Daily Digest - April 3, 2026

🎂 Happy Birthday to the following: Rakesh Manjunath of TrueML, and Scott Ogden of SCJ Commercial Financial Services.

🎉 Congratulations for starting new positions: Sean Fennema as Vice President at Servicing at Finsist, Varun Rajpal as Manager - Collections & Strategy at Skit.ai, and William Perrella as AVP of Sales at Williams & Fudge.

Logo Madness is Here!

It’s time to crown the best logo in the industry. Full bracket available here so you can track the competition. Click on the link underneath the logo to choose your winner. Voting is open for 24 hours.

NEW: Digital Communications Survey

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Collector Sued for Allegedly Reporting Debt Before Notifying Consumer

• In what seems like a situation where a lot of communications are likely being sent to the wrong address, a collection operation is facing claims of violating the Fair Debt Collection Practices Act as well as being accused of violating Regulation F by furnishing information about a debt to the credit reporting agencies before notifying the plaintiff about the debt after the plaintiff was the victim of bad timing by signing a lease on an apartment a month before the COVID-19 lockdown went into place back in 2020.

• More details here.

• This series is sponsored by WebRecon

A MESSAGE FROM TCN

TODAY’S WEBINAR

UPCOMING WEBINARS

Utah Court Says Lease-Related Charges Can Qualify as FDCPA Debt

• A District Court judge in Utah has denied a motion to dismiss a Fair Debt Collection Practices Act suit, disagreeing with the defendant’s argument that the debt was not subject to the statute.

• More details here.

Mixed File FCRA Allegations Survive MTD

• A District Court judge in Virginia has denied a motion to dismiss filed by defendants in a Fair Credit Reporting Act case over a mixed credit file, ruling the plaintiff has standing and that reliance on the information provided by the credit reporting agencies is not a defense at this stage of the proceedings.

• More details here.

CFPB Complaint Volume Doubles Again, Credit Reporting Still in Spotlight

• The Consumer Financial Protection Bureau this week released its latest Consumer Response Annual Report, and the numbers are hard to ignore: complaint volume has surged past 6.6 million in 2025, continuing a multi-year trend of rapid growth. While the topline figure is eye-catching, what sits beneath it, especially the role of credit reporting, credit repair activity, and how companies are responding, may matter far more for professionals in credit and collections.

• More details here.

Consumers Embrace AI for Speed, Not Autonomy, TD Report Finds

• Artificial intelligence is no longer something consumers are experimenting with. It is something they expect. A new report from TD Bank shows that 78% of Americans are now using AI in their daily lives, with more than half using it to help manage their finances. But while adoption is accelerating quickly, trust is not keeping pace. Only 18% of consumers say they would trust AI to make financial decisions on its own. That tension is shaping how financial institutions, including those in credit and collections, will need to deploy AI going forward.

• More details here.

WORTH NOTING: Fewer Americans are putting off decisions because of financial reasons ... At the same time, another survey says more Americans are turning to personal loans to help make ends meet ... CashApp has launched a "pay later" feature for paying their everyday transfers over an extended period of time ... AI has more employers laying off workers ... Ideas for having fun without breaking the bank ... Better way for you to tackle decluttering ... A look at how many people could lose access to credit if an interest rate cap is instituted ... Look at how rising gas prices are going to impact airline fares.

Funny Friday, part I

Funny Friday, Part II

Webinar Recap: AI 101: Back to the Basics

Hosted by Mike Gibb and sponsored by CSS Impact, this webinar brought together industry leaders to demystify artificial intelligence and its role in collections. Panelists emphasized that AI should be understood as a tool for efficiency and insight, not as a replacement for human expertise.

Rob Grafrath reminded attendees that AI systems are “probabilistic engines” and should not be anthropomorphized. John Trotta highlighted AI’s strength in pattern recognition, while Glenn Kurban described AI as his “muse,” helping him explore ideas faster. Russell Janab compared AI to a parrot trained on vast datasets—excellent at mimicking patterns but dependent on input quality. Justin Metacarpa stressed that AI should be positioned as an assistant, not a substitute for human agents.

The discussion also explored prompt engineering, data readiness, and the distinction between predictive models and large language models (LLMs). Panelists warned against misconceptions—such as fears of AI replacing humans or compliance risks halting adoption—and encouraged organizations to focus on structured data, context-driven prompts, and practical applications like back-office automation.

As Ryder Thompson of CSS Impact noted, “You can’t just bolt on AI to a legacy system.” A strong data foundation and modern infrastructure are essential for success.

🧠 Key Takeaways:

• Invest in Data Quality: Clean, organized, and accessible data is the foundation for effective AI. Poor inputs lead to poor outputs.

• Differentiate AI Tools: Use predictive models for decision science and LLMs for conversational or creative tasks—don’t confuse their roles.

• Start with Practical Applications: Focus on back-office automation and workflow efficiencies before chasing “shiny” tools like voice bots.

This session underscored that AI in collections is about augmentation, not replacement. With the right infrastructure, context, and strategy, AI can empower professionals across debt collection agencies, fintechs, banks, and healthcare providers to work smarter and deliver better outcomes.

Did you know you can get full access to all of my past webinars, along with transcripts and summaries of each, for only $29/month? Sign up to be a premium subscriber today!

The Daily Digest is sponsored by TCN