NEW YORK–Any credit union that has ever made a loan is also familiar with the collections process. And while highly regulated CUs must comply with numerous laws related to collections, the same can’t be said for other collections companies, especially those that buy debt.
Americans got a look at how the collections industry works during a segment on HBO’s “Last Week Tonight,” which is hosted by John Oliver. Oliver spent the segment lampooning and roasting various collections practices. And to demonstrate just how easy it is to get into the business, Oliver even formed his own company, Central Asset Recovery Professionals, or CARP, and then bought $14.9 million worth of medical debt for just under $60,000.
Mr. Oliver said it had cost $50 to create his company, after which he received the portfolio offering the names, current addresses and Social Security numbers of about 9,000 people.
If you haven’t seen what happens next, you can watch the segment here.