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Last Week Tonight : Debt Buyers (Holy fucking shit)

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Divvy

Canadians burned my passport
https://www.youtube.com/watch?v=hxUAntt1z2c

Another fantastic episode, but absolutely infuriating

I don't understand how these people live with themselves, making livings off of taking advantage of others. It's one of the sleaziest things I've seen in a while.

The ending is incredible though.

FUCK YOU OPRAH
 

Johndoey

Banned
Thanks for posting the video OP, it's interesting.

But, The Trust is really good, just throwing that out there, it's a good thriller.
 

KNT-Zero

Member
It's somehow ironic that I see this sort ofnad when I'm browsing this thread....

DrU6TTo.png
 

neojubei

Will drop pants for Sony.
There was an episode of this American life about this. Best thing to say when the debt company brings you to court is to say "show me the evidence/proof" and most of these debt companies don't have legitimate proof. They bank on people not showing up so they can get a default judgement and also bank on the ignorance of people. People when they go to court they assume they must pay this debt but as John Oliver stated this isn't going to the original loan or credit card company but to some awful debt collection company. When the debt company cannot show proof in court they will dismiss the case.
 

CoolOff

Member
So, I don't get his statement about the bank "writing off" the debt and then selling it on. As a customer, I'm still aware I have a debt, right? Are there no obligations to tell me who I now owe it to?
 

Moosichu

Member
So, I don't get his statement about the bank "writing off" the debt and then selling it on. As a customer, I'm still aware I have a debt, right? Are there no obligations to tell me who I now owe it to?

I think the video made it clear that these companies don't tend to care about obligations. :p
 

Aiii

So not worth it
During the entire segment I was thinking to myself, "well yeah, I'm not surprised this is a thing."

I mean, the entire US system is telling it's citizens to start working up debt as soon as you're 18 so you can get a "credit score" to get even more proper debt. It's literally build to make sure everyone's indebted for no good reason just so they can actually buy a house.

In most of the rest of the world credit cards are a niche to debit cards and mostly a tool to buy stuff online easily. And when you want to buy a house they look at how much debt you have and the closer to zero, the more you can loan... Not only that, if you have savings you're actually rewarded, crazy that.

The problem with having a system like this in effect (or any economic system really) is that it's pretty much impossible to change once the wheels are in motion, unless you have a total and utter collapse and everyone starts from zero again, which would be dire times for everyone involved for sure.

Regardless, back to the topic, really not surprised that when there's this much debt that there are companies who have found a way to capitalise on it, what are citizens for, if not to exploit and extort for even more money?
 

Bizazedo

Member
I will have to watch this tonight. If I wasn't still working where I am I could tell amazing stories about this subject.
 
So, I don't get his statement about the bank "writing off" the debt and then selling it on. As a customer, I'm still aware I have a debt, right? Are there no obligations to tell me who I now owe it to?

I haven't watched the video yet, but I'd assume the "writing off" is an accounting transaction by the bank which generally would not have any bearing on your legal obligation to repay a debt.

Edit - and yes, if your debt is sold they should be obligated to inform you of who purchased it
 

Beartruck

Member
During the entire segment I was thinking to myself, "well yeah, I'm not surprised this is a thing."

I mean, the entire US system is telling it's citizens to start working up debt as soon as you're 18 so you can get a "credit score" to get even more proper debt. It's literally build to make sure everyone's indebted for no good reason just so they can actually buy a house.

Uh, yeah, no. Your credit score gets trashed if you actually build up a shitload of debt on your credit cards and routinely fail to pay it off. The actual way to build a good credit score is to consistently buy things with a credit card (that you can afford) and pay it off in full every month.

The real problem here is that financial planning is not taught to people. So many people fill their credit card's balance and then just pay the minimum every month.
 

Bizazedo

Member
I watched the video yet, but I'd assume the "writing off" is an accounting transaction by the bank which generally would not have any bearing on your legal obligation to repay a debt.
Basically yes. The bank is obliged by law to consider it a loss. The money is still owed and they still try and collect it.
 

FelixOrion

Poet Centuriate
I love when Oliver's show follows the Colbert Report's spiritual footsteps and actually gets involved in the actual policital and economic machines they lampoon. And they do it way more often too, which is fantastic.
 

retrofool1961

Neo Member
writing off is an accounting/tax thing they can legally do... just like hospitals can charge uninsured people 4X's more than the insurance company, and when that goes unpaid, the hospital writes it off and sells the debt.
 

Bizazedo

Member
writing off is an accounting/tax thing they can legally do... just like hospitals can charge uninsured people 4X's more than the insurance company, and when that goes unpaid, the hospital writes it off and sells the debt.
The government requires the banks write off or "charge off" credit card debts after x amount of time.
 

Trokil

Banned
It is infuriating, but I also have to admit; watching this as a Swiss is always morbidly fascinating. You always think, how can people in a country accept this or live like that.

It's a bit like watching TLC. And of course it also gives you this smug feeling of superiority. I guess it's the same thing for Canadians, maybe a bit more, just because they are neighbors to the US.
 

U2NUMB

Member
But from the beginning you owe the money to some sort of financial institution, and they usually do, no?

I believe this is debt that someone is very much behind to the point where the bank has given up or just considers it a loss and moves on. When it gets to that point you know a debt collector is calling you not the bank. At some point your account was closed and you were notified.

Again I am assuming thats what this is about... the medical stuff might be a little different but not sure. The part where you could technically pay off the debt and it carries on is so wrong on so many levels..
 
What else is there to say?

This piece fits well into the context of;

Civil Forfeiture; https://www.youtube.com/watch?v=3kEpZWGgJks < Shows you how cops essentially rob people legally.

State Legislatures; https://www.youtube.com/watch?v=aIMgfBZrrZ8

Prison; https://www.youtube.com/watch?v=_Pz3syET3DY < Shows you have private prisons make a lot from breaking prisoners down, so they become repeat offenders and in doing so, make more money.

Municipal Violations; https://www.youtube.com/watch?v=0UjpmT5noto < Shows the absurd and costly over exaggerated lengths, petty fees are used to fuck over peoples lives, completely ignoring what people are capable of paying, and in doing so have them become a lot more costly to society, while runing their lives.

Bail; https://www.youtube.com/watch?v=IS5mwymTIJU < Shows you how justice in enacted when poor people cannot afford to pay bail, and in doing so, become criminals by default by proxy due to not having any money. Shows redneck being able to become debt collectors as vigilantes without training, expertise or knowledge, but armed to the teeth.

Public Defenders; https://www.youtube.com/watch?v=USkEzLuzmZ4 < Shows the uphill battle of getting a fair legal representation if you need a defender but don't have money. Shows you, like in this episode how you might have a lawyer who will review your court case in a couple of minutes.

Patents; https://www.youtube.com/watch?v=3bxcc3SM_KA < Shows you how patent trolls extort and sue people and small businesses for whatever amount they are unable to fight the case in court, leaving most to just settle suits.

Marketing to Doctors; https://www.youtube.com/watch?v=YQZ2UeOTO3I < Shows you the pandering and compromised ethics when privatized big pharma gets deep in with doctors and their provisions for subscribing medicine that yields free lunches and other bonuses.

Predatory Lending; https://www.youtube.com/watch?v=PDylgzybWAw < Shows you how unregulated the financial systems are, and how predatory these schemes are. Something that clearly should be regulated.

Student Debt; https://www.youtube.com/watch?v=P8pjd1QEA0c < Of how grotesque the educational debt is in America.

Nutritional Supplements; https://www.youtube.com/watch?v=WA0wKeokWUU < The pathetic lack of oversight by the FDA

Medicaid Gap; https://www.youtube.com/watch?v=5d3nASKtGas < Shows people who desperately need access to health care but can't due to beaucracy and pettyness.

Death Penalty: https://www.youtube.com/watch?v=Kye2oX-b39E < Shows the level falsely held beliefs regarding the virtues of having the death penalty, and their many dark spots like innocents being killed, and the insane cost that is associated with being on death row.

The Lottery; https://www.youtube.com/watch?v=9PK-netuhHA < while you can get many years in jail from smoking a harmless herb, something that is much more chronically life ruining and addictive, betting has little oversight in some places and receives an insane amount of lax regulation as, (once again) poor people get trapped into the predatortial msileading schemes.

Sex Education; https://www.youtube.com/watch?v=L0jQz6jqQS0 < How unqualified morons are allowed to spew poison, bullshit, slut shaming, misogyny, bigotry and shame into teenagers throat by pathetic unscientific abstinence education.

Mental Illness; https://www.youtube.com/watch?v=NGY6DqB1HX8 < How and why people in mental illness are mostly dangerous, takes the wrap for gun control shootings, and end up in prison because nobody can or want to help them.

Prisoner Re-Entry; https://www.youtube.com/watch?v=gJtYRxH5G2k < Shows you how the prison system is not made to rehabilitate or make prisoners post-prison sentence functional members of society.

Credit Reports; https://www.youtube.com/watch?v=aRrDsbUdY_k < How your life is fucked before it even really begins if you have a poor credit rating, and how this rating discriminate against you from buying a home to getting a job to applying for any sort of loan.


Education, Health, Law, Entertainment, Finance, Justice, Rights, Rehabilitation. It doesn't matter the subject. Nearly everything on this list along with todays topic is born from the same systemic problems.
It will take a massive change in public attitude to reform all these problematic institutions. In many of them, private companies and indivduals with a monetary angle (education, health, prisons, public officials, debt collecting, student debt, legal representation) seems to fuck over poor people.
In many others, unqualified individuals like privatized debt collectors, bounty hunters, random people lobbying drugs to doctors and ALEC and its corrupt involvement of local government, seems to display a degree of negligence, malice and misconduct.
 
That was a real eye opening segment, and I was hyped when he said that they bought it to forgive the debt.

This show is awesome, and keeps getting better and better!
 
Great segment. If reforms were put into effect that required more robust documentation, made debts beyond the statute of limitations no longer collectible / owed, established greater oversight of collections practices, etc. then I would have no problems with the concept of a company being able to sell its debt to another company who is willing to take the risk of purchasing it and putting in the effort to try to collect. I guess I'm basically saying that the concept of selling debt is okay in theory, but you have to have good regulation / policies to curb abuse.
 
The best part, these debt buyers can often re-negotiate the terms of the loan, without the consent of the debtor. I fell into some financial trouble two years ago, and as a result had some trouble paying one of my college loans. It was sold twice, and jumped from a 0.43 APR to a 4.85 APR.

No clue how this is legal, all I can say is, pay your fucking bills and don't fall behind on your loans.
 
John Oliver probably has one of the best research teams out there. Most serious news outlets probably dont spend as much time in research as these guys do.
 

The Boat

Member
It's fucking mind boggling and scary how a country supposedly as awesome as the US has so many issues like this. Capitalism gone wild.
 

Arkeband

Banned
I guess I'm basically saying that the concept of selling debt is okay in theory, but you have to have good regulation / policies to curb abuse.

Good thing half of our government wants NO REGYALATIONS!

John Oliver probably has one of the best research teams out there. Most serious news outlets probably dont spend as much time in research as these guys do.

They've had some pretty piss poor episodes, like on Syrian refugees and 911 (discussed in the OT), but more often than not they do their due diligence.
 

Vesmir

Banned
There are debt collection agencies (such as the one I work for) that do not purchase the debt and very much have the proof of burden. Haven't watched this as I just woke up but there are some shady as fuck companies out there. However third party agencies are sent the obligations by the entities the consumer took services from directly, thus its not a matter of whether the person owes it or not. I oversee the municipal side of the company so I really am more than ok going after people who don't pay their DUI tickets.
 

TS-08

Member
Great segment. If reforms were put into effect that required more robust documentation, eliminated default judgments, made debts beyond the statute of limitations no longer collectible / owed, established greater oversight of collections practices, etc. then I would have no problems with the concept of a company being able to sell its debt to another company who is willing to take the risk of purchasing it and putting in the effort to try to collect. I guess I'm basically saying that the concept of selling debt is okay in theory, but you have to have good regulation / policies to curb abuse.

Eliminate default judgments? Speaking generally, how is that a good idea?
 

jadedm17

Member
I watched a special on debt collectors : One office of only six people would talk about their tactics, namely calling your job or neighbors to embarrass and intimidate you into paying.

Know your rights to the best of your ability and prepare for the worst; We're all one bad medical diagnosis from bankruptcy.
Americans anyways.
 

Ploid 3.0

Member
Looks like I know what business to get into as a hobby now (not really). It's stupid how this is able to happen and so easily.
 
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