by Structured Settlement Watchdog
SuttonPark Payment Servicing Misery Continues for “Serviced” Structured Settlement Payees
T.L., a Richmond Virginia structured settlement annuitant, was injured in an industrial accident and the settlement recovered from a manufacturer in the 1990s, included periodic payments funded with a structured settlement annuity issued by First Colony Life Insurance Company (later rebranded in 2007 under Genworth, after GE Capital’s August 5, 1996 acquisition of the insurer).
T.L.told me that he sold some payments to JG Wentworth and then some to smaller company which I understand was where SuttonPark came in. After the transfers, T.L. says he has more than 50% unsold, but subject to a payment servicing agreement with SuttonPark.
Payment servicing arises for annuitants who sell a portion of their structured settlement payments and for investors who buy portions of these structured settlement receivables.
Where a servicing agreement is in place, the annuity issuer sends the entire serviced payment to the servicing company (when due) and then the servicer divides the payments like a hibachi chef divides up portions of shrimp at lobster, flipping a piece into their toque blanche .
Payments were smooth until recently. I learned from T.L. that payments are 3 weeks late and nobody is answering or returning phone calls.
SuttonPark “Cashed The Check”, Genworth Told T.L.
When T.L. was unable to reach SuttonPark, he contacted Genworth who told T.L. that a check was sent to SuttonPark (including the 3 week in arrears amount) and that SuttonPark had cashed the check. T.L.said that Genworth told T.L. to contact me which he did.
SuttonPark failed to provide timely communication to partial seller annuitants and left them hanging
I reached out to several Board members of the National Association of Settlement Purchasers and other contacts. NASP President J.Brian Dear graciously responded and offered to reach out to his contacts to see if T.L. situation (delayed payment) can be resolved. That’s a positive.
Here’s another negative annuitant impact piece which I reported on June 23, 2024. I’m sure there are more.