Stating multiple violations of Texas collection laws and the Texas Finance Code, Encore Capital Group has been charged by Texas Attorney General Greg Abbott with attempting to collect debts based on incomplete and inaccurate information, employing unlawful and deceptive collection tactics and once again robo-signing and falsifying affidavits.
According to investigators, collection letters contained very little information about the debt they were attempting to collect, provided no supporting documentation and included no proof that they actually acquired the debt from the original creditor. The investigation further revealed that robo-signers routinely signed over 300 affidavits per day without reviewing the debtors file.
In sworn testimony provided to investigators, the attorney general’s office revealed, the robo-signers said they also had no personal knowledge of the original debt or the defendant’s acquisition of the debt portfolios – which was contrary to the information contained in sworn affidavits that defendants filed with the courts.
Why is this important?
Because the falsified affidavits were deemed truthful by courts and judges relied upon them to issue judgments against debtors!
This is a prime example of trying to “game” the system. Encore and other larger debt buyers have not regard for their debtors. They are large public companies who need to report ever increasing profits to their shareholders. Their business models are set up to produce upwards of 60% of profits from lawsuits. With a win ratio approaching 95%, it’s basically a “sue first and ask questions later” model.
As laws become tougher and Attorney Generals continue to crack down on these unscrupulous practices it will become increasingly difficult for large debt buyers such as these to make money. In fact, it’s already become apparent as one major debt buyer has already announced it’s plans to exit the business.
We have connections with major players in the industry who use vastly different business model, and in fact, have never sued a single debtor! This model proves it’s possible to treat debtors with the dignity and respect they deserve and be very successful.
Do Good and Make Money!