pusher Peachtree Settlement Funding discount rates are generally in the mid to high teens.
If he can get a better effective discount rate this hypothetical annuitant could chip way less of his financial future by avoiding having to sell as many payments.
Fun With Peachtree's Tag Line
Peachtree Says: Life Doesn't Wait, Why Should You?
Alternative:
High Discount Rate, Why Should You?
Shop Around Mate, Don't Take Poo!
Low Discount Rate, Better For You!
Silly Peachtree, Don't Bear Much Fruit!
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