Debt buyer Encore Capital Group, Inc. late Thursday announced the resolution of litigation initiated earlier this year by the Office of the Attorney General of the State of Texas against Encore Capital Group and certain subsidiaries.
Texas Attorney General Greg Abbott in July announced that his office had filed a suit against Encore and its subsidiaries over some of its collection practices, including the alleged use of “robo-signed” or inaccurate affidavits to validate some consumer debt.
Terms of the resolution were not disclosed by Encore on Thursday. Attempts to reach Encore and the attorney general’s office were unsuccessful.
But Encore noted that the resolution was in line with what the company announced in connection with its 2011 third quarter financial results. In that filing, the company said that it had set aside an additional $500,000 in anticipation of the settlement agreement. The company did note at the time that it expected to pay a financial penalty and reimburse costs to resolve the action.
Abbott has been more aggressive lately in his handling of ARM companies. Two weeks ago, his office announced another lawsuit against a debt collection agency.