Encore Capital 8K Cautionary Note About Forward-looking Statements | ECPG 31 Jan 06

Leveraging Intellectual Capital

Exhibit 99.1

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS

Certain statements in this presentation constitute “forward looking

statements”

within the meaning of the Private Securities Litigation Reform Act

of 1995. Such statements involve risks, uncertainties and other

factors which

may cause actual results, performance or achievements of the Company and

its subsidiaries to be materially different from any future results, performance

or achievements expressed or implied by such forward-looking statements.

For a discussion of these factors, we refer you to the Company's

Annual

Report on Form 10-K as of and for the year ended December 31, 2004 and

all other reports filed by the Company thereafter.

In light of the significant uncertainties inherent in the forward-looking

statements included herein, the inclusion of such information should not be

regarded as a representation by the Company or by any other person or

entity that the objectives and plans of the Company will be achieved.

FORWARD-LOOKING STATEMENTS

Background

Public company since 1999

Leadership change in May 2000

–

Since then, we have invested over $450 million to acquire

receivables with a face value of more than $15.7 billion

Core business is the purchasing and collecting of charged-off

consumer receivables at deep discounts

Recently acquired the leading consumer bankruptcy services

company

Unique business model based on consumer level analytics

Industry leader in consumer debt management

Strategic Vision

Leverage analytics to build the leading company in the distressed

consumer space

–

Continuously improve our differentiated analytical capabilities utilized

for both acquiring and managing portfolios

Continue to grow the profitable core business of purchasing unsecured

defaulted consumer receivables

–

Focus on larger transactions to mitigate competition

–

Improve liquidation and increase efficiency of our business processes

Build new businesses with high barriers to entry and growth potential

centered around the management of distressed consumers

–

Strategic acquisitions (e.g., Ascension Capital)

–

Organic growth (e.g., Healthcare business)

The Distressed Consumer Debt Industry

Industry Dynamics

Highly fragmented industry with more than 6,500 players

(95% of them have less than $8mm in revenue)

–

Few large, sophisticated competitors

–

Most buyers tend to specialize in a particular asset class,

delinquency range and / or geographic location

–

Most buyers have limited analytical tools and narrow range of

collection methods

Credit originators have increasingly sought to outsource the

management of their defaulted receivables

Pricing has risen and at current levels some new entrants may not

realize desired profits

Catalysts for Growth

$1,174

$1,743

$2,239

$2,786

1995

2000

2005E

2010E

Consumer Debt

Other Drivers

($ billions)

Source: Historical data from Federal Reserve; forecasted data from Global Insight

Increase in the minimum payment

to 4% from 2%

Ripple effect after repricing

adjustable rate mortgages

Increase in volume outside the

traditional credit card portfolios

–

Auto deficiencies

–

Medical

–

Telecom

Change in bankruptcy law driving

more Chapter 13’s

Our Company

Encore’s Differentiated Approach to Business

Buy Right

Collect Well

Strategic

Growth

Demand

Professional

and Ethical

Behavior

Consumer level analytics

Multiple collection

strategies

Strong management

team

Focus on

innovation

Manage

Expenses

Goal is to Buy Right

Account level analytics allow us to

effectively target broad purchase

distribution

–

Provides ability to create positively

selected deals

–

Enables us to buy accounts from

competitors

–

Applies to alternative paper types

Strong relationships with nation’s largest

credit grantors

Months Since

Face Value

% of Total Face

Charge-off

($ billions)

Purchased

0 –

$2.3

15%

7 –

$1.7

10%

13 –

$2.1

14%

19 –

$0.9

25 –

$4.9

31%

37+

$3.8

24%

Total

$15.7

100%

All purchases from mid-2000 through September 2005

Purchase distribution¹

Balanced acquisition strategy

Proprietary account

allocation software

Legal outsourcing

collections

Third-party agency

outsourcing

Call center collections

Mailing collections

Account sales to

third-parties

Consumer analysis

Use Analytical Approach to Collections

Encore’s collection systems

Continuous feedback

Monitor / no current

work effort

$33.8

$35.8

$38.6

$40.3

$47.1

$46.7

$49.1

$47.7

$64.0

$57.4

$59.9

$53.4

$65.9

$70.4

$83.9

Which Leads to Strong Collections Growth

2002

2005

2003

2004

Gross Collections

($ millions)

General outbound

calling

New channels

Collection Growth Driven By Innovation, not Replication

Total Collections by Channel Type

18.5%

52.3%

81.5%

47.7%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

85.0%

2002

2003

2004

2005

(% of total collections)

$19.8

$21.4

$23.1

$22.5

$25.0

$23.2

$23.0

$22.3

$27.4

$25.2

$27.3

$26.9

$31.3

$33.4

$37.0

Leads to Collections Efficiency

Growth fueled through innovation rather than headcount

Monthly collection dollars per employee

($ thousands)

2002

2005

2003

2004

Excludes sale of portfolio of rewritten consumer notes for $4.0

million

580

557

592

628

672

711

712

729

759

731

728

670

701

757

703

Average employees, ex. Ascension

Versus our Peers, We Collect More

Peer 1

Encore Capital

Cumulative Collections as a % of Purchase Price

2001 Vintage

266%

206%

121%

36%

354%

294%

193%

79%

50%

100%

150%

200%

250%

300%

350%

400%

Year 1

Year 2

Year 3

Year 4

90%

30%

100%

39%

16%

26%

20%

40%

60%

80%

100%

120%

Year 1

Year 2

342%

289%

209%

125%

39%

403%

359%

284%

197%

56%

50%

100%

150%

200%

250%

300%

350%

400%

450%

Year 1

Year 2

Year 3

Year 4

Year 5

187%

120%

40%

228%

165%

67%

50%

100%

150%

200%

250%

Year 1

Year 2

Year 3

2003 Vintage

2002 Vintage

2004 and 2005 Vintages

Encore call center collector hiring and

retention process

20%

76%

2000

Q3 2005 YTD

Experienced collectors retention rate

Significant focus is placed on hiring and retaining experienced collectors

Promote Professional and Ethical Behavior

Hiring

–

Behavioral test

–

Background checks

Training

–

6 months of concentrated

development

Compensation

–

Unlimited earnings potential

–

Reward consistency

Strategic Steps to Diversify in Complementary Areas and

Enhance our Growth Potential

Auto

Secured loans

Student loans

Telecom

Utilities

Other asset classes / consumer types

Future Areas of Opportunity

Penetration into secured bankruptcy

servicing through Ascension acquisition

Organic expansion into medical

receivables

Active Approach to Broaden Business

Builds upon core credit card charge-off

business by expanding into higher growth

areas

Allows entry into growing niches within the

consumer debt recovery business

Affords significant cross-selling

opportunities

Strategic Rationale

Ascension Provides Entry into Growing Bankruptcy

Servicing Opportunity

Assuming all secured bankruptcy accounts are outsourced

Acquired in August 2005

–

Located in Arlington, Texas

–

197 employees

–

2004 revenue of $12.3 million

Leading position in the largely untapped bankruptcy servicing

market

Total estimated market size of $1.2-$1.4 billion in annual fees¹

Strong cross-selling opportunities with core business

Since closing the acquisition, we have added 2 significant new

clients

Establishment of our Medical Debt Group Provides Entry into

Growing Healthcare Opportunity

Source: Nilson reports, company websites, internal analysis, press releases

Bad debt in statute

($ billions, 2005E)

Bad debt sold -

2004

($ billions)

$39

Healthcare

debt

Credit card

debt

Healthcare

debt

(publicly disclosed)

Credit card

(not including resales)

$250 –

$270

$120 –

$160

Financial Highlights

$0.2

$0.5

$1.6

$1.5

$3.8

$3.3

$3.1

$4.4

$6.0

$5.6

$5.9

$5.7

$7.5

$8.1

$7.8

$18.2

$20.1

$24.4

$27.6

$28.1

$28.4

$29.5

$31.5

$42.4

$43.6

$46.5

$46.0

$50.5

$53.8

$59.2

Strong Financial Results

* Excludes one-time items

YTD through Q3 2005 annualized

Revenue

($ millions)

Net Income

($ millions)

2002

2003

2004

2005

2002

2003

2004

2005

2002

2003

2004

Q3 2005

$19.5

$71.4

$96.0

$111.1

2002

2003

2004

Q3 2005

Strong Balance Sheet

Stockholders’

Equity

Total Debt

$47.7

$41.2

$66.6

$184.7

2002

2003

2004

Q3 2005

($ millions)

0.6x

0.7x

1.7x

2.4x

Total debt / equity

Current Facility

Initiated: June 7, 2005

JPMorgan

$35.0

Bank of America

30.0

Bank of Scotland

30.0

California Bank & Trust

25.0

Guaranty Bank

20.0

Citibank

15.0

First Bank

15.0

Standard Federal Bank

15.0

Bank Leumi USA

10.0

Manufacturers Bank

5.0

Total

$200.0¹

Previous Facility

Initiated: June 30, 2004

JPMorgan

$27.5

Guaranty Bank

12.5

Banco Popular

10.0

Bank of Scotland

10.0

California Bank & Trust

10.0

Bank Leumi

5.0

Total

$75.0¹

Access to Capital

Excludes accordion feature allowing for an additional $25mm`

($ millions)

Investment Highlights

Experienced management team

Recent acquisitions diversify asset and revenue base while

enhancing growth

Attractive business model in a changing industry dynamic

Differentiated analytical acquisition and collections approach

Track record of generating superior financial returns

Encore Capital (ECPG) 8-KCautionary Note About Forward-looking Statements