2004 Credit Suit

Encore: A Debt Collector That Truly Feels Your Pain

If you're getting a call about your credit card debt from Encore Capital Group, don't accuse the company of not understanding your predicament.

"Encore has walked a mile in your shoes.

The company buys debt at reduced prices from other firms, mainly issuers of credit cards, that have given up trying to collect. It then tries to collect the money itself.

"A few years ago, Encore hid under its own mountain of debt.

"We were in default with all our bankers," said Chief Executive Carl Gregory. "But we renegotiated terms of repayment, and we were able to pay off the debts in advance of the new deadlines."

Gregory and his management team took over in 2000, when Encore was headed for an annual loss of $3.20 a share. He says the company ran into problems when it tried to grow too fast.

Isn't it interesting how corporations can simply "renegotiate" the terms?

I wonder what kind of terms Encore gives to consumers.