January 9, 2015
New York Attorney General Eric T. Schneiderman announced a settlement with Encore Capital Group, Inc.
, a major debt buyer, for bringing improper debt collection actions against thousands of New York consumers. According the state, Encore sued New York consumers and obtained uncontested default judgments against consumers who failed to respond to the lawsuits, even though the underlying claims were untimely under New York law. Under the settlement, Encore will seek to vacate more than 4,500 improperly obtained judgments totaling nearly $18 million. Encore will also reform its debt collection practices and pay civil penalties and costs in the amount of $675,000. NY