Encore Capital Group
| Company type | Public |
|---|---|
| Industry | Debt purchasing |
| Predecessor | Midland Credit Management, Inc. |
| Founded | 1953 |
| Headquarters | San Diego , United States |
Key people | Ashish Masih (President and CEO) |
| Products | Debt purchasing |
Encore Capital Group, Inc. is a debt purchasing company publicly traded and headquartered in San Diego, with operations throughout the United States. It is listed on the NASDAQ Global Select Market under the ticker ECPG and is included in the Russell 2000, S&P SmallCap 600, and Wilshire 4500 indices.
History
The foundation of Encore Capital’s debt acquisition activities lies with its subsidiary, Midland Credit Management, Inc., which was established and incorporated in Kansas in 1953. In 1998, a consortium of investors led by Nelson Peltz, Peter May, and Kerry Packer gained majority ownership. Subsequently, they created a Delaware-incorporated holding company in April 1999 named MCM Capital Group, Inc., which was later renamed Encore Capital Group, Inc. in April 2002. The company launched its initial public offering in July 1999, issuing 2.25 million shares. Encore Capital is recognized as the largest publicly traded debt buyer in the U.S. by revenue.
Since 2009, Ashish Masih has held the positions of President and CEO.
In June 2013, Encore expanded by acquiring Asset Acceptance Corporation, a debt buyer based in Michigan. The following year, it further grew through the purchase of Atlantic Credit & Finance located in Virginia.
In January 2015, New York State Attorney General Eric Schneiderman filed a lawsuit against Encore alleging unethical conduct. This resulted in a $675,000 fine and the annulment of more than 4,500 court judgments previously obtained against borrowers.
By September 2015, both Encore and its competitor Portfolio Recovery Associates were accused of breaching the Fair Debt Collection Practices Act and the Dodd–Frank Wall Street Reform and Consumer Protection Act. The allegations centered on filing lawsuits without intending to substantiate debts, frequently winning cases by default when consumers failed to respond. The Consumer Financial Protection Bureau (CFPB) took enforcement action against Encore for deceptive practices such as submitting false information and using robo-signed court documents. As part of the settlement, Encore paid $42 million in consumer refunds, incurred a $10 million penalty, and agreed to cease collection efforts on debts exceeding $125 million.
On June 6, 2017, Encore introduced Money Matters, a financial education initiative that utilizes employee volunteers to provide instruction to high school and college students.
In 2018, Encore completed the full acquisition of Cabot Financial, a debt purchasing firm based in the United Kingdom.
In September 2020, the CFPB initiated legal proceedings against both Encore and Cabot Financial. By October 2020, Encore consented to pay over $78,000 in consumer restitution along with a $15 million civil money penalty. The agreement also subjects the company to five years of regulatory oversight under a consent order resolving additional litigation.