- Encore Capital Group
Encore Capital Group Type Public (NASDAQ: ECPG) Industry Financial services,
Debt buying & recovery
Founded 1953 Headquarters San Diego, California, United States Key people J. Brandon Black,
President & CEO
Revenue US$ 381.3 million (FY 2010) Employees ~1,900 (YE 2010) Website www.encorecapitalgroup.com
Encore Capital Group, Inc. (NASDAQ: ECPG) is a systems-driven purchaser and manager of charged-off consumer receivable portfolios, or a debt buyer, and is the largest publicly-traded debt buyer (by revenue) in the United States. Founded as Midland Credit Management, Inc. in 1953, the company was renamed Encore Capital Group, Inc. in 2002. Encore Capital is headquartered in San Diego, California, and is a publicly traded NASDAQ Global Select company and a component stock of both the Russell 2000 and Wilshire 4500.
Encore Capital Group’s wholly owned operating subsidiary, Midland Credit Management, Inc., was founded in 1953 and was incorporated in Kansas in September 1953. In 1998, an investor group led by Nelson Peltz and Peter May (members of Triarc Companies, Inc. management) and Kerry Packer of Consolidated Press International Holdings Limited, acquired a majority interest in its operations. In 1999, this investor group formed a holding company, MCM Capital Group, Inc., which was later renamed Encore Capital Group, Inc. in April 2002. The company was incorporated in Delaware in April 1999 as MCM Capital Group, Inc. and changed its name to Encore Capital Group, Inc. in April 2002. The company completed its initial public offering of 2,250,000 shares of common stock in July 1999.
Encore Capital purchases portfolios of defaulted consumer receivables at deep discounts to face value and uses a variety of operational channels to maximize its collections from these portfolios. It specializes in the collection, restructuring, resale, and securitization of the acquired receivable portfolios. The company manages its receivables by partnering with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies, commercial retailers, auto finance companies, and telecommunication companies, and may also include receivables subject to bankruptcy proceedings, or consumer bankruptcy receivables.
Encore Capital has one of the industry’s largest distressed consumer databases containing information regarding approximately 20 million consumer accounts. From inception through December 31, 2010, the company has invested approximately $1.8 billion to acquire 33.0 million consumer accounts with a face value of approximately $54.7 billion.
In addition, Encore Capital provides bankruptcy support services to some of the largest companies in the financial services industry through its wholly owned subsidiary, Ascension Capital Group, Inc. Leveraging a proprietary software platform dedicated to bankruptcy servicing, Ascension’s operational platform integrates lenders, trustees, and consumers across the bankruptcy lifecycle.
In 2009, Encore Capital was ranked in the top 10% of San Diego County public companies for financial performance in the Bloomberg Company Strength Index (released on March 12, 2010)
Additional offices: The company's operations include sites in
The company currently employs about 1,900 people (as of December 31, 2010) across these locations, and additionally possesses a large third-party network of collection agency and litigators that spans the United States. Total employment in India increased 36 percent in 2010 to 1,213 while total employment in the U.S. increased 7.3 percent to 678.
- J. Brandon Black, President and CEO 
- Paul Grinberg, Executive VP and CFO 
- Jim Syran, Senior VP, Operations and Chief Marketing Officer
- Christopher Trepel, Ph.D., Senior VP, Corporate Strategy and Analytics
- Ashish Masih, Senior VP, Legal Collections Operations
- Ronald E. Naves, Jr., Senior VP, General Counsel and Corporate Secretary
- Olivier Baudoux, Senior VP, Information Technology and CIO
- Blair Korschun, Senior VP and General Manager, Ascension Capital Group
The company has recently hired Steve Gonabe as Senior VP, Human Resources and Brian Enneking as VP, Consumer Marketing.
In 2010, Encore Capital paid $362 million, to purchase $10.9 billion in face value of debt, compared to $256.6 million, to purchase $6.5 billion in face value of debt in 2009. Of this $362 million, $342 million was spent on credit card portfolios, $12.2 million on consumer bankruptcy accounts, and $7.8 million on telecom accounts.
The Company's revenue increased 21% in 2010 to $381.308 million. Gross collection increased to $604.6 million in 2010, a 24% increase from 2009. Collection sites accounted for $268.2 million, while legal collections accounted for $266.7 million. External collection agency forwarding accounted for $68 million in gross collections.
Consumer Bill of Rights
Encore Capital has launched an industry-first Consumer Bill of Rights, a document that codifies the company's commitment to conduct business ethically, engage in respectful and constructive dialogue with consumers, and play a positive role in consumers' financial recovery.
Key tenets of the Bill of Rights include:
- Contacting consumers in a timely and effective manner, resolving accounts quickly and honestly, and ensuring collection practices that promote settlement and preserve dignity;
- Establishing forgiveness and hardship guidelines, including the cessation of collection efforts when permanent hardship is demonstrated;
- Suspending interest or fees when a consumer is making timely payments on an established plan;
- Safeguarding consumer information;
- Implementing the fair and reasonable use of litigation to resolve an outstanding obligation, and seeking to avoid litigation whenever possible; and
- Committing to not resell defaulted consumer accounts in the normal course of business.
- Midland Credit Management, Inc. - Kansas
- MRC Receivables Corporation - Delaware
- Midland Funding NCC-2 Corporation - Delaware
- Midland Portfolio Services, Inc. - Delaware
- Midland Funding LLC - Delaware
- Ascension Capital Group, Inc. - Delaware (Bankruptcy Servicing) 
- Midland India LLC - Minnesota
- Midland Credit Management India Private Limited - Delhi, India
- Midland International LLC - Delaware
- Midland Credit Management (Mauritius) Ltd - Mauritius
- ^ , Financial Statements for Encore Capital Group, Inc. (ECPG)
- ^ , tmcnet.com Legal Featured Article, dated April 13, 2011
- ^ , Encore Capital Group - Investor FAQs
- ^ , Encore Capital Group, Inc., Form 10-K, filed on 14-Feb-2011
- ^ , Bloomberg Company Strength Index for San Diego County
- ^ , Encore Capital Group - Locations
- ^ , Press Release on insideARM.com, dated Feb 15, 2011
- ^ , Encore Capital Group - Leadership Team
- ^ , Forbes.com Profile - J. Brandon Black
- ^ , Forbes.com Profile - Paul Grinberg
- ^ , Yahoo Finance Press Release, dated April 15, 2011
- ^ , insideARM.com Press Release, dated Feb 15, 2011
- ^ , insideARM.com Press Release, dated Feb 15, 2011
- ^ , Bloomberg Businessweek Press Release, dated March 21, 2011
- ^ , Encore Capital Group - Consumer Bill of Rights
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