UPDATE – Encore Capital Group Enhances Credit Reporting Policy to Help Consumers
January 10 2017 - 11:11AM
Encore Capital Group, Inc. (NASDAQ:ECPG), an international
specialty finance company, today announced it has enhanced its
credit reporting policy for collections tradelines, dramatically
shortening the time certain negative information remains on a
consumer’s credit report. Now, after only two years, rather than
the current industry-standard seven-year period, all of Encore’s
U.S. subsidiaries (Midland Credit Management, Midland Funding,
Asset Acceptance, Atlantic Credit & Finance) will remove credit
report tradelines (the payment history of a consumer’s credit
account provided to the major credit reporting agencies) on
accounts where the consumer has paid or otherwise settled their
debt. Encore is the first debt recovery solutions company to adopt
such a consumer-centric policy. This policy change is important for
consumers seeking to re-establish their financial independence
after working hard to pay off a debt.
“We’ve listened to our consumers and analyzed
the impact that the current system has on them,” said Kenneth A.
Vecchione, president and CEO of Encore. “The changes we’re making
today provide a tangible solution that will help them move toward a
better life.”
A significant challenge with current practices that maintain
negative tradelines for seven years, even after a debt has long
been paid or resolved, is that many consumers feel their only
alternative for nearer-term resolution is to dispute the debt in
question. This practice often occurs repeatedly, even if they know
the debt was legitimate and they were responsible for its payment.
By maintaining that accurate, but negative, information for seven
years, the current credit reporting and scoring system provides
limited incentive to pay off an underlying debt.
“Many times people find themselves in a position to bounce back
from financial setbacks, but there remain hurdles like the standard
tradeline policy that hinder recovery,” said John Fisher, chief
relationship officer of Money Management International, a
nonprofit, full-service credit counseling agency. “With this
decision, Encore is helping remove a barrier for people working
hard to make progress in their financial lives.”
Based on Encore’s policy change, effective immediately, existing
credit reporting for its consumers on any account will be removed
when:
- The account reflects that it has been paid in full or settled;
and
- It has been more than two years since the account’s date of
delinquency.
“Encore’s tradeline policy change is a huge benefit for
consumers who have stepped up to pay off their debt obligations,”
said Steve Rhode, consumer advocate and author of GetOutofDebt.org.
“I know personally how important this can be to those who are
trying to earn a second chance.”
“This update to our credit reporting policy is the latest step
in our efforts to provide better solutions for consumers that help
them live better lives,” said Vecchione. “Whether it’s recent
legislation we’ve supported on identity theft or the way our people
work to connect with consumers every day, I’m proud of our
continued efforts to help improve the financial futures of all
Americans.”
For further details of this new consumer-centric solution,
please go to:
https://www.midlandcreditonline.com/help-center/credit-reporting/
About Encore Capital Group, Inc. Encore Capital
Group is an international specialty finance company that provides
debt recovery solutions for consumers across a broad range of
assets. Through its subsidiaries around the globe, Encore purchases
portfolios of consumer receivables from major banks, credit unions
and utility providers.
Encore partners with individuals as they repay their debt
obligations, helping them on the road to financial recovery and
ultimately improving their economic well-being. Encore is the first
and only company of its kind to operate with a Consumer Bill
of Rights that provides industry-leading commitments to
consumers. Headquartered in San Diego, Encore is a publicly traded
NASDAQ Global Select company (ticker symbol: ECPG) and a component
stock of the Russell 2000, the S&P Small Cap 600 and the
Wilshire 4500. More information about the company can be found
at http://www.encorecapital.com. More information about the
Company’s Cabot Credit Management subsidiary can be found
at http://www.cabotcm.com. Information found on the company’s
or Cabot’s website is not incorporated by reference.
Contact:
Bruce Thomas Vice President, Investor Relations Encore Capital Group, Inc.
(858) 309-6442
bruce.thomas@encorecapital.com
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