JG Wentworth Debt Relief Review for 2023
Our team of debt relief industry experts gives it to you straight inside this JG Wentworth debt relief review. We will give you the good and the bad we found in our research about J.G. Wentworth. Reviews from across the internet provided us with the answers to the questions people most frequently ask about this company online.
J.G. Wentworth is a financial services company that provides a variety of services, including structured settlement and annuity purchasing, personal and business loans, and prepaid debit cards. If you’re considering debt consolidation, JG Wentworth should be at the top of your list for companies to review. JG Wentworth is a nationally recognized brand with a unique array of financial solutions available to help consumers save money and get out of debt faster. In certain areas, JG Wentworth commercials have dominated the television landscape over the last ten years on sporting events, awards shows, and more.
But do they deliver on their promise to help you get out of crippling credit card debt? Our team at NoMoreCreditCards.com gathered reviews and reports on their business, checking on websites including Better Business Bureau and Consumer Affairs, along with social sites and common message boards. This research can help you decide how to deal with credit card debt if you find yourself behind on your payments and in danger of defaulting to a collections agency.
How much does JG Wentworth charge for debt consolidation?
How does JG Wentworth affect your credit?
What credit score do you need for a loan?
What is their structured settlement option?
The following will serve as NoMoreCreditCards.com’s comprehensive review of JG Wentworth, a one-stop shop for everything you need to know about their structured settlement and debt relief options.
Here’s a brief review of some of its key features:
- J.G. Wentworth has been in business for over 25 years and has a solid reputation in the industry.
- The company offers a variety of financial services, which may be convenient for customers who need multiple types of financial assistance.
- J.G. Wentworth offers structured settlement and annuity purchasing, which can be helpful for people who need cash now but have a long-term stream of payments.
- The company provides a free quote for structured settlement and annuity purchasing, which can help customers make informed decisions.
- J.G. Wentworth charges high fees for its services, especially for structured settlement and annuity purchasing.
- Some customers have reported pushy sales tactics and misleading information from J.G. Wentworth representatives.
- The company has been involved in several lawsuits over the years, which may raise concerns for some customers.
Overall, if you’re considering using J.G. Wentworth for its financial services, it’s important to carefully weigh the costs and benefits and do your own research to ensure that you’re making an informed decision. It may be helpful to compare J.G. Wentworth’s services with those of other companies to find the best fit for your needs. Check out our top 20 best debt relief companies list for 2023:
About JG Wentworth:
Legal Name: The JG Wentworth Company, J.G. Wentworth Debt Settlement, LLC
Who owns The JG Wentworth Company? Publicly traded company operated by JGWPT Holdings LLC
Industry: Structured settlements/debt relief/annuity purchasing
Corporate Address: 1200 Morris Drive Chesterbrook, PA 19087
Phone: (866) 688-9669
Licensed? California Finance Lender License/Registration #: 60DBO-110658
Where is JG Wentworth Available? Debt settlement is offered by JG Wentworth in the following states: Alabama, Alaska, Arkansas, California, Florida, Idaho, Kentucky, Massachusetts, Michigan, Missouri, Montana, Nebraska, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, South Dakota, Texas, and Virginia
Certifications and Accreditations: BBB Accredited Business (A+), American Fair Credit Council (AFCC)
What is JG Wentworth?
JG Wentworth is a financial services company that offers debt relief and structured settlement programs to help consumers who are experiencing financial hardship or need access to cash. This support comes in the form of structured settlements, allowing a claimant in a lawsuit to receive their settlement in a series of payments over time, instead of as a lump sum payment made upfront. Additionally, JG Wentworth offers debt relief solutions that claim to help you lower your total debt and pay off your unsecured debt faster.
Lastly, JG Wentworth offers annuity payment purchasing. An annuity is a contract between you and an insurance company requiring the insurer to make payments to you immediately or in the future. This is a form of investment where you buy an annuity by making either a single payment or a series of payments, with terms requiring repayment over time.
How Does JG Wentworth Debt Relief Work?
Debt relief programs are designed to help you streamline the process of paying back debt owed via credit cards, loans, and other financial commitments. In JG Wentworth’s debt relief program, you will start by contacting JG Wentworth to discuss specifics of your financial situation, including income, hardships, debt types, credit score, and more. JG Wentworth will assess your overall debt to determine if you qualify for a debt relief program. If approved, you will make one monthly program payment into a special-use savings account.
Like other debt relief companies, JG Wentworth’s team of debt negotiators will begin working with your creditors to negotiate lowered total debt amounts with the promise of structured payments. It is possible to gain significant savings by lowering your total debt amount with a settlement program, but understand this may negatively impact your credit score due to past due payments and collection accounts on your credit report.
Payments are made to your JG Wentworth savings accounts. As you accumulate money in your program account, JG Wentworth will begin negotiating with your creditors to settle your debts. It is important to understand that this is where JG Wentworth makes its money as your intermediary. Each month when a payment is contributed to the savings account, JG Wentworth takes a fee out of that contribution for its services. When the savings account reaches thresholds sufficient to negotiate the amount with one of your creditors, and the creditor agrees to the payment, the money is taken out of your savings account and given to that creditor, closing out your debt with them. These savings accounts cannot be withdrawn from, as their purpose is solely to help you pay off creditors rather than provide additional access to funds.
How Does a JG Wentworth Loan Work?
JG Wentworth purchases future payments of structured settlements, annuities, and lottery winnings in both partial and full increments. This is a mutually beneficial situation for both the seller of the structured settlement and JG Wentworth. As a hypothetical example: If a person has a structured settlement that contains future cash payments that would total $50,000 and JG Wentworth quotes them at an 8% discount rate, that rate is applied to their future payments, resulting in a present value of $40,000. That means they will receive $40,000 (less any additional transaction fees) rather than the full $50,000. In other terms, the buyer gets a $10,000 return immediately for fronting the future money. Structured settlements are a type of annuity that allows a claimant in a lawsuit to receive their settlement in a series of payments over time, instead of as a lump sum payment made upfront. Structured settlement annuities are usually the result of a personal injury or wrongful death. These annuity payments are not subject to income taxes, and the claimant decides the payment schedule when the settlement is drafted.
How Much Does JG Wentworth Charge for Debt Consolidation?
JG Wentworth charges between 9% and 15% for debt relief services and 8% to 22% for structured settlements, according to their website. It is important to note that structured settlements are not debt consolidation. These charges are applied to the total amount of debt you are claiming with them in a debt relief program. When you sell part or all of your structured settlement payment stream to JG Wentworth, you are essentially transferring your payment rights to the purchasing entity in exchange for receiving a lump sum payment.
Can You Still Use Your Credit Cards While Enrolled in a JG Wentworth Debt Relief Program?
If your credit card debt account has been sent to collections, you will be unable to use the credit card tied to your account. The card itself will be deactivated because it is no longer tied to your line of credit offered by the creditor. The creditor has essentially “sold” your debt to a collections agency, which will then attempt to recover as much money you owe as they can. When JG Wentworth steps in to negotiate a reduced rate with the collections agency, the credit line is already severed. Your credit card is permanently disabled, and you will not be able to use it while you make payments in the debt relief program.
How Quickly Can You Pay Off Your Bills with JG Wentworth?
According to the JG Wentworth website, it will take approximately 24-48 payments (one per month) to pay off your debt relief program. This means you can expect a minimum of two years of payments (a common loan term) to completely cover your debt obligations and be released from the program. Failure to make your monthly debt relief program payments can result in significant delays to your debt recovery and may garner additional fees and legal issues.
If you have spending compulsions that may prevent you from making the monthly payments, consider seeking help from the SAMHSA program, in addition to debt settlement or consultation. Debt relief companies like JG Wentworth will have trouble negotiating on your behalf if you demonstrate a track record of failure to make payments promptly.
What is the Difference Between Debt Management, Debt Settlement, and Debt Relief?
Debt management doesn’t involve a settlement amount between a debtor and a creditor or collections agency. In debt management, a financial professional or advisor will work with you to form a plan from being behind on monthly payments to being credit debt free. In this scenario, you often save money on interest fees by paying more than the minimum monthly payments while paying off one credit card at a time.
Debt settlement differs from debt management in that debt settlement becomes an option only after you have fallen behind monthly payments to the point where your credit accounts are being sold to collections agencies by your creditors. In this scenario, it is no longer an option to keep your credit card account in good standing. Therefore you hire a debt settlement company to negotiate on your behalf with debt collectors. You pay the negotiating company a monthly payment, and the negotiating company works with the collections agencies to secure agreements.
Lastly, debt relief is a more general term for debt consolidation and debt settlement. Companies that use debt relief as their service terminology often offer loans and can work to come to an agreement to cover the debt.
What Types of Accounts Qualify for JG Wentworth Debt Relief?
- Unsecured debts including credit card debt, store card debt, and more
- Medical bills in certain situations
- Personal loans
- Unsecured loans (loans provided without a lien on personal property or collateral, such as a vehicle or a home mortgage)
- Third-party collection accounts
Note: JG Wentworth does not offer debt settlement for secured debts such as loans placing a lien on personal property or debts tied to physical assets. Examples of secured debts include mortgages and car loans.
What Credit Score Is Needed for JG Wentworth?
No credit score minimum is listed on JG Wentworth’s website or elsewhere. This is a common practice among debt relief companies because it is easier to provide a decision for the debtor by gathering all of their information. Acceptable credit scores can vary depending on the applicant’s financial situation.
What are the Debtor Qualification Requirements for JG Wentworth?
An applicant must have over $10,000 in unsecured debt. This is the only requirement listed on JG Wentworth’s website. However, common requirements for debt relief include the following:
- Reduction or loss of income
- A sudden increase in expenses, including unexpected accidents and property damage
- Medical conditions and bills
- Divorce and legal fees
- Increased interest rates on monthly payments
- Automobile and car accidents are not covered by insurance
Is JG Wentworth Debt Relief and Structured Settlements Legitimate?
While JG Wentworth has filed for bankruptcy twice, with the second time in 2017, the company has been able to overcome financial hardships with what seems to be legitimate business practices. JG Wentworth has a single listing on BetterBusinessBureau.com that boasts a 4.24/5 star rating out of 124 customer reviews. There are 83 complaints closed over the last 3 years, with 34 coming in the last 12 months. Complaints are mostly centered on their aggressive marketing communication tactics, with the overwhelming majority of complaints mentioning that JG Wentworth contacts them via phone and email numerous times per month, sometimes even years after the debtor completed a debt relief program with them.
JG Wentworth’s excuse for this aggressive marketing behavior is that their systems are slow and it takes time for a customer to be removed from their database.
Consumer Affairs reviews for JG Wentworth are more kind than the complaints on BBB, with 4.3/5 stars based on 61 ratings.
Overall, JG Wentworth appears to be a legitimate business with some potentially undesirable marketing tactics and high-interest rates common with predatory loan or payday offers. While debt relief options from JG Wentworth might be best for you, you may need to prepare yourself for long-term communications with JG Wentworth.
Is JG Wentworth Licensed?
JGW Debt Settlement, LLC claims to be licensed/registered to provide debt settlement services in states where licensing/registration is required. No additional information is provided on their website or review pages. Their primary business is licensed with a California Finance Lender License/Registration #: 60DBO-110658
Will JG Wentworth Debt Relief Hurt My Credit Score?
As with any other debt settlement or debt relief program, your credit score will be adversely affected at the onset of a settlement agreement with any institution negotiating a reduced debt amount with your creditors. This is because you are telling creditors that you cannot afford to pay them back in full, and entries to your credit report will dock your score during this time. However, if you are in over your head with credit card debt and need a third party like JG Wentworth to step in and negotiate for you, rehabbing your credit score should be a secondary goal to paying off your debt in full.
If you make your single monthly payment on time each month, you will eventually pay off your credit and other unsecured debts, and your credit score will begin to improve as you continue to make your payments. Reliability in your credit report can be restored over time. With typical debt relief programs lasting anywhere from two to five years, steady payments over this period will show improvement, ultimately allowing your credit score to bounce back slowly.
JG Wentworth Debt Relief Program Pros
- Best-price guarantee
- Customized options
- Free quotes
- Flexible monthly payment options, catered to your finances and income
- No pre-payment penalties
- Erase late payments & fees
- 31 years of business experience
- Flexible with program debt types
- A+ BBB rating
- American Fair Credit Council (AFCC)
JG Wentworth Debt Relief Program Cons
- Credit scores can decline, and late payment credit marks and collections accounts will remain on your credit report for up to 7 years
- Late fees and collection costs can increase your account balance
- JG Wentworth may have minimal requirements for their program including credit score
- Unpaid monthly debt settlement fees leave the debtor vulnerable to lawsuits
- Attorney appointment and protection must be handled by the debtor
- Additional tax requirements are possible in a settlement
- A $10,000 minimum unsecured debt requirement may prevent you from qualifying
JG Wentworth appears to offer legitimate debt relief solutions, although online complaints from verified customers center on their aggressive marketing communication tactics. The company has overcome bankruptcy twice but has been in business for over 31 years. Reviews found on websites like Better Business Bureau, Trustpilot, Glassdoor, and others paint a picture of resolution for debtors. With all of this evidence, we caution debtors to protect themselves from over-saturation of marketing from JG Wentworth, but wouldn’t discourage those with high credit card debt from seeking help from this company.
If you are in over your head with credit card debt and other types of debt but haven’t yet defaulted on any credit lines, consider debt consolidation (JG Wentworth does not offer consolidation) and debt management options before contacting debt settlement and debt relief companies. Be sure to weigh the pros and cons of several businesses before committing.
Contact us at (877) 332-8007 if you have any questions or would like to discuss your options at greater length.
- Consumer Affairs, https://www.consumeraffairs.com/finance/jg-wentworth-debt-relief.html
- JG WentWorth, https://www.jgwentworth.com/our-debt-relief-program
- TrustPilot, https://www.trustpilot.com/review/jgwentworth.com
- BBB.org, https://www.bbb.org/us/pa/chesterbrook/profile/financial-services/jg-wentworth-0241-80004991
- Crixeo, https://crixeo.com/personal-loans/jg-wentworth-review/
- Retirement Living, https://www.retirementliving.com/reviews/jg-wentworth-debt-relief
- Funding Hero, https://www.fundinghero.com/debt-consolidation/j-g-wentworth/
NoMoreCreditCards.com does its best to provide factual and truthful information aimed at helping the public by giving honest debt relief, settlement, and consolidation reviews. However, please email us at Info@NoMoreCreditCards.com if you believe any of the information in this JG Wentworth review is inaccurate, and we will make appropriate edits. Always do your research, and do not rely solely on the information provided in this review. We are not responsible for the results of any program you choose to join. Check multiple sources for reviews, including your state’s AG office, FTC, and BBB. Reviews about JG Wentworth on Yelp and Reddit may also be helpful.