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company_name = J.G. Wentworth |
company_name = J.G. Wentworth |
company_slogan = ''It's your money.''|
company_slogan = ''It's your money.''|
company_logo = [[Image:JGWlogo.png|JGWlogo.png]] |
company_logo = [[:Image:JGWlogo.png|JGWlogo.png]]<!--Non free file removed by DASHBot--> |
foundation = 1991|
foundation = 1991|
location = [[Bryn Mawr, Pennsylvania]], [[United States|USA]]|
location = [[Bryn Mawr, Pennsylvania]], [[United States|USA]]|
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==Commercials==
==Commercials==
[[File:JGWentworth.OperaCommercial.png|thumb|right|J.G. Wentworth's Opera commercial]]
[[:File:JGWentworth.OperaCommercial.png|thumb|right|J.G. Wentworth's Opera commercial]]<!--Non free file removed by DASHBot-->


In 2007 J.G. Wentworth has announced that it spent $43,000,000 (43 Million Dollars) in advertisement budget. <ref>http://reversemortgagedaily.com/2010/12/05/j-g-wentworth-plans-to-expand-into-reverse-mortgages/</ref> It would be reasonable to assume that since then their budget has increased, however since J.G. Wentworth is not a publicly traded company that information is not available.
In 2007 J.G. Wentworth has announced that it spent $43,000,000 (43 Million Dollars) in advertisement budget. <ref>http://reversemortgagedaily.com/2010/12/05/j-g-wentworth-plans-to-expand-into-reverse-mortgages/</ref> It would be reasonable to assume that since then their budget has increased, however since J.G. Wentworth is not a publicly traded company that information is not available.

Revision as of 05:03, 2 February 2011

J.G. Wentworth
IndustryFinance
Founded1991
HeadquartersBryn Mawr, Pennsylvania, USA
Area served
United States
Key people
David Miller (CEO), Randi Sellari (President)
ServicesBuys structured settlement payments  · Fixed Annuities  · Lottery Winnings  · Lawsuit Advance
WebsiteJ.G. Wentworth

J.G. Wentworth is a financial services firm that specializes in purchasing structured settlements and annuities from individuals at a certain discount rate.[1] The company is owned by private equity firm JLL Partners.[2]

History

Founded in 1991, J.G. Wentworth started as a merchant bank[3] handling transactions in the healthcare industry.[4] In 1992 the company began to purchase New Jersey's auto insurance deferrals at high interest rates from claimants who could not afford to wait 12 to 18 months for their settlements.

By the late 1990s, JGW began to focus on the structured settlement and annuity business.[5] JGW has issued 22 securitizations, which are backed by both structured settlements and annuities receivables totaling over US $2.3 billion.[6] Since 1992 JGW has purchased US $4 billion in future payment obligations from consumers.[7][8] As of November 2010, the company has completed a US $212 million securitization consisting of two classes of notes: Class A notes rated Aaa and Class B notes rated A2 by Moody's Investors Service,[9] in addition to a Residual Class of US $14.8 million retained by the Company.[10]

Prior to 1999 there was no state regulation for structured settlements which enabled J.G. Wentowrth to purchase structured settlements at rates as high as 70% discount rate (annually compounding) [11]. Elliot Spitzer to protect New York citizens has banned all J.G. Wenworth deals in New York until they entered into a contract with the state which limited the maximum discount rate to 25 percent. Since then regulations and practices have spread over most states to limit what discount rates are likely to go through court.

Chapter 11 Bankruptcy Protection & Reorganization

In mid 2008, J.G. Wentworth was showing signs of substantial financial trouble, being forced to cancel their cases by sending their clients letters that stated

"This letter will confirm that we no longer pursuing your transaction involving the sale of your structured settlement payments." [12]

as well as letters stating in bold letters "JG Wenworth is breaching contracts because of lack of funding."[13]

Later in 2009, the firm formally known as JGW Holdco LLC and two of its subsidiaries, J.G. Wentworth LLC and J.G. Wentworth Inc., entered Chapter 11 bankruptcy protection after the company "encountered liquidity problems amid a tightening credit market".[14] J.G. Wentworth laid off 120 of its 200 employees and closed its office in Las Vegas, as well as washed off hundreds of millions of dollars in debt. [15]

In less then 6 months JG Wentowrth parent company JLL Partners of New York invested $100 million in the firm. [16] Subsequently, J.G. Wentworth began hiring new staff at corporate headquarters located in Bryn Mawr, Pennsylvania.

Legal Issues

In January 26th 2011 Superior Court of Los Angeles County, Judge Anthony J. Mohr has filed a verdict of UNFAIR BUSINESS PRACTICES for referring their own attorneys to clients then having the seller pay for the attorney out of their purchase price. Therefore J.G. Wentworth (321 Henderson Receivables, a name J.G. Wenworth uses on all their contracts with sellers) actions against its own clients included fraud, misrepresentation and practices that were oppressive and unconscionable. [17]


Commercials

thumb|right|J.G. Wentworth's Opera commercial

In 2007 J.G. Wentworth has announced that it spent $43,000,000 (43 Million Dollars) in advertisement budget. [18] It would be reasonable to assume that since then their budget has increased, however since J.G. Wentworth is not a publicly traded company that information is not available.

JGW has won several awards both domestically and internationally[19] including a silver Davey award.[20] The commercials feature a singing "Opera" star who recites the need for getting cash from a settlement.

Most recently the "Wagnerian Opera" commercial won two International Summit Awards for Best Humor and Best TV between US $75k and US $100k.[21]

Due to the popularity of the first Opera commercial J.G. Wentworth created a follow-up spoof, which has also gained fame. Pictured is a snapshot of the commercial featuring the Opera singer on a bus. Unlike the first commercial where all of the characters were dressed up as Vikings, the characters are regular every day people on a bus with the "Opera singer".


References

  1. ^ http://in.reuters.com/article/privateEquity/idINN1944239020090519
  2. ^ Rosenbush, Steve. "Wentworth's pocket of gold." BusinessWeek, July 7, 2006
  3. ^ http://www.off-road.com/offroad/article/articleDetail.jsp?id=534739&sk=&date=&pageID=4
  4. ^ http://ipo.nasdaq.com/TextSection.asp?cikid=44308&fnid=9536&sec=bd
  5. ^ http://structured-settlement.top-companies.info/
  6. ^ http://www.cnbc.com/id/40025991
  7. ^ http://www.bradenton.com/2010/05/04/2257213/dan-hayes-joins-jg-wentworth-as.html
  8. ^ http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100813005446&newsLang=en
  9. ^ http://www.dublicore.org/j-g-wentworth-completes-212-million-securitization-of-asset-backed-notes/
  10. ^ http://www.forbes.com/feeds/businesswire/2010/11/05/businesswire148110818.html
  11. ^ http://www.ag.ny.gov/media_center/1999/jul/jul29b_99.html
  12. ^ http://jgw-sucks.com/files/JGW%20Cancellation%20Letter%2009-12-08.pdf
  13. ^ http://structuredsettlements.typepad.com/structured_settlements_4r/files/jg_wentworth_letter_to_fl_structured_settlement_annuitant_sept_17_2008.pdf
  14. ^ http://www.investmentnews.com/article/20090607/REG/306079972
  15. ^ http://www.bizjournals.com/philadelphia/stories/2009/11/30/daily33.html
  16. ^ http://philadelphia.bizjournals.com/philadelphia/stories/2009/11/30/daily33.html?f=et72&jst=e_cn_lk&iana=e_du_pub&s=du&ed=2009-12-03
  17. ^ http://www.courtinfo.ca.gov/opinions/nonpub/B224935.DOC
  18. ^ http://reversemortgagedaily.com/2010/12/05/j-g-wentworth-plans-to-expand-into-reverse-mortgages/
  19. ^ http://www.allbusiness.com/banking-finance/financial-markets-investing-securities/12330169-1.html
  20. ^ http://eon.businesswire.com/portal/site/eon/permalink/?ndmViewId=news_view&newsId=20100316005604&newsLang=en
  21. ^ http://www.highbeam.com/doc/1G1-199662510.html

External links

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