On September 8, 2020, the Consumer Financial Protection Bureau (“CFPB”) filed a complaint alleging that Encore and its subsidiaries violated a consent order “by suing consumers without possessing required documentation, using law firms and an internal legal department to engage in collection efforts without providing required disclosures, and failing to provide consumers with required loan documentation after consumers requested it.”
On this news, shares of Encore fell $3.59 per share, or nearly 10%, to close at $42.29 on September 9, 2020, damaging investors.
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