Encore Capital Responds To Minnesota AG's Allegations

In response to Minnesota Attorney General Lori Swanson's allegations in a legal action announced Monday (see story), debt buyer Encore Capital Group sent the following statement to Collections & Credit Risk:

"Encore Capital Group and its wholly owned subsidiaries, Midland Credit Management, Inc. and Midland Funding, LLC, take the allegations made by Minnesota Attorney General Lori Swanson very seriously.

The complaint appears largely to restate concerns raised in a 2008 lawsuit against the company, which was recently settled in principle. As a result of that case, Encore modified its affidavit process in 2009 and believes that its current practices are legally sound. The company looks forward to working with Attorney General Swanson to resolve this matter.

Encore and its subsidiaries strive to work with consumers to help them resolve their debt, but because 95 percent of consumers ignore letters sent by the company, the legal channel is often the only remaining option.

On March 21, 2011 Encore Capital Group launched an industry-first "Consumer Bill of Rights" (see story) formalizing the company's commitment to treating consumers with respect and integrity and calling on the entire industry to adopt the same best practices."