Encore Capital Group is a debt buyer, not the original creditor

Encore Capital Group purchases old debts — usually credit card accounts, medical bills, or personal loans — from banks and creditors who have written them off as uncollectible. Encore then attempts to collect those debts from the original borrower. You will not owe Encore money because you borrowed from them; you owe them because they bought your debt from someone else.

Encore operates through subsidiaries including Midland Credit Management, Cavalry Portfolio Services, and Unifund CCR Partners. If you receive a letter or call from any of these names, it is Encore attempting collection. The company is publicly traded and operates across all 50 states, making it one of the largest debt buyers in the United States.

The debt Encore holds is typically years old — often five to ten years past the original missed payment. This matters because of statute of limitations rules, which set a time window during which a debt buyer can sue you. That window varies by state and by the type of debt, but once it closes, Encore can still contact you, though they cannot take you to court.

Key Takeaways

  • Encore Capital Group buys debts that original creditors have written off, then collects from borrowers through letters, calls, or lawsuits.
  • The debt Encore holds is usually several years old, and your state's statute of limitations determines whether they can sue you.
  • You have the right to request written proof that the debt is yours and that Encore owns it, and they must provide this within 30 days.
  • Responding to a lawsuit from Encore within the required timeframe is critical — ignoring it can result in a judgment against you and wage garnishment.
  • Debt validation letters, cease-contact requests, and settlement negotiations are your main tools for managing Encore collection attempts.

How Encore contacts you and what they are legally required to disclose

Encore contacts borrowers by mail, phone, or both. Their first contact is usually a letter stating the debt amount, the original creditor's name, and your right to dispute the debt. Federal law requires this letter to arrive within five days of first contact and must include specific language about your rights under the Fair Debt Collection Practices Act (FDCPA).

The letter must tell you that you have 30 days to request written proof that the debt is yours — called a debt validation request. If you send this request in writing within 30 days, Encore must stop collection efforts until they provide documentation showing the debt belongs to you and that they own it. This is one of your strongest tools because many debt buyers, including Encore, cannot always produce the original contract or account statements linking you to the debt.

Phone calls from Encore are subject to the same FDCPA rules. They cannot call before 8 a.m. or after 9 p.m. in your time zone, cannot call your workplace if your employer prohibits it, and cannot harass you or use threats. If you tell them to stop calling, they must honor that request in writing — send a letter saying "Do not contact me by phone" and keep a copy.

Understanding statute of limitations and whether Encore can sue you

Encore can attempt to collect a debt indefinitely, but they can only sue you within your state's statute of limitations window. This period begins on the date of your last payment or last charge to the account — not the date Encore bought the debt. Statutes of limitations range from three years in some states to ten years in others, and they differ based on whether the debt is a written contract, an oral agreement, or an open account like a credit card.

You can find your state's statute of limitations through your state attorney general's office or a consumer law resource. Knowing this date matters because if Encore sues you after the window closes, you can raise the statute of limitations as a legal defense. However, you must raise it in your written response to the lawsuit — straightforward ignoring the case will not protect you.

Even if the statute of limitations has expired, Encore can still send collection letters and make calls. They cannot threaten to sue or imply they will take legal action, but many borrowers do not know the statute has passed and pay anyway. This is why knowing your state's rules is important.

What to do if Encore sues you

If you receive a summons and complaint from Encore, you are being sued in civil court. The summons will state a important date — usually 20 to 30 days depending on your state — by which you must file a written response called an answer. Missing this important date is catastrophic: Encore wins by default, and the court enters a judgment against you without hearing your side.

Your answer should state whether you admit, deny, or do not know each claim Encore makes. You can also raise defenses, including that the statute of limitations has expired, that Encore has not proven the debt is yours, or that the amount is wrong. If you cannot afford an attorney, contact your local legal aid office — many handle debt defense cases for free or low cost.

If you do not respond, Encore will ask the court for a judgment. Once granted, they can pursue wage garnishment (taking money directly from your paycheck), bank account levies, or liens on property, depending on your state's laws. Some states protect certain income like Social Security or disability payments from garnishment, but others do not.

Sending a debt validation request and what happens next

Within 30 days of receiving Encore's first letter, send a written request for debt validation. Use certified mail with return receipt so you have proof of delivery. Your letter should state: "I dispute this debt and request that you provide written proof that this debt is mine and that you own it." Keep a copy for your records.

Encore must then stop collection efforts — including calls and letters — until they respond. They have 30 days to send you documentation. What they must provide varies by state, but generally includes the original account agreement, a chain of ownership showing how the debt passed from the original creditor to Encore, and account statements showing the balance and payment history.

Many debt buyers cannot produce complete documentation, especially for very old debts. If Encore fails to validate the debt or sends incomplete proof, you can use this in your defense if they sue. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state attorney general if Encore violates the validation rules.

Negotiating a settlement or payment plan with Encore

Encore often settles debts for less than the full amount owed. If you want to negotiate, contact them in writing and propose a settlement figure — typically 30 to 60 percent of the balance. They may counter with a higher offer. Once you agree on an amount, get the settlement agreement in writing before paying anything. The agreement should state the amount you will pay, the date payment is due, and that once paid, Encore will delete the debt from your credit report and stop collection efforts.

If you cannot pay a lump sum, you can propose a payment plan. Encore may accept monthly payments over several months. Again, get this in writing. Be cautious about making a payment before you have a written agreement — some borrowers pay a small amount thinking it starts a plan, only to have Encore demand the full balance when ready after.

Before settling, understand that paying an old debt can restart the statute of limitations clock in some states, meaning Encore could sue you again if you miss a payment on the settlement plan. Ask Encore in writing whether paying will restart the statute before you agree to anything.

Your rights under the Fair Debt Collection Practices Act

The FDCPA is a federal law that sets rules for how debt collectors, including Encore, can contact you. They cannot use profanity, threaten violence, falsely claim they are attorneys or government agents, or contact third parties about your debt (except to locate you). They cannot call repeatedly to harass you or contact you at work if you tell them your employer forbids it.

If Encore violates the FDCPA, you can sue them in federal court for actual damages (money you lost) plus statutory damages up to $1,000 per violation. Many borrowers win these cases and recover money. You can also file a complaint with the CFPB, which tracks violations and can fine Encore if the violations are widespread.

Document every violation: save letters, record call dates and times, and note what was said. If Encore calls after you have sent a cease-contact letter, that is a violation. If they threaten to sue after the statute of limitations has expired, that is a violation. Keep records so you can prove the violation if you decide to pursue a claim.

Frequently Asked Questions

Can Encore put a lien on my house?

Only if they win a lawsuit against you and your state allows judgment liens. After obtaining a judgment, Encore can file a lien on real property you own in that state. The lien means you cannot sell the property without paying off the judgment. Some states allow judgment liens automatically; others require Encore to take an additional step. Check your state's rules or speak with a local attorney.

What happens if I ignore Encore's letters and calls?

If the statute of limitations has not expired, Encore can sue you. If you ignore the lawsuit, they win by default and can garnish your wages or levy your bank account. If the statute has expired, they cannot sue, but ignoring them does not stop the calls and letters — you must send a cease-contact request in writing to stop them.

Does paying Encore remove the debt from my credit report?

Paying does not automatically remove it. The debt will remain on your credit report for seven years from the original delinquency date, whether you pay or not. However, a settlement agreement may require Encore to report the account as "settled" rather than "charged off," which looks slightly better to future creditors. Get this in writing before you pay.

Can I remove Encore's collection account from my credit report if it is old?

You can dispute the account with the credit bureaus if information on your report is inaccurate. If Encore cannot verify the debt when the bureau investigates, the account must be removed. You can also request that Encore remove the account as part of a settlement agreement, though they are not required to do so.

What if Encore is calling about a debt that is not mine?

Send a written dispute stating the debt is not yours and request validation. Encore must then prove the debt is yours before continuing collection. If they cannot, they must stop. You can also file a complaint with the CFPB or your state attorney general if Encore continues contacting you after you have disputed the debt.