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<ACCESSION-NUMBER>0001084961-03-000011
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20030404
<ITEMS>5
<FILING-DATE>20030407
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ENCORE CAPITAL GROUP INC
<CIK>0001084961
<ASSIGNED-SIC>6153
<IRS-NUMBER>481090909
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-26489
<FILM-NUMBER>03640616
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>5775 ROSECOE COURT
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92123
<PHONE>8007590327
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>5775 ROSCOE COURT
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92123
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MIDLAND CORP OF KANSAS
<DATE-CHANGED>19990423
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MCM CAPITAL GROUP INC
<DATE-CHANGED>19990430
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>mbnasettle.htm
<DESCRIPTION>FORM 8K MBNA SETTLEMENT
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="4">UNITED STATES </FONT><br>
<FONT FACE="Times New Roman, Times, Serif" SIZE=4>SECURITIES
AND EXCHANGE COMMISSION <BR>WASHINGTON, D.C. 20549</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 8-K</FONT></H1>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>CURRENT
REPORT</FONT><br>

<FONT FACE="Times New Roman, Times, Serif" SIZE=3>Pursuant to
Section 13 or 15(d) <BR>of the Securities Exchange Act of 1934</FONT></H1>

                        <P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Date of Report (Date of earliest event reported): April 4, 2003</font></P>





                                        <p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3> <b>Encore Capital Group, Inc.</b></font><br>
                             <FONT FACE="Times New Roman, Times, Serif" SIZE=1> (Exact Name of Registrant as Specified in its Charter)</FONT></p>









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     <TD WIDTH="20%" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><b>Delaware</b></FONT></TD>
     <TD WIDTH="35%" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><b>000-26489</b></FONT></TD>
     <TD WIDTH="30%" ALIGN="left"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><b>48-1090909</b></FONT></TD>
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<TD  ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(State or other jurisdiction of</FONT></TD>
     <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Commission File Number)</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(I.R.S Employer</FONT></TD></TR>
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<TD  ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;incorporation or organization)</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD valign=top ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Identification No.)</FONT></TD></TR>
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<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>5775 Roscoe Court</b>
<BR><b>San Diego, California 92123</b><br>

                               (Address of Principal Executive Offices) (Zip Code)</font></P>



                      <P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>(877) 445-4581</b><br>
                               (Registrant's Telephone Number, Including Area Code)</font></P>



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<TD WIDTH=10% ALIGN=left><P> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 5. </FONT> </P></TD>
<TD WIDTH=90%><P>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events. </FONT> </P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">As previously reported in the Annual Report on Form 10-K of Encore Capital Group, Inc.
(the "Company") for the year ended 2002, as filed on
March 28, 2003, Midland Credit Management, Inc. ("Midland Credit"), a subsidiary of the Company, and two of
Midland Credit's wholly owned subsidiaries, Midland Funding 98-A Corporation ("98-A") and Midland Receivables 99-1 Corporation
("99-1"), entered into a settlement with MBNA America Bank, NA ("MBNA") in connection with a lawsuit filed against MBNA in the
Superior Court of the State of Arizona, County of Maricopa, in February 2001. </FONT>
</P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">On April 4, 2003, pursuant to the terms of the settlement, MBNA paid Midland Credit
 $11.1 million in full and complete satisfaction
of the claims. The net estimated proceeds of $7.6 million, which is net of estimated litigation expenses and attorneys fees totaling $3.5 million, will
be used to repay holders of the notes issued by 98-A and 99-1. The Company will record an estimated net pretax gain in the first quarter of
2003 in the amount of $7.0 million, which is comprised of estimated net proceeds of $7.6 million as reduced by the $0.6 million of
remaining carrying value of the related receivable portfolios as of April 3, 2003. This net gain will result in an increase in the
Company's net worth of approximately $4.2 million, after taking into consideration the related tax effect. </FONT> </P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">As a result of the application of the net settlement proceeds, (i) the 98-A Warehouse Facility will be repaid in full; (ii) the
balance of Securitization 99-1 will be reduced to approximately $3.0 million; and (iii) the Company believes that it is now in compliance with the
covenants under its credit agreements relating to the 98-A Warehouse Facility and Securitization 99-1. </FONT> </P>

<br><br><br><br><br><br>



<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES</FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized. </FONT></P>

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     <TD WIDTH="12%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;</FONT></TD>
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     <TD WIDTH="35%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="43%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
         <TD colspan=2 ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ENCORE CAPITAL GROUP, INC.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;</FONT></TD>
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;</FONT></TD>
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD  ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>


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     <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date:</FONT></TD>
     <TD colspan=2 ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">April 7, 2003</FONT></TD>
     <TD colspan=2 ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Barry R. Barkley&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Barry R. Barkley</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Executive Vice President,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Chief Financial Officer and Treasurer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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