Encore Capital Group Inc's Business Segments

We are an international specialty finance company providing debt recovery solutions for consumers and property owners across a broad range of financial assets.

Portfolio Purchasing and Recovery Business
We purchase portfolios of defaulted consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies, commercial retailers, and telecommunication companies. Defaulted receivables may also include receivables subject to bankruptcy proceedings.

United States
Through certain subsidiaries, we are a market leader in portfolio purchasing and recovery in the United States, including Puerto Rico.

Europe
Through our controlling interest in United Kingdom-based Cabot Credit Management Limited (“Cabot”), we are a market leader in debt management in the United Kingdom and Ireland. Cabot specializes in collecting higher balance, “semi-performing” accounts (i.e., debt portfolios in which over 50% of the accounts have received a payment in three of the last four months immediately prior to the portfolio purchase). In February 2014, Cabot acquired Marlin Financial Group Limited (“Marlin”), a leading acquirer of non-performing consumer debt in the United Kingdom. Marlin is differentiated by its use of litigation-enhanced collections for non-paying financial services receivables, which complements Cabot’s management of semi-performing accounts. On June 1, 2015, Cabot continued to expand in the United Kingdom with its acquisition of Hillesden Securities Ltd and its subsidiaries (“dlc”).

We own a majority ownership interest in Grove Holdings (“Grove”). Through its subsidiaries Grove is a leading specialty investment firm focused on consumer non-performing loans, including insolvencies in the United Kingdom (in particular, individual voluntary arrangements, or IVAs) and bank and non-bank receivables in Spain. To date, operating results from Grove have been immaterial to our total consolidated operating results.

Latin America
Through our majority ownership interest in Refinancia S.A. (“Refinancia”), we are a market leader in debt collection and management in Colombia and Peru. In addition to purchasing defaulted receivables, Refinancia offers portfolio management services to banks for non-performing loans. Refinancia also specializes in non-traditional niches in the geographic areas in which it operates, including providing financial solutions to individuals who have previously defaulted on their obligations. In addition to operations in Colombia and Peru, we evaluate and purchase non-performing loans in other countries in Latin America, including Mexico and Brazil. Beginning in December 2014, we began investing in non-performing secured residential mortgages in Latin America. To date, operating results from our Latin America operations have not been significant to our total consolidated operating results.

Encore Capital Group Inc. operates through two primary reportable segments: Portfolio Purchasing and Recovery, and Tax Lien Business. As a prominent international specialty finance company, Encore focuses on providing tailored debt recovery solutions for both consumers and property owners against a diverse array of financial assets.

1. Portfolio Purchasing and Recovery

In this segment, Encore Capital Group specializes in acquiring portfolios of defaulted consumer receivables. These receivables are purchased at significant discounts relative to their face value, allowing the company to strategically manage and recover them. Key aspects of this segment include:

- Defaulted Receivables: The company deals with unpaid financial obligations from consumers, originating from various credit sources such as banks, credit unions, consumer finance companies, commercial retailers, and telecommunications companies. This category may also encompass debts subject to bankruptcy proceedings.

- Strategic Management: Encore does not merely purchase these receivables; it actively engages in recovery efforts by working with the individuals to help them repay their debts. This process not only aids in financial restitution for consumers but also contributes positively to their financial health and recovery.

- Geographical Reach: Encore is a leader in the portfolio purchasing and recovery market within the United States, including Puerto Rico. Additionally, through its subsidiary Janus Holdings Luxembourg S.a.r.l. and its U.K.-based subsidiary Cabot Credit Management Limited, Encore has secured a prominent position in the British credit management landscape.

- Cabot Credit Management: Cabot specializes in acquiring and managing portfolios of higher balance, semi-performing accounts, characterized by a significant history of payment. The acquisition of Marlin Financial Group Limited enhanced Cabot’s capabilities in litigation-driven collection of non-performing accounts, while the acquisition of Hillesden Securities provided further market strength.

- Grove Holdings: Another subsidiary, Grove, focuses on specialty investment related to consumer non-performing loans and insolvency management in the U.K. while also extending its services to Spain.

- Refinancia S.A.: In Latin America, Refinancia leads debt collection and management efforts in Colombia and Peru, expanding Encore’s influence in these emerging markets.

Tax Lien Business

Encore’s tax lien business reflects its commitment to assisting property owners facing delinquency on property taxes. This segment offers innovative solutions including:

- Affordable Payment Plans: Encore provides structured payment plans that allow property owners to manage their tax debts more effectively, easing the financial burden of past due taxes.

- Purchasing Delinquent Tax Liens: The company actively acquires delinquent tax liens from local taxing authorities. This strategic involvement not only enables Encore to recover amounts owed but also allows property owners to regain control over their financial situation.

International Expansion

Encore Capital Group has made significant strides to expand its global footprint, underlined by strategic acquisitions that enhance its operational capabilities:

- Baycorp Holdings: Acquired in 2015, this company is one of Australasias leading debt resolution specialists, allowing Encore to penetrate the markets in Australia and New Zealand effectively.

Through these segments and services, Encore Capital Group Inc. demonstrates a robust operational model that blends strategic acquisition of debt portfolios with an emphasis on recovery and consumer assistance, all while extending its services across various international markets. The company is committed to fostering financial recovery for individuals and property owners alike, maintaining strong positions in multiple regions worldwide.