by Structured Settlement Watchdog
Matt Bracy, a partner in the Dallas law firm of Nesbitt Vassar & McCown was interviewed by LBN's Mark Wahlstrom in a podcast published on Legal Broadcast Network July 25, 2013 shortly after the SEC/ FINRA bulletin on investing in Pension and Structured Settlement income streams was published.
Given recent developments, I'd like to point out a few things:
A. At 7:41 through 7:49 of the video Bracy states that "the secondary market is not doing anything to destroy the primary market. They all see the benefit of these (structured settlements)". This is a point that Bracy echoed from an April 2011 debate between him and I that was published in May 2011 (see link below)
On February 16, 2014 I conducted an survey of online advertising by members of NASP. The fact is that despite what Matt Bracy represented to Wahlstrom in the video, it is evident that the overwhelming majority of members of the National Association of Settlement Purchasers exhibited at least one active web page where they openly market against structured settlements on their websites, in their advertising to potential sellers.
1. An Fed Bank/ Bank of the Internet (NASP)
" Don't Wait For Your Next Structured Settlement Payment, Sell It For a Lump Sum Today" Press Release March 24, 2012.
2. Fairfield Funding (NASP)
Fairfield Funding "Turn Off the IV Drip Feed" So They Can "Amputate Your Leg" April 25, 2012
3. JG Wentworth (NASP)
" Don't wait" February 16, 2014
and also through its other website Structuredsettlementtransfers (dot)com
Download StructuredSettlementTransfers JGWPT 2-16-2014
4. Imperial Structured Settlements (NASP)
"Don't Wait, Get Paid Now" February 16, 2014
5. Northeastern Capital Funding (NASP)
"Why should you have to wait for your money?" February 16, 2014
6. Stone Street Capital LLC (NASP)
Displays the following toll-free numbers on its web site contact page
1877-WHY WAIT ; 1800 WHY WAIT 1-888-WHY WAIT
7. Genex Capital (NASP)
"Why wait for your money? Free it up today with Genex Capital". February 16, 2014
"Don't Wait For Future Structured Settlement Payments!"
Download CashFuturePayments Genex 2-16-2014
8. Peachtree Settlement Funding (NASP)
"Why Wait" February 16, 2013 on resourcefully.com
9. Client First Funding (NASP)
"Your structured settlement should give you a better life, not make it more challenging" TV commercial posted on the Client First website February 16, 2014 -includes image of cartoon couple toasting with champagne.The company has also advocated selling your structured settlement to pay for tuition (Dec 5, 2011) when such cash in hand would possibly increase the expected family contribution(EFC) and thereby reduce the amount of financial aid available.
{see below for examples of how non-NASP members market against structured settlements using a "why wait" or "don't wait" approach]
B. At 12:13-12:34 of the video Bracy dismisses the need for extra regulation or licensing as being "more trouble than it's worth" with the back up of a court approval process. Bracy states that a judge reviews each submission and "often stares at the person on the eyes" and knows them be a person living in the community and decides whether or not in best interest", a "level of scrutiny that doesn't exist anywhere else"
i respect Matt Bracy and we've had an online debate in April 2011, which was published on LBN, but I wonder given what has come out in the last 6 months since he shooting of the 2013 video, if Bracy could still make the same statement in good faith.
Is this a "turf war", or is it simply time to stop allowing the structured settlement secondary market to skate on what is common place for other financial products {licensing, rules for soliciting seniors (injury victims) etc]? Frankly the structured settlement secondary market would be stronger and more credible, in my opinion, with the regulation that Matt Bracy has repeatedly dismissed. In the April 2011 debate Bracy also agreed that certain aspects of solicitation were a problem and that a clear path to information for the consumer was desirable.
Let's be clear, there' nothing dishonorable about offering liquidity through structured settlement transfers,in my opinion. The lack of regulation however, has led to seemingly incorrigible bad advertising practices and manner of solicitiation of both sellers and investors. The legality of some of the practices has even been called into question on occasion.
NOTES
Liberty Settlement Funding (non NASP)
"…you shouldn’t have to wait years or even decades to …" February16,2014
Rescue Capital (non NASP)
"Don't Wait for your Money Sell your Structured Settlement" February 16,2014
Integrity Funding
"If you're tired of waiting on small, monthly payments …" February 16, 2014
FURTHER READING ON PENDING REGULATION
Factoring Bill to Cap Discount Rates Introduced in House of Representatives January 27, 2014