Encore Capital Group Announces Findings of its Second Economic Freedom Study
28 February 2023 - 12:00AM
Encore Capital Group, Inc. (Encore) (Nasdaq: ECPG), an
international specialty finance company, today announced the
findings of its second Economic Freedom Study. This new study asked
3,000 people in Encore’s largest markets, the United States and
United Kingdom, their feelings about personal finances and the
economy, as well as the impact of inflation on spending and debt.
In keeping with Encore’s Mission, it also asked people how they
prioritize economic freedom, and what they believe are the most
valuable tools to achieve it. The research was commissioned by
Encore and conducted by Morning Consult.
A detailed report of the findings is available on Encore’s
website. Key highlights from the study include:
- Fewer adults in the U.S. and the U.K. believe they’re better
off financially than they were the year before compared to
the 2021 Encore Economic Freedom Study. Most adults don’t
believe they’re in a better financial state compared to the
previous year, and less than half of respondents report feeling
comfortable with their current financial state.
- Inflation had a major impact on personal spending for more than
90% of surveyed adults. Consumers report spending more on
groceries, gas/utilities and housing in both the U.S. and the U.K.
Just 17% of U.S. adults and 14% of U.K. adults reported an increase
in how much they contributed to their savings in 2022.
- U.S. adults are more likely to have a positive outlook on their
economic future compared to U.K. adults, who demonstrated a
significant decrease in their confidence in the future of the
economy. However, respondents tended to have a more positive
outlook on the future of their own personal finances (61% U.S., 47%
U.K.) as opposed to the overall economy (39% U.S., 17% U.K.).
- Thirty-five percent of Americans and 43% of U.K. adults report
having past-due debt, and adults in both countries are more likely
to be accumulating, rather than reducing, past-due debts. More
Americans (59%) than their U.K. counterparts (52%) are confident in
their ability to pay down debt in the coming year, but they’re
aligned on how to tackle their debt – pay it down in small
increments over time.
- Almost all surveyed adults agree that economic freedom is a
priority in their life (91% U.S., 84% U.K.); Americans are more
likely than U.K. adults to name economic freedom as their top
priority.
“Because we work with consumers every day, it’s important for us
to understand how people feel about their finances, the stresses
they face and the tools they need to achieve their goals,” said
Ashish Masih, Encore’s President and CEO. “The learnings from this
study not only help Encore be a better and more empathetic partner
to our consumers, but they also provide insights for anyone
committed to helping others achieve financial well-being.”
Even as consumers become more indebted, and more distressed as a
result, the survey found that people want to fulfill their
financial obligations. Approximately nine out of ten adults in both
countries believe it’s important to pay off past-due debts and that
access to affordable credit is important to the economy.
“Helping resolve their financial obligations is a mutual goal we
share with our consumers, and it’s a positive starting point,”
added Masih. “From here, we can work together with consumers to
find the best path for resolving debt in a manageable way.”
The survey affirmed many of the approaches Encore takes with
consumers today. For example, when asked what would be most helpful
in reducing or eliminating debt, “being able to pause debt
repayment if I experience hardship” was cited as one of the most
important factors for all surveyed adults.
In 2011, Encore’s U.S. subsidiary, Midland Credit Management
(MCM), created the industry’s first and only Consumer Bill of
Rights, which clearly defines how MCM will suspend collection
activities when a consumer demonstrates they are experiencing
significant financial hardship due to medical issues, natural
disasters, job loss or other issues. Similarly, Encore’s subsidiary
in the U.K., Cabot Credit Management, has a Sensitive Support Team,
which can offer account holds for various lengths of time while
consumers get the support they need to work on their financial,
mental or physical health.
“Our Mission is to help all consumers – not just the ones we
work with – achieve economic freedom. But there’s always more to
learn as we strive to be an even better partner in our consumers’
financial growth,” said Masih. “Even in a state of heightened
stress, I was gratified to see that the people surveyed showed
signs of optimism and resilience, and they continue to believe in
their ability to reach a better financial future. It’s our Mission
to help them get there, and it’s also our essential role in the
larger consumer credit ecosystem.”
The online survey was fielded by Morning Consult from December
9-22, 2022, and included 1,500 U.S. adults and 1,500 U.K. adults.
The samples are weighted to reflect the demographics of the general
population in each country. The margin of error for this study is
plus or minus 3 percentage points in each country.
About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance
company that provides debt recovery solutions and other related
services for consumers across a broad range of financial assets.
Through its subsidiaries around the globe, Encore purchases or
services portfolios of receivables from major banks, credit unions
and utility providers.
Encore partners with individuals as they repay their debt
obligations, helping them on the road to financial recovery and
ultimately improving their economic well-being. Encore is the first
and only company of its kind to operate with a Consumer Bill
of Rights that provides industry-leading commitments to
consumers. Headquartered in San Diego, Encore is a publicly traded
NASDAQ Global Select company (ticker symbol: ECPG) and a component
stock of the Russell 2000, the S&P Small Cap 600 and the
Wilshire 4500. More information about the company can be found
at http://www.encorecapital.com.
ContactFaryar
BorhaniVice President, Chief Communications
Officerpress@encorecapital.com
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