John Oliver now holds the American record for largest single giveaway in history, doubling Oprah’s “you get a car!” record – but Oliver did it by forming a debt-collection agency and buying up the debt of Americans who’d defaulted on the sky-high expenses from life-threatening illnesses, then forgiving the debts.
The sums themselves are “zombie debts” – debts that have been long written off and generally don’t have to be paid, which are bought up by collection firms that terrorize their victims and embroil them in difficult-to-navigate litigation that they must execute perfectly, or the debts are resurrected and collected through paycheck confiscation.
Oliver’s segment reveals that while some state houses have made it easier for medical debts to be written off, others have passed laws giving more power to the debt-collection industry, while taking away penalties for abuse and creating the assumption that debt-collectors are in the right (and removing the assumption of innocence for people in debt). He also goes to a debt-collectors’ conference and captures candid footage of industry professionals joking about bullying their victims and ruining their lives.
Oliver’s fake-real debt collection firm, Central Asset Recovery Professionals(CARP, named for the bottom-feeders), cost $50 to incorporate. He was able to buy $15M in debt for less than $60K.
