John Oliver took aim at factoring companies on his HBO show and the industry that takes advantage of people with structured settlements.

On Last Week Tonight, he explained that the story grew out of “the JG fucking Wentworth ads” which have been a “pop culture staple” due to the “infuriatingly catchy” jingle that was even part of a Curb Your Enthusiasm storyline.

Oliver said that it’s “generally a red flag when something has a massive ad budget but you don’t know what they do”.

He explained that the company exists because of structured settlements which come to those who have suffered a physical injury or they’re related to someone who has died because of a wrongful action and they are due a settlement.

The settlement is structured into increments, which means they are income tax free and you’ll be supported for the rest of your life.

It’s estimated to impact around 750,000 people in the US, some of whom might want an advance which can be a “bit of a challenge” as once the structure has been set, it’s hard to change it.

But companies can “buy the rights to future payments and in exchange give you a lump sum” and they can take 60% of the money on average.

It’s led to the factoring industry, which is “much bigger than you might think” as these companies buy an estimated $1bn of payments each year yet many people end up “deeply regretting it”.

JG Wentworth was founded back in the 90s, yet none of the founders were named after JG Wentworth. They have become the largest purchaser in the us yet a whole bunch of copycats have grown since.

Many of the people being targeted often “don’t fully understand” what they are signing up for, as they are “likely to have some form of permanent disability”, whether physical or cognitive.

For example, many people in Baltimore who were exposed to lead paint as children have conditions such as irreversible brain damage which meant that they were less sure of the details.

These people are often bombarded with calls and hunted down on social media by agents who want to sign them up, with Oliver calling out the “aggressive sales tactics” that take advantage of them.

“Some companies reportedly employ an army of researchers to plow through court records on the lookout for cases that end with a large settlement,” he said, and often if these people are underage, they will wait until “the second they turn 18”.

He joked that one of the best things about turning 18 is that “you no longer run the risk of getting texted by Drake”.

These people have often been wined and dined and one person was even flown to south Florida strip clubs to tempt him to sign.

“There is a safeguard against exploitation as a judge has to sign off on any transaction,” he said, yet the system is “easily gamed”, as there is “always a fundamental flaw with the set up of this process”.

Oliver explains that as there is no adversary present, it puts the judge in an awkward position, meaning that these hearings take an average of seven minutes to finish, as it’s “not their place to prevent a sale even if they think it’s a bad idea”.

These companies often coach clients for court, and Oliver said that the industy is “less about helping people than about extracting wealth”.

He spoke of some “truly heartbreaking stories” before speaking of small fixes, such as curbing aggressive tactics and insisting that hearings take place where the clients live, as well as bringing in an attorney adviser for when the seller doesn’t fully understand the transaction.

“This industry is just full of predators,” he said, and while these ads “seem benign”, it’s important to remember that these companies “do not have your best interests at heart”.