John Oliver on factoring companies: This industry is full of predators'

"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."

"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 wh"

Structured settlements provide income tax-free payments to people who suffered physical injury or whose relatives died due to wrongful action. Payments are arranged in scheduled increments, supporting recipients for life, and the process can be difficult to change once set. Factoring companies buy the rights to future payments and offer a lump sum in return, commonly taking around 60% of the money. The industry affects an estimated 750,000 people in the United States and is larger than expected, with about $1 billion of payments purchased each year. Many recipients do not fully understand the terms, especially when disability or cognitive impairment reduces comprehension. Aggressive marketing and targeted outreach can pressure vulnerable people into signing.

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