Encore Subsidiary Midland Funding Prevails in U.S. Supreme Court Decision
May 16 2017 - 8:00AM
Encore Capital Group, Inc. (NASDAQ:ECPG), an international
specialty finance company, today announced that its subsidiary
Midland Funding prevailed in the case Midland Funding, LLC v.
Johnson, which was before the Supreme Court of the United States.
The high court reversed the U.S. Court of Appeals for the Eleventh
Circuit, holding that the filing of an accurate proof of claim on
an unextinguished time-barred debt does not violate the Fair Debt
Collection Practices Act (FDCPA).
"We work hard to ensure our operations are in compliance with
the laws governing our industry, but it’s often the case that even
judges disagree about what those laws may require,” said Kenneth A.
Vecchione, president and CEO of Encore. “It’s encouraging to see
the Supreme Court agree with the prevailing view and confirm that
our practices were appropriate.”
In the majority opinion, the court concluded that Midland’s
filing of an accurate proof of claim on an unextinguished
time-barred debt was not “false, deceptive or misleading” because
under state law, the expiration of the statute of limitations did
not extinguish the debt. It also found that the filing was not
improper. The court noted that, in bankruptcy, the debtor has many
additional protections against time-barred debts and added that the
statute of limitations provides an affirmative defense that the
trustee, not the creditor, has the responsibility to raise. The
court further reasoned that applying the FDCPA in this case would
upset the balance Congress struck in adopting the Bankruptcy
Code.
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 and credit
unions. 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:
Kevin Saidler
Manager, Corporate Communications
Encore Capital Group, Inc.
(858) 309-9772
kevin.saidler@encorecapital.com
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