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Encore Capital Group Inc., a bad-debt buyer, today reported net income of $6.6 million for the second quarter ended June 30, a 6% increase from $6.2 million in the year-ago period.
The company paid $82 million during the quarter to purchase bad-debt portfolios with a face value of $1.9 billion. According to a 10-Q filing with the SEC, all of the portfolios purchased in the quarter were comprised of credit card accounts.
In the year-ago period, Encore Capital, based in San Diego, paid $52.5 million to purchase portfolios with a face value of $1.8 billion. Gross collections for the second quarter totaled $122.4 million, a 20% increase over the $102.1 million in the same period of 2008. Excluding portfolio sales, collections were $121.6 million, a 24% increase over the $98.5 million in the same period of the prior year.
Collections were up in all channels for Encore Capital, with collection sites accounting for $44.7 million, up 15%; legal collections bringing in $61.5 million, up 25%; and collection agency outsourcing accounting for $15.5 million, up 55%.
