Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Encore Capital Group Shares Slumped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Encore Capital Group (NASDAQ: ECPG  ) , an asset management service that purchases and manages defaulted and unpaid portfolios of assets, fell as much as 11% after a U.S. appeals court voided its robo-signing settlement.

So what: The federal appeals court overruled a decision which would have settled whether or not Encore used illegal tactics to collect debt from 1.44 million consumers for $5.2 million. According to the appeals court, U.S. District Judge David Katz "abused his discretion" in his 2011 ruling, and noted that Encore's subsidiaries were "free to resume its predatory practices" as soon as one year after the injunction was up.

Now what: This is definitely bad news for Encore, which appeared to be getting off on the cheap with its initial settlement. With that verdict thrown out, those who currently have debt collection lawsuits against them and were listed in this settlement may have grounds to have the entire judgment against them thrown out. Until we have better clarity here, this is a company I'd rather avoid altogether.

Craving more input? Start by adding Encore Capital Group to your free and personalized Watchlist so you can keep up on the latest news with the company. 

With so many of the big finance firms getting bad press these days, you may be inclined to stay away from the sector entirely, but that could be a huge mistake. In fact, some of the best opportunities over the next few years can be found there, including one small, under-the-radar bank. It's been called one of "The Stocks Only the Smartest Investors Are Buying." You can learn about it, and more, in The Motley Fool's exclusive free report. Just click here to keep reading.

Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2279949, ~/Articles/ArticleHandler.aspx, 8/28/2016 8:33:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,395.40 -53.01 -0.29%
S&P 500 2,169.04 -3.43 -0.16%
NASD 5,218.92 6.71 0.13%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/26/2016 4:00 PM
ECPG $21.40 Down -0.01 -0.05%
Encore Capital Gro… CAPS Rating: ****