PRLog - May 3, 2012 - BOCA RATON, Fla. -- BOCA RATON, FL– JG Wentworth parent JGWPT Holdings has been accused of engaging in widespread deceptive trade practices in a recently filed lawsuit.1 An industry participant alleges Peachtree and Wentworth deceive consumers into believing they are competing with one other, while in actuality they are sharing databases which are used to support high rates imposed on consumers. After acquiring their major direct competitor, Peachtree Settlement Funding in June 2011, Wentworth fired 153 employees, virtually the whole of Peachtree Settlement Funding, while continuing to market under the former “Peachtree”
Paul McHugh, Vice President of Sales & Marketing at RSL commented, “Customers call Peachtree and then they call Wentworth, thinking that they are getting competitive bids. What customers don’t realize is that they are calling the same company. Peachtree and Wentworth don’t compete, in fact they are commonly owned and staffed by each other’s employees. They work cooperatively, collectively and out of the same office to ensure that the customer gets the least value for their future payments.”
Today, JG Wentworth and the remnants of Peachtree operate in lock step, despite the public perception that they are competing with one another. J.G. Wentworth was insufficiently capitalized and filed for bankruptcy protection in 2009 while owned by JLL because it could not meet its financial obligations. After emerging from bankruptcy and still JLL owned, Wentworth purchased Peachtree in June 2011, which had also fallen on hard times because of ill-advised venturing into life settlements. Today, JG Wentworth continues to be controlled along with Peachtree Settlement Funding by New York based investment fund, JLL Partners.
“What this means for those seeking to sell their structured settlement or annuity payments for an upfront lump sum is that choosing a structured settlement factoring company has to be carefully considered,”
JLL Partners’ controlled companies have recently experienced a series of setbacks in the courts where they have continued their anti-consumer practices. Wentworth’
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 publicly disclosed.
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1 Case No. 2006-23366, 113th Judicial District Court, Harris County, TX
2 Case No. 2009-78934, 334th Judicial District Court, Harris County, TX
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.
Structured Settlement Institute
6725 Woodbridge Drive
Boca Raton, FL 33434