Law and regulation

Whataburger Drops Lawsuit Against NCO

Published November 26, 2012, 10:24 a.m. EST

1 Min Read

Whataburger Restaurants LLC has dropped its lawsuit against collection agency giant NCO Financial Systems.

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The hamburger chain filed the suit in August in an effort to stop ongoing collection calls made to its San Antonio corporate offices to an unidentified employee to pay up on a debt allegedly owed. There were no details in the suit about the type of debt or the amount allegedly owed.

In the suit, Whataburger said NCO's collection efforts amounted to a “campaign of harassment against Whataburger that is unreasonable ... and reckless.”

“We resolved our differences and the parties no longer have a dispute,” Michael Gibbs, Whataburger's general counsel, said in a statement.

NCO is based in Horsham, Pa. Company officials were not immediately available for comment. In its 2011 annual report, NCO said its collection unit accounted for $1.2 billion in revenue, down 7% from 2010. The company's overall revenues totaled $1.54 billion last year, down 2% from the previous year.

Privately held Whataburger employs more than 400 people at its headquarters. Overall, it has more than 22,000 employees.

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