Exhibit 10.29

AMENDMENT NO. 3

Dated as of February 27, 2007

to

CREDIT AGREEMENT

Dated as of June 7, 2005

THIS AMENDMENT NO. 3 (“Amendment”) is made as of February 27, 2007 by and among
Encore Capital Group, Inc. (the “Borrower”), the financial institutions listed
on the signature pages hereof (the “Lenders”) and JPMorgan Chase Bank, National
Association, as Administrative Agent (the “Agent”), under that certain Credit
Agreement dated as of June 7, 2005 by and among the Borrower, the Lenders and
the Agent (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”). Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings given to them in the Credit Agreement.

WHEREAS, the Borrower has requested that the Lenders and the Agent agree to
certain amendments to the Credit Agreement;

WHEREAS, the Lenders party hereto and the Agent have agreed to such amendments
on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrower, the
Lenders party hereto and the Agent have agreed to enter into this Amendment.

1. Amendments to Credit Agreement. Effective as of the date of satisfaction of
the conditions precedent set forth in Section 2 below, the Credit Agreement is
amended as follows:

(a) Section 6.10 of the Credit Agreement is amended to insert the following new
clauses (v) and (vi) at the end thereof to read as follows:

“and (v) the Borrower may, so long as the Payment Conditions are satisfied, make
repurchases of its capital stock and redeem or purchase its “Unsecured Notes”
(as defined in that certain Amendment No. 1 and Consent dated as of August 1,
2005 by and among the Borrower, the Lenders party thereto and the Administrative
Agent) so long as the aggregate cumulative amount expended for all such
repurchases of capital stock and redemptions and purchases of such Unsecured
Notes does not exceed $50,000,000 (and no more than $25,000,000 of such amount
shall be expended for such redemptions and purchases of such Unsecured

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Notes). As used herein, “Payment Conditions” means (i) no Default or Unmatured
Default has then occurred and is continuing or would arise after giving effect
thereto and (ii) before and after giving effect (including pro forma effect)
thereto, (A) the Borrower is in compliance with the covenants set forth in
Sections 6.21 and 6.22 and (B) the Aggregate Outstanding Revolving Credit
Exposure shall not exceed the Adjusted Available Aggregate Revolving Loan
Commitment”.

(b) Section 6.21.2 of the Credit Agreement is amended and restated in its
entirety to read as follows:

6.21.2 Minimum Net Worth. The Borrower will not permit its Consolidated Net
Worth to be less than the sum of (i) a dollar amount equal to 85% of
Consolidated Net Worth at December 31, 2006, plus (ii) 50% of Consolidated Net
Income earned in each fiscal quarter beginning with the quarter ending March 31,
2007 (without deduction for losses), plus (iii) 100% of the amount by which the
Borrower’s “total stockholders’ equity” is increased after February 27, 2007 as
a result of the issuance or sale by the Borrower or any of its Subsidiaries of,
or the conversion of any Indebtedness of such Person into, any equity interests
(including warrants and similar investments) in such Person, minus (iv) amounts
expended by the Borrower to repurchase its capital stock to the extent such
amounts are permitted under Section 6.10(v)(A).

2. Conditions of Effectiveness. The effectiveness of this Amendment is subject
to the conditions precedent that (a) the Agent shall have received
(i) counterparts of this Amendment duly executed by the Borrower, the Required
Lenders and the Agent and the Consent and Reaffirmation attached hereto duly
executed by the Guarantors, (ii) such other instruments and documents as are
reasonably requested by the Agent, (iii) for the account of each Lender which
executes and delivers its signature page hereto by such time as is requested by
the Administrative Agent, an amendment fee in an amount equal to $2,500 and
(b) the Borrower shall have paid, to the extent invoiced, all expenses of the
Agent (including attorneys’ fees and expenses) in connection with this Amendment
and the other Loan Documents.

3. Representations and Warranties of the Borrower. The Borrower hereby
represents and warrants as follows:

(a) This Amendment and the Credit Agreement as amended hereby constitute legal,
valid and binding obligations of the Borrower and are enforceable against the
Borrower in accordance with their terms.

(b) As of the date hereof and giving effect to the terms of this Amendment,
(i) there exists no Default or Unmatured Default and (ii) the representations
and warranties contained in Article V of the Credit Agreement, as amended
hereby, are true and correct, except for representations and warranties made
with reference solely to an earlier date.

 

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4. Reference to and Effect on the Credit Agreement.

(a) Upon the effectiveness hereof, each reference to the Credit Agreement in the
Credit Agreement or any other Loan Document shall mean and be a reference to the
Credit Agreement as amended hereby.

(b) Except as specifically amended above, the Credit Agreement and all other
documents, instruments and agreements executed and/or delivered in connection
therewith shall remain in full force and effect and are hereby ratified and
confirmed.

(c) The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of the Agent or the Lenders,
nor constitute a waiver of any provision of the Credit Agreement or any other
documents, instruments and agreements executed and/or delivered in connection
therewith.

5. Governing Law. This Amendment shall be governed by and construed in
accordance with the internal laws of the State of New York, but giving effect to
federal laws applicable to national banks.

6. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

7. Counterparts. This Amendment may be executed by one or more of the parties
hereto on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first above written.

 

ENCORE CAPITAL GROUP, INC.,

    as the Borrower

By:  

/s/ J. Brandon Black

Name:

 

J. Brandon Black

Title:

 

President & CEO

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JPMORGAN CHASE BANK,

NATIONAL ASSOCIATION,

    as Administrative Agent, as LC Issuer and as a Lender

By:  

/s/ Steven J. Krakoski

Name:

 

Steven J. Krakoski

Title:

 

Senior Vice President

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BANK OF SCOTLAND, as a Lender

By:  

/s/ Joseph Fratus

Name:

 

Joseph Fratus

Title:

 

First Vice President

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BANK OF AMERICA, N.A., as a Lender

By:  

/s/ Anthony P. Sciarrino

Name:

 

Anthony P. Sciarrino

Title:

 

Senior Vice President

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CALIFORNIA BANK & TRUST, as a Lender

By:  

/s/ Michael Powell

Name:

 

Michael Powell

Title:

 

Senior Vice President

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GUARANTY BANK, as a Lender

By:  

/s/ Scott Brewer

Name:

 

Scott Brewer

Title:

 

Managing Director

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FIRST BANK, as a Lender

By:  

/s/ Gil Hector

Name:

 

Gil Hector

Title:

 

Vice President

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CITIBANK, N.A., successor in interest by merger to

CITIBANK (WEST) F.S.B., as a Lender

By:  

/s/ Dennis J. Jans

Name:

 

Dennis J. Jans

Title:

 

Vice President

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BANK LEUMI USA, as a Lender

By:  

/s/ Jacques Delvoye

Name:

 

Jacques Delvoye

Title:

 

First Vice President

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MANUFACTURERS BANK, as a Lender

By:  

/s/ Maureen Kelly

Name:

 

Maureen Kelly

Title:

 

Vice President

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CONSENT AND REAFFIRMATION

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing
Amendment No. 3 to the Credit Agreement dated as of June 7, 2005 (as the same
may be amended, restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”) by and among Encore Capital Group, Inc. (the
“Borrower”), the financial institutions from time to time party thereto (the
“Lenders”) and JPMorgan Chase Bank, National Association, in its individual
capacity as a Lender and in its capacity as contractual representative (the
“Agent”), which Amendment No. 3 is dated as of February 27, 2007 (the
“Amendment”). Capitalized terms used in this Consent and Reaffirmation and not
defined herein shall have the meanings given to them in the Credit Agreement.
Without in any way establishing a course of dealing by the Agent or any Lender,
each of the undersigned consents to the Amendment and reaffirms the terms and
conditions of the Guaranty Agreement, the Pledge and Security Agreement and any
other Loan Document executed by it and acknowledges and agrees that such
agreement and each and every such Loan Document executed by the undersigned in
connection with the Credit Agreement remains in full force and effect and is
hereby reaffirmed, ratified and confirmed. All references to the Credit
Agreement contained in the above-referenced documents shall be a reference to
the Credit Agreement as so modified by the Amendment and as the same may from
time to time hereafter be amended, modified or restated.

Dated: February 27, 2007

[Signature Page Follows]

 

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MIDLAND CREDIT MANAGEMENT, INC.,

   

MIDLAND FUNDING NCC-2 CORPORATION,

as a Guarantor

   

as a Guarantor

By:  

/s/ J. Brandon Black

   

By:

 

/s/ J. Brandon Black

Name:

 

J. Brandon Black

   

Name:

 

J. Brandon Black

Title:

 

President

   

Title:

 

President

ACG HOLDING, INC.,

   

MIDLAND PORTFOLIO SERVICES, INC.,

as a Guarantor

   

as a Guarantor

By:  

/s/ J. Brandon Black

   

By:

 

/s/ J. Brandon Black

Name:

 

J. Brandon Black

   

Name:

 

J. Brandon Black

Title:

 

President

   

Title:

 

President

ACG MANAGEMENT LLC,

   

MIDLAND FUNDING LLC,

as a Guarantor

   

as a Guarantor

By: ACG HOLDING, INC., as Manager

    By:  

/s/ J. Brandon Black

   

By:

 

/s/ J. Brandon Black

Name:

 

J. Brandon Black

   

Name:

 

J. Brandon Black

Title:

 

President

   

Title:

 

President

MIDLAND INTERNATIONAL LLC,

   

ASCENSION CAPITAL GROUP, LP,

as a Guarantor

   

as a Guarantor

By: MIDLAND CREDIT MANAGEMENT, INC., its Sole Member    

By: ACG HOLDING, INC., its General Partner

By:  

/s/ J. Brandon Black

   

By:

 

/s/ J. Brandon Black

Name:

 

J. Brandon Black

   

Name:

 

J. Brandon Black

Title:

 

President

   

Title:

 

President