NEW YORK, April 8, 2021 /PRNewswire/ -- The National
Advertising Division (NAD) of BBB National Programs recommends that
the J.G. Wentworth Company modify its advertising to disclose
clearly and conspicuously that its offer of "cash now," in exchange
for purchase of the customer's structured settlement and any
related annuity payment rights, is not immediate, but requires a
court approval process that takes, on average, seven weeks to
complete. Further, NAD recommended that where there is an implied
message that a customer's receipt of the lump sum is immediate, the
advertiser should modify its advertising to clearly and
conspicuously disclose material information about the timing of
receipt of cash.
The claims at issue, which appeared in television and internet
advertising, were challenged as part of NAD's routine monitoring
program, and included:
- "I have a structured settlement and I need cash now. Call J.G.
Wentworth."
- "I have an annuity but I need cash now. Call J.G.
Wentworth."
- "Do you get regular payments from an insurance company, for
example, from a personal injury settlement or a car accident? ....
In exchange for some or all of your future payments, we give you a
lump sum of cash now."
J.G. Wentworth has been in the business of purchasing structured
settlement payment rights since 1995. Structured settlements are
often used in the settlement of a personal injury lawsuit. Rather
than a lump sum payment at the conclusion of a lawsuit, the payment
is usually made on a regular basis over a period of years.
Consumers with a qualifying structured settlement can enter into a
contract with J.G. Wentworth, which then hires an attorney in the
state where the customer resides and prepares a petition to file
with the local court to approve the transfer of the customer's
structured settlement and any related annuity payment rights.
This process takes approximately seven weeks. Once the court
approves the petition, the consumer will usually receive their
payment within two business days. J.G. Wentworth often gives
customers a cash advance ahead of any court approval. J.G.
Wentworth also purchases private annuity payments that do not
require court approval but have other restrictions.
NAD determined that, in the context of the challenged
advertising, one message reasonably conveyed by the advertiser's
"cash now" claims with respect to a structured settlement and any
related annuity payment is that receipt of cash is immediate. NAD
noted that consumers are not clearly informed that they receive the
lump sum of cash only after a court approval process. Therefore,
NAD recommended that J.G. Wentworth's advertising disclose the
information that consumers need to evaluate the offer of "cash now"
in the context of their existing structured settlement and related
annuity payment plans, specifically that "cash now" is not
immediate but requires a process that takes, on average, seven
weeks to complete. In addition, where the implied message is
conveyed that receipt of the lump sum is immediate, the advertiser
should modify its advertising to clearly and conspicuously disclose
material information about the delay in receiving cash.
NAD noted that nothing in its decision prevents the advertiser
from making visual references to their services, provided that
disclosures communicating its limitations are sufficiently easy to
notice, read and understand (i.e., appearing when the triggering
claim is made).
In its advertiser statement, J.G. Wentworth stated that it
"agrees to comply with NAD's recommendations. As 25 years of
experience without a single complaint on payment timing attests,
customers understand what J.G. Wentworth's iconic tag line means
when it refers to 'cash now.' Nevertheless, J.G. Wentworth is
pleased to participate in the self-regulatory process and will take
NAD's recommendations into account in its future advertising."
All BBB National Programs case decision summaries can be found
in the case decision library. For full text of NAD, NARB, and CARU
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About BBB National Programs: BBB National Programs is
where businesses turn to enhance consumer trust and consumers are
heard. The non-profit organization creates a fairer playing field
for businesses and a better experience for consumers through the
development and delivery of effective third-party accountability
and dispute resolution programs. Embracing its role as an
independent organization since the restructuring of the Council of
Better Business Bureaus in June 2019,
BBB National Programs today oversees more than a dozen leading
national industry self-regulation programs, and continues to evolve
its work and grow its impact by providing business guidance and
fostering best practices in arenas such as advertising,
child-directed marketing, and privacy. To learn more, visit
bbbprograms.org.
About the National Advertising Division: The National
Advertising Division (NAD) of BBB National Programs provides
independent self-regulation and dispute resolution services,
guiding the truthfulness of advertising across the U.S. NAD reviews
national advertising in all media and its decisions set consistent
standards for advertising truth and accuracy, delivering
meaningful protection to consumers and leveling
the playing field for business.
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