Encore Capital Group, and its wholly owned subsidiaries, Midland Credit Management Inc. and Midland Funding LLC, disagree with the allegations made in the complaint filed by the Texas Attorney General.
The Texas complaint largely restates allegations raised in a 2008 lawsuit called Brent, which alleged that affidavits filed in debt collection lawsuits were defective because the person who signed the affidavits lacked personal knowledge.
Contrary to the Texas Attorney General's suggestion, the alleged defects in the affidavits never resulted in judgments against people who did not owe the debts.
In fact, the judge in the Brent case ruled there was "... no evidence that the amount of the debt, the fact that it is unpaid, or other vital account information, is false."
Indeed, the court also stated Midland "… could easily prepare a form affidavit that achieved the same goals without being misleading by reflecting the truth, plain and simple... they could base it on the accuracy of the records kept and the accuracy of the data."
In 2009, the company adjusted its affidavit process to comply with the court's direction and Encore is confident that its current practices are legally sound.
The fairness hearing regarding the 2008 Brent lawsuit settlement is scheduled for Monday.
The company is certain of the validity regarding the underlying debts at issue.
Encore believes that the judge, after examining all of the facts and evidence, will support the company's position and formally approve the settlement.
The company intends to continue to cooperate with the Texas Attorney General's Office and seeks to resolve its lawsuit.
