Most people have heard of JG Wentworth, thanks to brand recognition efforts, but they may not know what the company does. From its inception as a merchant bank, the organization has become known for its structured settlement; however, it also offers debt relief services.
What is JG Wentworth?
Gary Veloric and Michael Goodman began JG Wentworth as a merchant bank in 1991. Since its founding, the company has expanded to offer cash for structured settlements. The settlements may be annuities, casino or lottery winnings, and insurance settlements. Consumers surrender their payments from a structured settlement in exchange for a lump-sum cash payment.
The services are designed to provide individuals with cash for immediate needs instead of waiting for structured payments that can take years. The company also offers debt relief services for individuals with unsecured debt from credit cards, personal loans, and medical bills.
Why Work with JG Wentworth?
Everyone has times when they need cash for an emergency or unexpected expense. Sometimes the best option is to sell all or part of a structured settlement. If that seems a viable solution, JG Wentworth has years of experience finalizing structure settlement buyouts.
Debt Relief Services are best for people that have exhausted all options for dealing with their debt. Rather than face bankruptcy, debt relief services such as JG Wentworth can help negotiate with creditors to settle for a lower amount than what is owed.
JG Wentworth’s Products and Services
JG Wentworth offers the following products and services:
Debt Relief Services
The company offers debt relief services for individuals facing an overwhelming amount of unsecured debt. JG Wentworth works with creditors to lower a consumer’s debt balance. When successful, the cycle of making minimum payments can be broken so customers can emerge with less debt.
Structured Settlements
Structured settlements occur when individuals receive large monetary sums to be paid over a pre-established period. While these regular payments may help with financial planning, there are times when additional funds are needed for medical expenses, unexpected bills, or financial hardships. JG Wentworth can purchase all or part of the future payments and provide the consumer with a lump sum cash amount.
Annuity Purchasing
Annuities are financial products that return a set dollar amount, usually during retirement. Some pension plans use annuities, as do some lottery payouts. The security that comes with annuities makes them a popular investment product; however, circumstances change, and a large cash payout is needed. Therefore, JG Wentworth Annuity Purchase Program® has been to help customers receive a lump sum of cash for their structured settlement annuities.
When selling annuities and structured settlements, consumers have three options:
- Complete: An entire sale means selling all future payments for a lump sum. The lump sum is usually higher, but all future payments will be lost.
- Partial: If a smaller dollar amount is needed, customers can sell only part of their future payments. For example, individuals may sell 12 months’ worth of payments in exchange for a negotiated amount. Once the year is over, payments will resume.
- Lump-sum: With this approach, consumers sell a portion of all future payments in exchange for a lump sum. This sale allows people to retain a portion of future payments.
JG Wentworth Pricing
Due to FTC rules and regulations, debt relief or debt settlement companies aren’t allowed to charge upfront fees. So instead, you will be making on-time payments into a dedicated savings account, and JG Wentworth only charges fees for the debt they have negotiated.
This means that the charge will depend on a certain percentage of your debt as a fee, which varies by state. According to various sources, JG Wentworth charges fees between 9% and 15% of the client’s debt.
How Does the Process Work?
For debt relief, individuals with a minimum of $10,000 of unsecured debt should complete the form on the company’s website. A representative will be in touch to discuss details. The company will work with the creditors to arrive at a lower balance. When the negotiations are complete, a payment plan will be created so consumers make a single payment to JG Wentworth.
You can start the process by answering a few questions on the company’s website for structured settlements and annuity purchasing. These involve personal information and the value of the settlement. Next, a structured settlement specialist will be in touch. After speaking with the representative, a free, no-obligation quote should be delivered. At this point, the consumer can accept, reject or negotiate a different arrangement.
Once the terms have been decided, a contract will be drafted. Because the settlement is a legal matter, it is advisable to have an attorney review the agreement. Before the money can be transferred, the consumer must appear in court. The judge will hear the details and review the paperwork. A court ruling should be available within 60 to 90 days from the court appearance. If approved, the money will be released.
