John Oliver Proves He’s The Next Oprah By Buying $15 Million In Medical Debt And Forgiving It All

06.06.16 3 years ago 8 Comments

From Jon Stewart’s final time behind the desk on The Daily Show to Jimmy Kimmel’s Back to the Future reunion with Michael J. Fox and Christopher Lloyd, late night television has gifted viewers with some truly memorable gems in the past year. Many of these were courtesy John Oliver’s fantastic one-night-a-week Last Week Tonight on HBO, where the former Daily Show correspondent turned show host has employed equal parts intelligence, wit and passion for subjects as varied as the Paris attacks and Donald Trump. So what’s the British comedian’s next target? Television icon Oprah Winfrey by way of the shady business of medical debt selling, buying and collection.

Oliver and the Last Week Tonight writing team decided to tackle debt buying-companies on their most recent episode. If you haven’t heard of the business of debt buying, or any of the companies highlighted by the 20-minute segment, you’re not alone:

“Debt buying companies like [Encore Capital Group, SquareTwo Financial, PRA Group and Asta Funding, Inc.] that you’ve probably never heard of have amassed a huge amount of Americans’ debt. In fact the largest, Encore Capital Group… tell investors that one in five consumers either owes them money now, or has owed them money in the past. Which is incredible.”

What follows is a detailed, point-by-point deconstruction of an industry that — despite numerous, repeated lawsuits and on-the-books federal regulations — tends to operate in a shadowy manner. By way of explanation, Oliver offers a rather simple example of what the process companies selling, buying and reselling an individual’s debt might look like:

“Let’s say you have a $1,000 credit card debt that you can’t pay. At a certain point, your bank might write off the [debt] on its taxes, and then to make just a little extra money, sell it off to a debt buyer for a tiny fraction of the cost. Maybe $50, and that debt buyer can then come after you for the full original amount. And if it can’t collect, potentially it can then resell that debt for a fraction of what it paid to someone else who can still come after you for the original amount. Or sell it for a fraction of what it paid, and so on and so on and so on.”

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