Encore Capital Group, a major debt-collection company, will head back to the settlement table after the Sixth Circuit scuttled the prior arrangement. Calling the relief given to the unnamed plaintiffs ($17.38 per claimant) and the one year injunction prohibiting illegal practices “perfunctory at best,” the Sixth Circuit found that the lower court abused its discretion in approving the $5.2 million settlement.
The case stemmed from Encore’s Midland Funding LLC subdivision’s shady debt-collection practices, which included using robo-signed affidavits to collect debt from more than a million individuals. According to the plaintiffs, the workers would process 300 to 400 affidavits per day, produced by the computer, all with no personal knowledge of the case.






