In referring to factoring exchanges as a "shell game", Rhonda Bentzen has returned to the blogging scene with an apparent release of "pent up anger" that runs contrary to what she has stated in the past is unacceptable behavior and her own "sensitivities".
According to Wikipedia, "the shell game (also known as Thimblerig, Three shells and a pea, the old army game) is portrayed as a gambling game, but in reality, when a wager for money is made, it is a confidence trick used to perpetrate fraud. In confidence trick slang, this swindle is referred to as a short-con because it is quick and easy to pull off".? Thus Ms. Bentzen has made a pretty strong accusation if I may say so.
To dispel any perceptions of bias, before I continue I am going to make the following disclosure. Neither this author, nor 4structures.com, LLC has any ownership interest in a factoring exchange, factoring auction site, factoring company or factoring broker.
The Bentzen Financial Blog published by Rhonda Bentzen on typepad.com claims as fact (among other things):
A. Factoring exchanges "tout themselves as being superior by virtue of the fact that they collect an annuitant?s details and then ?shop? several funding companies to get the ?best? deal. On the surface, the business model appears sound; the more firms involved, the better the deal.? Well, not exactly!"
Comment:? Ultimately the consumer must shop around if they hope to get the best price, using a "factoring exchange" website, "factoring auction" website, or otherwise. I covered this in this video podcast.???
Bentzen Financial is just one choice in a sea of choices , although I will say categorically, that while I once referred business to Rhonda Bentzen, based on my personal experience, relating to factors (pun not intended) that are important to me as business person, I would personally not do business with Rhonda Bentzen or refer any of my clients to her (or knowingly, to any entity that she is associated with). You are free to make your own choice who to do business with, for your own reasons.
B. "There?s a good reason that the exchange companies don?t openly advertise the factoring firms they deal with".
Comment: ? Artful use of innuendo*. Does Ms. Bentzen advertise her funding source(s)? Has Ms. Bentzen advertised her funding source in the past?? Is that stated anywhere on the Bentzen Financial website?? One possible reason an auction site might not want to advertise its funding sources is that they consider their funding sources proprietary, they adhere to a standard of privacy, and they don't want their funding sources to be pirated by competitors. Not to mention the funding sources themselves may wish privacy.
*? "It is with little fanfare that I hereby wrap up this particular blog.? It was a fun experiment that unfortunately morphed into something I never wanted; a never-ending personal defense of senseless rhetoric, innuendo?and unfounded accusations".? Rhonda Bentzen former blog January 31, 2011? (emphasis ours)
C. "In that respect, my understanding is that the larger factoring companies typically bid on these deals when they see an opportunity or need product to complete a securitization.? We all know who they are.? Once again, they are the ones that are infamous for pressuring and manipulating annuitants to enter into a transaction, convincing annuitants to sell more of their payments than needed and actively soliciting annuitants into repeat deals"
Comment:? As the late Ronald Reagan once punctuated a debate "there you go again...". Here is a link to a June 24, 2010 blog post by Settlement Quotes' LLC Andrew Cravenho called "Silly Rumors", believed to be in response to? something Bentzen said or wrote on the same subject last year. On a lighter note I observed? that Ms. Bentzen has on several previous occasions referred to Cravenho as my "pet" although (1) he is not (2) he is not a domestic animal; (3)doesn't resemble a domestic animal and (4) this author has written favorable comments about others in the factoring industry.
?D."The truth of the matter is that exchange brokers usually just secure a price, get their commissions, and then walk away from the annuitants".
Comment:? If Ms. Bentzen has proof of this, why wouldn't it be in the public interest for her to simoply expose it by naming names and supplying the proof?? Or give it to the mainstrream press to investigate.
E. "Bentzen Financial competes with these exchanges on a regular basis and the rates they have access to are no better than ours"
Comment:? Yet in March 2008, Rhonda Bentzen stated? "A price is just a price, something that any self-serving person could claim to have the best of" when faced with increased competition from other factoring companies and brokers, large and small,? who were simply doing a superior job applying the Internet to marketing their businesses to clients and prospects both in and out of the structured settlement industry.
F. Further, the annuitant deals with us from start to finish and we guarantee that we will treat your client with honesty and integrity.
Comment: Normally a harmless statement, but taken in the context of a blog post called "Shell Game" (see above), the reasonable implication is that Bentzen is saying that she practices honesty and integrity and the factoring exchanges or factoring auction sites do not.
Conclusion:? Competition is healthy for selling structured settlement annuitants, IF they choose to shop around.? I know of one annuitant who was too far along in the process before they called and the need for cash so great to prevent foreclosure that he went with one company's 20.62% discount rate as opposed to a more financially favorable deal that was able to be obtained by shopping. He couldn't wait another 45-60 days (from restarting the process) when the hearing on the first option was the following week.
Let's see if Settlement Quotes, LLC, other factoring auction sites and Bentzen's competitors enter Ms. Bentzen's debate
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