Complaint Review: J G Wentworth

Wentworth Loses Key Federal Court Ruling.  Court Increases Competition in the Structured Settlement Space. 

Another court – this one a federal court in Houston – handed down a ruling that stops Wentworth and Peachtree from its anti-consumer and anti-competitive practices. Wentworth/Peachtree has threatened its competitors for years with lawsuits if "its customers" were approached with a better deal (that is, more money) for the consumer. Wentworth has threatened its competitors across the U.S. Given that a filing for the sale of lotteries and structured settlements has to sit at the courthouse generally for at least three weeks, competitors now have the opportunity make higher offers to customers selling their structured settlements, leading to a better deal for the consumer and a worse deal for Wentworth. The federal court in Houston ruled – now about the 3rd or 4th court so holding – that a competitor is free to solicit so-called "Wentworth customers" at least right up until the court order is signed – maybe thereafter until it is final weeks later. The filing of a transfer agreement or a contract does not stop the customer from continuing to seek highter bids. Competitors now are free to review and solicit Wentworth customers at will. Wentworth has spent an estimated $1 million trying to shut down these practices; it has now lost.