Encore Capital Group Inc

Encore Capital Group operates one of the world’s largest debt collection and debt purchasing businesses, buying portfolios of defaulted consumer debt for pennies on the dollar and then pursuing collection. Its primary business model involves extracting payments from consumers on debts that are often old, disputed, or unverified.

The Consumer Financial Protection Bureau (CFPB) has taken repeated enforcement action against the company for deceptive collection tactics. In 2015, the CFPB issued a consent order requiring Encore and its subsidiaries to reform their practices. In 2020, the CFPB filed a lawsuit alleging the company failed to implement those required reforms, leading to a new settlement. In 2023, the CFPB again took action against Encore Capital Group for using deceptive tactics to collect bad debts. This pattern of regulatory action indicates systemic issues with compliance and consumer harm. In February 2025, an Insolvency Service investigation in the UK resulted in the shutdown of an Encore subsidiary for failing to hand over money it had collected.

This conduct has also drawn scrutiny from investors. In March 2025, a law firm announced a securities fraud investigation into Encore Capital Group on behalf of investors, following a significant stock price decline. A separate class action lawsuit alleges the company misled consumers. The company’s own regulatory filings acknowledge litigation and enforcement as a persistent key risk to its global debt recovery business.