Since 1992, JGWPT's subsidiary companies and their predecessors have purchased over $7 billion of future payment obligations from consumers, according to its December 8, 2011 press release.
According to its May 2009 Bankruptcy Code Section 1125 Disclosure Statement JG Wentworth believed it had 50% market share (of the structured settlement factoring market a/k/a " secondary market"). The merger with/acquisition of Peachtree in 2011, dramatically augments that market share given that Peachtree was JG Wentworth's next largest competitor. As of May 2009, the combined total of JG Wentworth's securitizations was $3 billion. The $7 billion figure is a combination of the total securitizations completed by the two companies and their other subsidiaries.
Contrast this with over $124 billion* of structured annuity premium written between 1975 and 2010. The structured annuity premium purchased many multiples of the premium in future payment obligations
Image: Wikipedia
There is a critical distinction between structured annuity premium written and future benefits purchased, which makes it clear that the structured settlement factoring phenomenon has not had that big of a statistical impact. Yet saturation advertising and certain business practices have created a perception of the opposite and jaded some lawyers, judges and the primary market in general.
Judicial review is required in order to determine if a structured settlement factoring transaction is in the best interest of the seller. Without court approval there is an onerous tax on the purchaser which amounts to 40% of the factoring discount.
*Source: S2KM
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