Encore Capital Group, and its wholly owned subsidiaries Midland Credit Management, Inc. and Midland Funding, LLC, has obtained a favorable federal court ruling approving the settlement of a national class action lawsuit involving the company's legacy affidavit process, company officials announced.
"I am extremely pleased that Encore is able to put this matter in the past and resolve nearly three years of litigation in a fair and equitable way for consumers and the company. As the judge indicated at the fairness hearing, there have been many 'rash' allegations made against the company that simply had no basis in fact," Brandon Black, Encore president and CEO, said.
The original lawsuit, called Brent, was filed in 2008 and alleged that affidavits filed in debt collection lawsuits were defective because the person who signed the affidavits lacked personal knowledge of the underlying debts.
In 2009, the company made changes to its affidavit process, including revised language to make it clear that the signers' knowledge was based upon a review of the company's business records.
"After years of litigation by multiple plaintiffs, there was no evidence that the company's account data were false. The resolution of this case involved simple process improvements and language changes to Encore's affidavits that would allow the company's account data to be admitted properly into court," Ronald Naves, Encore senior vice president, General Counsel and Corporate Secretary, said. "The alleged defects in the affidavits had no impact on whether or not the debt was owed," Mr. Naves added.
