Encore Group which includes Midland Funding has announced that it will buy fellow debt buyer Asset Acceptance. Here is part of the announcement:
Encore Capital Group, Inc. (Nasdaq:ECPG) and Asset Acceptance Capital Corp. (Nasdaq:AACC) today announced that Encore has entered into an agreement to acquire Asset Acceptance Capital Corp. Based in Warren, Michigan, Asset Acceptance has decades of experience in buying consumer receivables across a broad range of asset classes, as well as a tenured workforce. Combined, Encore and Asset Acceptance have purchased over 60 million individual consumer accounts, including credit card, telecommunications, consumer loans and other related assets, with a face value of over $130 billion.
Remarkable the amount of debt these companies have bought.
In Alabama, Midland Funding sues over 100 people a week. Asset Acceptance files fewer cases but this gives you an idea of the level of activity these companies have in Alabama. Another way to look at this is we have 10 federal court lawsuits against Midland and only 1 against Asset Acceptance.
We’ll keep an eye on this consolidation move as there are further developments.