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Litigation: Structured Settlements 4Real
Why Doesn't JG Wentworth Give People Their Best Quote Right Away?
By John Darer
If JG Wentworth will not give you their best quote right away, then someone comes in with a much better quote and JG Wentworth decides to match, should you still do business with JG Wentworth?
If the above happens you should say no to JG Wentworth, on principal. With the above cited behavior companies like JG Wentworth take advantage of desperate, unsophisticated consumers who do not shop around. Just remember if you had not shopped around the better offer from JGW might not have been obtained.
Factoring exchanges like Settlement Quotes, LLC conveniently put your quote out to bid to 6 companies and charge low fees. Clearly JG Wentworth has been a huge success story, but that doesn't mean they deserve your business if they behave the way that I described. THEY have chosen to spend $40+ million annually on advertising. It's not your obligation to help them pay it off faster!
If you already have done business with JG Wentworth and you again find yourself in need of cash, you should go through the evaluation process as if you were doing it for the first time. Consult an independent financial professional unrelated to JG Wentworth (be mindful of the JG Wentworth alter egos like 321 Henderson). explore and exhaust all other options first, and shop around. Don't automatically assume that your rate from JG Wentworth will be the most competitive.
In a recent real life example an annuitant was trying to sell a single lump sum of $110,000 due on 08/25/2019 from GE Capital Assurance Company. JG Wentworth offered $23,000 ( a discount rate of 13.72 plus fees, which brought the effective discount rate to 14.53%. A competing company offered $40,000 inclusive of all fees, for effective discount rate of 8.8%. Subsequently the annuitant received a call from JG Wentworth stating that they "value him as a third time customer blah blah blah" and will match. If JG Wentworth really valued this customer then why did it come in with the $23,000 offer.
In another recent real life example an annuitant was trying to sell a single lump sum of $128,372.70 due on 06/12/2019 from Aviva. JG Wentworth offered $21,000 including fees ( an effective discount rate of 16.17%. She actually agreed to the deal, went through the process, got court approval, received her check. For some reason she only THEN decided to see her own attorney who, unlike free attorney provided by JG Wentworth (who who had an undelegable duty to determine if the transaction was in the annuitant's best interest) who "blessed the deal", got her out of deal by sending a FEDEX to JG Wentworth along with a notification to cancel. Such cancellation is possible under Maryland law up until the "cash now' check is cashed by the consumer. This escape hatch is little known, but important information for consumers to know.
Another company then offered $49,000 inclusive of all fees, for effective discount rate of 8.57%. If JG Wentworth really valued this customer then why did it come in with the $21,000 offer? Seeing that the consumer in question didn't shop around to begin with, the opportunistic JG Wentworth came in with a "fat" quote. Seems a bit
Don't be a "sell structured settlement" sucker!
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