Encore Capital Settles New York Claims Alleging Improper Debt-Collection Practices

Encore Capital Group Inc., a buyer of consumer debt, agreed to settle claims that it used improper collection methods in New York, the state’s attorney general said amid greater nationwide scrutiny of the practice.

The San Diego-based debt investment firm obtained judgments against New York consumers for debts that were too old to collect, Attorney General Eric Schneiderman said in a statement Jan. 9.

Under the settlement, Encore will ask that more than 4,500 improperly obtained judgments totaling nearly $18 million be thrown out. It will reform its practices, and pay civil penalties of $675,000, Schneiderman said.

“New York has ...