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					JG Wentworth Sued Over Attempts to Defraud and Harm Consumers, and
Restrict Competition

JG Wentworth parent JGWPT Holdings and its president David Miller have
been sued for colluding with competitors to fix prices in a recently
filed lawsuit.

Houston, TX, May 03, 2012 -- JG Wentworth parent JGWPT Holdings and its
president David Miller have been sued for colluding with competitors to
fix prices in a recently filed lawsuit.1 Among other charges, J.G.
Wentworth, JGWPT, Peachtree and subsidiary entities have been sued for
entering into an agreement with other members of the National Association
of Settlement Purchasers or NASP, the trade association of factoring
companies, not to solicit other NASP members' customers and not to make
competitive bids to customers who have signed agreements with other NASP
members, even though court approval was lacking.

According to Paul McHugh, spokesperson for industry watchdog The
Structured Settlement Institute, “This JG sponsored collusion agreement
is anti-competitive, unlawful, and is directly at odds with the
underlying purpose of the Structured Settlement Protection Act, which
regulates the sale of structured settlement payments in order to protect
consumers. Peachtree and Wentworth are at the heart of this collusive
agreement.”

“Participating in an agreement not to compete – especially one promoted
by JLL Partners portfolio company, JGWPT, LLC which controls an estimated
65% of the market – serves to promote the financial gain of Wentworth and
Peachtree at the expense and integrity of the whole industry,” says
McHugh. In contrast, other factoring companies compete openly and freely
with Wentworth, Peachtree and NASP member firms in the secondary market
for structured settlement payment rights. RSL Funding, among a few other
companies that have not joined this alliance, declined to engage in what
it believes is illegal, anti-competitive conduct, an unreasonable
restraint of trade and a deceptive trade practice.

RSL Funding is one of the few companies willing to make competitive
offers to annuitants who have tentatively decided to sell their
structured settlement payment rights. RSL actively pursues sellers of
future income streams from settlement recipients in exchange for a lump
sum payment and for the most competitive price.

"Smart customers shop rates. Judges question customers to ensure that the
customers are getting a fair deal by requiring evidence of competitive
shopping," commented Stewart Feldman, who has long been active in the
structured settlement factoring industry. Feldman cited RSL as offering
among the best rates in the industry, with Wentworth affiliate,
Peachtree, and Imperial offering among the least value.

JG Wentworth and Peachtree today are controlled by New York private
equity fund JLL Partners. JLL Partners’ operations have recently
experienced a series of setbacks in the courts where they have tried to
pursue anti-consumer practices. Wentworth’s deceptive tactics include
numerous attempts at blocking clients from soliciting competitive offers
for more money, and then using the court system to interfere with
structured settlement agreements with competitive firms. “Another common
tactic used by Wentworth is to have its customers ‘shop’ its offers with
sister company Peachtree, with the customer not knowing that Peachtree
and Wentworth are affiliated and share call data, ensuring that they
don’t compete with one another. Customers are lured into believing they
are getting a fair deal when the other company doesn’t make a better
competitive offer,” explained McHugh. “What appears to be a competitive
bid is really an illusion,” says McHugh.

In response to the actions of Wentworth affiliates to dominate the
market, a Texas court recently upheld the right for RSL Funding, LLC   to
offer former Wentworth clients more money for their future payments2   and
to be free of claims for doing such. Repeated inquiry to counsel for   JG
Wentworth and Peachtree, L. Bradley Hancock, a partner in Greenberg
Traurig’s Houston office, resulted in a demand that this information    not
be publically disclosed..

Case No. 2006-23366, 113th Judicial District Court, Harris County, TX
Case No. 2009-78934, 334th Judicial District Court, Harris County, TX

About The Structured Settlement Institute
For further information, contact the Structured Settlement Institute
(SSI), a not-for-profit organization established to educate sellers of
structured settlements regarding fair and equitable practices among
providers of structured settlement transfers.

Contact:
Paul McHugh
Structured Settlement Institute
6725 Woodbridge Drive
Boca Raton, FL 33434
800-409-1975
info@structuredsettlementinstitute.com
http://www.structuredsettlementinstitute.com

				
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Description: JG Wentworth parent JGWPT Holdings and its president David Miller have been sued for colluding with competitors to fix prices in a recently filed lawsuit.