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                                                                   EXHIBIT 10.44

                                     FORM OF

                      PREFERRED STOCK CONVERSION AGREEMENT

         This Preferred Stock Conversion Agreement (this "Agreement") is made as
of August 29, 2003 by and among Encore Capital Group, Inc., a Delaware
corporation (the "Company"), and the Purchasers identified in the signature
pages attached hereto (each, a "Purchaser" and, collectively, the "Purchasers").

                                    RECITALS

         A. The Purchasers own shares (the "Preferred Shares") of Series A
Senior Cumulative Participating Convertible Preferred Stock.

         B. The Company is pursuing a public offering of its common stock (the
"Offering").

         C. The underwriters have informed the Company that the Preferred Shares
will need to be converted to shares of common stock (the "Common Shares") in
conjunction with the Offering.

         D. The Purchasers have agreed to exercise their rights to convert the
Preferred Shares into Common Shares to ensure a successful Offering.

         NOW, THEREFORE, in consideration of the mutual covenants contained in
this Agreement and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Purchasers agree
as follows:

                                   ARTICLE I.

                          PURCHASE, ESCROW AND CLOSINGS

         1.1 Conversion of Preferred Stock. Effective as of the closing of the
Offering, the Purchasers agree to convert all of their Preferred Stock into the
Common Shares in accordance with the terms of the Preferred Stock, which
entitles the Purchasers to receive ten (10) Common Shares in exchange for each
share of Preferred Stock so converted.

         1.2 Escrow.

               (a) The parties shall designate an escrow agent (the "Escrow
Agent") and establish an escrow account (the "Escrow Account") pursuant to an
escrow agreement substantially in the form attached hereto as Exhibit A (the
"Escrow Agreement").

               (b) Within six (6) business days of the last signature hereto,
each Purchaser will deliver to the Escrow Agent to be held in accordance with
the Escrow Agreement:

                  (i) each Purchaser's certificates for Preferred Stock; and

                  (ii) any other documents required to be duly and validly
executed and delivered by the Purchasers pursuant to the Escrow Agreement.
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               (c) Prior to the Closing, the Company will:


                  (i) deposit into the Escrow Account the accrued and unpaid
dividends with respect to the Preferred Stock through the Closing date;

                  (ii) deliver to the Escrow Agent the certificates for the
Common Shares; and

                  (iii) deliver to the Escrow Agent all documents required to be
duly and validly executed and delivered by the Company pursuant to the Escrow
Agreement.

         1.3 Closing. Upon satisfaction of the conditions set forth in Section
1.4, the Closing of the conversion of the Preferred Shares shall occur at the
offices of the Company. At the Closing, the Escrow Agent shall deliver or cause
to be delivered the following in accordance with the escrow instructions
contained in the Escrow Agreement:

               (a) to each of the Purchasers, certificates evidencing the
Common Shares (excluding the shares to be included in the Offering) duly
endorsed in blank (or alternatively, at each Purchaser's election, if feasible,
evidence of transfer may be effected through the facilities of the Depository
Trust Company or other means acceptable to the Company), which certificate will
have an appropriate restrictive legend.

               (b) to the Company, the certificates for the Preferred Shares,
for cancellation.

         1.4 Closing Conditions. The Closing of the conversion of Preferred
Shares and issuance of the Common Shares is subject to:

               (a) Closing of the Offering.

               (b) All documents, certificates and instruments required to be
duly and validly executed and delivered by the all of the holders of the
Preferred Shares pursuant to the Escrow Agreement and all amounts required to be
deposited by the Company with the Escrow Agent shall have been deposited with
and received by the Escrow Agent.

               (c) All representations and warranties of the parties contained
herein shall remain true and correct in all material respects as of the Closing
Date.

               (d) As of the Closing Date, there shall have been no Material
Adverse Effect (as defined in Section 2.1(c)) with respect to the Company since
the date hereof.

               (e) From the date hereof to the Closing Date, trading in the
Company's common stock shall not have been suspended or limited, minimum prices
shall not have been established on the Nasdaq National Market, nor shall a
banking moratorium have been declared either by the United States or applicable
state authorities.

         1.5 Termination. If the Closing of the Offering has not occurred by
November 30, 2003 or if the Offering is sooner terminated, this Agreement will
be terminated and have no further



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force and effect. In that event, the return of all deposits, documents,
certificates and other instruments shall be governed by the terms of the Escrow
Agreement.

                                  ARTICLE II.
                         REPRESENTATIONS AND WARRANTIES

         2.1 Representations and Warranties of the Company. The Company hereby
makes the following representations and warranties as of the date hereof , and
as of the Closing Date, to each of the Purchasers (and any permitted assignees):

               (a) Organization. The Company is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization,
with the requisite power and authority to own and use its properties and assets
and to carry on its business as currently conducted.

               (b) Authorization; Enforcement. The Company has the requisite
corporate power and authority to enter into and to consummate the transactions
contemplated hereby and otherwise to carry out its obligations hereunder. The
execution and delivery of this Agreement by the Company and the consummation by
it of the transactions contemplated thereby have been duly authorized by all
necessary action on the part of the Company and no further action is required by
the Company in connection therewith. This Agreement has been duly executed and
delivered by the Company and constitutes a valid and binding obligation of the
Company enforceable against it in accordance with its terms, except (i) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors' rights
generally and (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies (the "Enforceability
Exceptions").

               (c) No Conflicts. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby do not and will not (i) conflict with or violate any
provision of the Company's certificate or articles of incorporation, bylaws or
other organizational or charter documents, or (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument or other understanding
to which the Company is a party or by which any property or asset of the Company
is bound or affected, or (iii) result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other restriction of any
court or governmental authority to which the Company is subject (including
federal and state securities laws and regulations), or by which any property or
asset of the Company is bound or affected; except in the case of each of clauses
(ii) and (iii), such as would not have or reasonably be expected to result in a
material adverse effect on (x) the condition, financial or otherwise, earnings,
business, operations or prospects of the Company taken as a whole, (y) the
legality, validity or enforceability of this Agreement, or (z) adversely impair
the Company's ability to perform in any material respect on a timely basis its
obligations under this Agreement (any of (x), (y) or (z), a "Material Adverse
Effect").



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               (d) No Consents. No consent, approval, authorization or order of,
or any filing or declaration with, any court or governmental agency or body is
required in connection with the consummation by the Company of the transactions
on its part contemplated by this Agreement, except such as may be required under
the Securities Act of 1933 or the rules and regulations promulgated thereunder
(the "Securities Act"), state securities or blue sky laws, and the by-laws and
rules of the Nasdaq National Market, all of which shall be timely made or
obtained.

               (e) SEC Reports. The Company has filed all reports required to be
filed by it under the Securities Exchange Act 1934, including pursuant to
Section 13(a) or 15(d) thereof, and the rules and regulations thereunder (the
"Exchange Act") for the two years preceding the date hereof (the foregoing
materials and any materials incorporated therein by reference being collectively
referred to herein as the "SEC Reports") on a timely basis or has received a
valid extension of such time of filing and has filed any such SEC Reports prior
to the expiration of any such extension. As of their respective dates, the SEC
Reports complied in all material respects with the requirements of the
Securities Act and the Exchange Act and the rules and regulations of the
Securities and Exchange Commission (the "Commission") promulgated thereunder,
and none of the SEC Reports, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

               (f) Financial Statements. The financial statements filed with the
Commission as a part of the SEC Reports present fairly, in all material
respects, the financial position of the Company and its consolidated
subsidiaries as of and at the dates indicated and the results of their
operations and cash flows for the periods specified therein, subject, in the
case of interim financial statements, to the normal year-end adjustments which
are not expected to be material in amount. Such financial statements have been
prepared in conformity with generally accepted accounting principles as applied
in the United States and in effect as of the date of the applicable financial
statements and supporting schedules, as applicable, applied on a consistent
basis throughout the periods involved, except as may be expressly stated in the
related notes thereto, and comply in all material respects with the Securities
Act, the Exchange Act and the applicable rules and regulations of the Commission
thereunder.

               (g) Listing. As of or immediately following the Closing, the
Common Shares will be listed on the Nasdaq National Market.


         2.2 Representations and Warranties of the Purchasers. Each Purchaser
hereby severally and not jointly makes the following representations and
warranties to the Company as of the date hereof, and as of the Closing Date:

               (a) Organization. If an entity, such Purchaser is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization with full right, corporate, partnership or other power and
authority to enter into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations thereunder.

               (b) Authorization; Enforcement. Such Purchaser has the requisite
power and authority to enter into and to consummate the transactions
contemplated hereby and otherwise to

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carry out its obligations hereunder. The execution, delivery and performance by
such Purchaser of the transactions contemplated by this Agreement has been duly
authorized by all necessary action on the part of the Purchaser. This Agreement
has been duly executed by such Purchaser, and constitutes the valid and legally
binding obligation of such Purchaser, enforceable against it in accordance with
its terms, except for the Enforceability Exceptions.

               (c) Investment Intent. Such Purchaser understands that the Common
Shares will be "restricted securities" and have not been registered under the
Securities Act or any applicable state securities law. Such Purchaser is
acquiring the Common Shares as principal for its own account for investment
purposes only and not with a view to the distribution thereof, except pursuant
to a valid and effective registration statement.

               (d) Purchaser Status. The Purchaser is an Accredited Investor or
a Qualified Institutional Buyer, as defined under the Securities Act.

               (e) Experience of Such Purchaser. Such Purchaser, either alone or
together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Common Shares, and has
evaluated the merits and risks of such investment. Such Purchaser is able to
bear the economic risk of an investment in the Common Shares and is able to
afford a complete loss of such investment.

                                  ARTICLE III.
                         OTHER AGREEMENTS OF THE PARTIES

         3.1 Transfer Restrictions.


               (a) The Common Shares may only be disposed of in compliance with
state and federal securities laws. In connection with any transfer of Common
Shares other than pursuant to an effective registration statement, to the
Company, to an affiliate (as defined under the federal securities laws) of a
Purchaser or in connection with a pledge as contemplated in Section 3.1(b), the
Company may require the transferor thereof to provide to the Company an opinion
of counsel selected by the transferor, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Common Shares under
the Securities Act. As a condition of transfer, any such transferee shall agree
in writing to be bound by the terms of this Agreement and shall have the rights
of a Purchaser under this Agreement.

               (b) (i) The Purchasers understand that so long as is required by
this Section 3.1(b), a legend shall be placed on the Common Shares in the
following form:

               These securities have not been registered with the Securities and
               Exchange Commission or the securities commission of any state in
               reliance upon an exemption from registration under the Securities
               Act of 1933, as amended, and, accordingly, may not be offered or
               sold except pursuant to an effective registration statement under
               the Securities Act or pursuant to any available exemption from,
               or in a transaction not subject to, the registration requirements
               of the



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               Securities Act and in accordance with applicable state securities
               laws as evidenced by a legal opinion of counsel to the transferor
               to such effect, the substance of which shall be reasonably
               acceptable to the Company. These securities may be pledged in
               connection with a bona fide margin account with a registered
               broker-dealer or other loan with a financial institution that is
               an accredited investor or qualified institutional buyer as
               defined under the Securities Act.

            (ii) The Company acknowledges and agrees that a Purchaser may from
      time to time pledge pursuant to a bona fide margin agreement with a
      registered broker-dealer or grant a security interest in some or all of
      the Common Shares to a financial institution that is an Accredited
      Investor or Qualified Institutional Buyer as defined under the Securities
      Act and, if required under the terms of such arrangement, such Purchaser
      may transfer pledged or secured Common Shares to the pledgees or secured
      parties. Such a pledge or transfer would not be subject to approval of the
      Company and no opinion of legal counsel of the pledgee, secured party or
      pledgor shall be required in connection therewith. At the appropriate
      Purchaser's expense, the Company will execute and deliver such reasonable
      documentation as a pledgee or secured party of the Common Shares may
      reasonably request in connection with a pledge or transfer of the Common
      Shares.

               (c) Certificates evidencing the Common Shares shall not contain
any legend (including the legend set forth in Section 3.1(b)), (i) while a
registration statement covering the resale of such security is effective under
the Securities Act, or (ii) following any sale of such Securities pursuant to
Rule 144, unless otherwise required by applicable law or (iii) if such Common
Shares are eligible for sale under Rule 144(k), or (iv) if such legend is not
required under applicable requirements of the Securities Act. In such event, the
Company shall cause its counsel to issue a legal opinion to the Company's
transfer agent to the extent necessary to effect the removal of the legend
hereunder. The Company agrees that at such time as the legend is no longer
required under this Section 3.1(c), it will, no later than 3 trading days
following the delivery by a Purchaser to the Company or the Company's transfer
agent of a certificate representing shares of Company Common Stock issued with a
restrictive legend (and such documents as the Company may reasonably request to
permit a sale pursuant to Rule 144, if applicable), deliver or cause to be
delivered to such Purchaser a certificate representing such shares that is free
from all restrictive legends.

                                  ARTICLE IV.
                                  MISCELLANEOUS

      4.1 Fees and Expenses. The Company shall pay the fees and expenses of the
Company's advisers, counsel, accountants and other experts, if any, the
Purchaser's counsel, and all other expenses incurred by the Company, incident to
the negotiation, preparation, execution, delivery and performance of this
Agreement.

      4.2 Entire Agreement. This Agreement, together with the exhibits and
schedules thereto, contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.



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      4.3 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number
specified in this Section prior to 3:30 p.m. (California time) on a trading day,
(b) the next trading day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section on a day that is not a trading day or later than 3:30 p.m.
(California time) on any trading day, (c) the trading day following the date of
mailing, if sent by U.S. nationally recognized overnight courier service, or (d)
upon actual receipt by the party to whom such notice is required to be given.
The address for such notices and communications shall be as set forth on the
signature pages attached hereto.

      4.4 Amendments; Waivers. No provision of this Agreement may be waived or
amended except in a written instrument signed, in the case of an amendment, by
the Company and a majority in interest of the Purchasers or, in the case of a
waiver, by the party against whom enforcement of any such waiver is sought. No
waiver of any default with respect to any provision, condition or requirement of
this Agreement shall be deemed to be a continuing waiver in the future or a
waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of either party to
exercise any right hereunder in any manner impair the exercise of any such
right.

      4.5 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of Delaware, without
regard to the principles of conflicts of law thereof.

      4.6 Execution. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement,
it being understood that all parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile or email transmission, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or email signature page were an original thereof.

      4.7 Independent Nature of Purchasers' Obligations and Rights. The
obligations of each Purchaser under this Agreement are several and not joint
with the obligations of any other Purchaser, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
Purchaser under this Agreement. Nothing contained herein, and no action taken by
any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as
a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by
this Agreement. Each Purchaser shall be entitled to independently protect and
enforce its rights, including without limitation, the rights arising out of this
Agreement, and it shall not be necessary for any other Purchaser to be joined as
an additional party in any proceeding for such purpose.

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      IN WITNESS WHEREOF, the parties hereto have caused this Preferred Stock
Conversion Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

                                     ENCORE CAPITAL GROUP, INC.


                                     -------------------------------------------
                                     By:  Carl C. Gregory, III
                                        ----------------------------------------
                                     Title:  President & Chief Executive Officer
                                             -----------------------------------

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      IN WITNESS WHEREOF, the parties hereto have caused this Preferred Stock
Conversion Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

                           [PURCHASER]

                           By:_________________________________
                               Name:
                               Title:

                           * Number of Preferred Shares to
                           be converted: _____________

                           Address for Notice:

                           --------------------------------
                           --------------------------------
                           --------------------------------
                           --------------------------------


                           Telephone No.: (____) _________
                           Facsimile No.:    (____) __________

With copies to:

                           --------------------------------
                           --------------------------------
                           --------------------------------
                           Facsimile No.:  (___) _____________
                           Attn:________________



*     Must be all your shares.


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