Encore Capital Group 8-K 2009
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): September 8, 2009
ENCORE CAPITAL GROUP, INC.
(Exact Name of Registrant as Specified in Charter)
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
On September 8, 2009, Encore Capital Group, Inc. announced that it has settled a dispute with Jefferson Capital Systems, LLC and its parent, CompuCredit Corporation, under various agreements among the parties. Under the terms of the settlement, Encores obligations relating to the purchase and delivery of accounts under the Asset Purchase and Forward Flow Agreement dated June 2, 2005, as amended, as well as the related Balance Transfer Agreement dated the same date were satisfied through its purchase of a large portfolio of charged-off credit card accounts on commercially reasonable terms and the resumption of the balance transfer program with Jefferson Capital. Encores forward flow asset of $10.3 million as of June 30, 2009 will be fully allocated to the purchase of this portfolio.
Encore also agreed to return to Jefferson Capital certain accounts that are subject to a settlement among Jefferson Capital, CompuCredit, the Federal Trade Commission and Federal Deposit Insurance Corporation. We do not believe that the return of these accounts will have a material effect on our consolidated financial position or results of operations.
A copy of Encores press release dated September 8, 2009 is attached hereto as Exhibit 99.1.
The information in this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed filed for any purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of such Section. The information in this current report on Form 8-K shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.