J.G. Wentworth

J.G. Wentworth was formed by James D. Delaney and Gary Veloric in 1991 as a merchant bank specializing in transactions in the healthcare industry.[6][7] In 1992, the company began to purchase New Jersey auto insurance deferrals from claimants who could not afford to wait twelve to eighteen months for their settlements.[8] According to Consumer Reports, as of 2010 J.G. Wentworth customers paid an "effective discount rate" amounting to "9 percent to 15 percent or more"; i.e., customers give up 9-15% of their future payments in exchange for a present-day cash amount. Though this might be considered a high fee, Consumer Reports says it could be preferable to surrender fees for annuities or other alternatives.[9]

Prior to 1999 there was no regulation for structured settlements in the state of New York. Eliot Spitzer, then New York's state Attorney General, entered into a contract with J.G. Wentworth to regulate the industry and limit fees. The agreement stipulated that J.G. Wentworth could receive a rate of no more than twenty-five percent of the annual discount rate of annuities it had purchased from citizens of the state of New York.[10] At the time, a JGW executive told the New York Times that the firm sought the agreement because of the rate at which its business had grown.[11]

In May 2009, J.G. Wentworth's parent company, JGW Holdco LLC, entered Chapter 11 bankruptcy protection partly as a consequence of the financial crisis of 2007-08. The company cited "liquidity problems amid a tightening credit market" as the catalyst for filing.[12] In June 2009, JGW Holdco LLC received one hundred million dollars in equity from primary stakeholder JLL Partners, which allowed the company and its subsidiaries to emerge from bankruptcy.[13]

In 2011, J.G. Wentworth and similar business Peachtree Financial Solutions, formed a new holding company, JGWPT Holdings LLC. The two companies continued to operate independently after the transition.[14]

In October 2013, the firm filed for an initial public offering,[6][7] which was offered the subsequent month. The company was initially listed on the New York Stock Exchange under the symbol JGWE.[15]

In 2015, J.G. Wentworth expanded their financial offerings with the purchase of WestStar Mortgage for US$44 million in common shares and cash.[16] In the same year, the company announced a partnership with Visa to offer a prepaid card to customers.[17]

In June 2016, J.G. Wentworth was delisted from the NYSE for failing to satisfy the continued listing rule.[18] Later that month, the company began trading on the OTC Markets Group under the symbol JGWE.[19]

On November 8, 2017, J.G. Wentworth filed for Chapter 11 bankruptcy for the second time in nine years.[20] JGWE stock plummeted as much as eighty-seven percent on 10 November 2017. The company was expected to emerge from bankruptcy in or around January 2018 after coming to an agreement with lenders prior to filing.[21][22]

The company is best known for its American daytime television commercials featuring the character of "Mr. Wentworth". More recent series feature Wagnerian opera singers performing the company's jingle.[23] Taglines include "It's my money and I need it now!" and "It's your money; use it when you need it!"

JG Wentworth has won several domestic and international awards for its television advertising, including a silver Davey award.[24] The "Wagnerian Opera" commercial won two International Summit Awards for Best Humor and Best TV between US$75k and US$100k.[25][26]

In 2019, JG Wentworth reported that it was named in the category of IES Premier Sales Employer by The Institute for Excellence in Sales (IES).[27]

J.G. Wentworth owns and operates under a number of brands. The main three brands owned by J.G. Wentworth are J.G. Wentworth, Peachtree and Stone Street Capital.

Additional brands and subsidiaries include:[28][29]

• Official website