Daily Digest - December 23, 2025

🎂 Happy Birthday to: Michael Del Valle of Coast Professional, Tony Sottile of Sottile & Barile, Daniel Ferber of Capital Management Services, Jessica Weinert of Resurgent Capital Services, Patrick Ingegno (Credit & Collection Management Consultant), and DeAnna Busby-Rast of Authentica Group.

🎉Congratulations for starting new positions: John Kaszuba as Sales & Marketing Executive at Core CDI.

New Speakers Being Added Daily

Check out ARMTech.live for the growing list of impressive speakers who are going to be in Dallas. This is going to be the must-attend event of the year!

Class Action Lawsuit Alleges Violations of Pennsylvania, NJ Licensing Laws

• Two of the areas where collection areas are likely to make mistakes are around the licenses they need to operate in certain states and the statutes of limitations. A number of companies, including a creditor, a debt buying organization, a collection operation, and a collection law firm are facing a class-action lawsuit in New Jersey federal court accusing them of violating the Fair Debt Collection Practices Act and state law in Pennsylvania over how it attempted to collect on a deficiency balance after a vehicle was repossessed.

• More details here.

• This series is sponsored by WebRecon

A MESSAGE FROM TCN

TODAY‘S WEBINAR

UPCOMING WEBINARS

Seventh Circuit Revives FDCPA Class Action Over Alleged “Artificial” Acceleration Threat

• The Court of Appeals for the Seventh Circuit has reversed a lower court’s dismissal of a Fair Debt Collection Practices Act class-action lawsuit, ruling that the threat of accelerating the debt which induced the plaintiff to make a payment is sufficient for the plaintiff to have standing to sue. The panel also questioned whether the defendant, a mortgage servicer, could rely on the mortgage’s notice-and-cure provision without proving it was an assignee of the lender under Illinois law.

• More details here.

Judge Allows FCRA Reverification Claim to Proceed While Dismissing Report Preparation Allegations

• A District Court judge in Alabama has partially granted a defendant’s motion to dismiss claims it violated the Fair Credit Reporting Act, but denied the motion on a claim over how it conducted its investigation after the plaintiff disputed the debt. The court’s opinion offers a detailed look at what consumers must allege to state a viable report preparation claim and also reinforces the statutory obligations that apply once a dispute is submitted.

• More details here.

21 States Sue Trump Administration Over ‘Illegal’ Defunding of CFPB

• A coalition of nearly two dozen Democratic state attorneys general is asking a federal judge to force the Trump administration to keep the Consumer Financial Protection Bureau open, escalating the already-intense legal fight over whether the White House can effectively shut down the nation’s consumer finance watchdog by cutting off its funding.

• More details here.

Ed. Dept. to Restart Wage Garnishments in January: Report

• The Trump administration will restart wage garnishments for federal student loan borrowers in default beginning the week of January 7, marking the first time since early in the pandemic that the federal government will withhold paychecks to recover unpaid student loan balances, according to a report in The Washington Post.

• More details here.

WORTH NOTING: the governor of Arizona yesterday announced a plan to forgive $642 million in medical debt ... The three things leaders must do differently in 2026 to reduce burnout and boost well-being ... The governor of New York has vetoed a health information privacy measure ... If you feel like you are stuck in a rut, here are some ways to appreciate your life again ... At least one economist is predicting next year's income tax refunds will be the biggest ever ... If you want more money in your pocket, focus on your paycheck, not your portfolio ... How to protect your privacy when using AI assistants ... Which car models are losing their resale values the fastest?

Trailer Tuesday, part I

Trailer Tuesday, Part II

Webinar Recap: Helping Consumers From Being Scammed

Scams targeting consumers are becoming more sophisticated, more frequent, and harder to detect—posing serious risks not only to individuals, but also to the credibility and regulatory standing of the credit and collections industry. In this webinar, industry experts examined how fraud tactics have evolved, why no consumer demographic is immune, and what financial institutions, collectors, and creditors must do to protect consumers and their brands.

Panelists highlighted the rapid rise of fake text messages, phishing attempts, fraudulent repayment portals, and impersonation scams that mimic legitimate financial institutions. These schemes often rely on urgency, emotional pressure, and familiarity to manipulate consumers into revealing sensitive information or transferring funds. As one panelist emphasized, “It can happen to anybody—you don’t have to be elderly or unsophisticated.”

The discussion underscored that scams are no longer isolated incidents but systemic risks amplified by digital communication channels and economic pressure. Beyond direct consumer harm, panelists warned of growing reputational and regulatory consequences for organizations that fail to implement reasonable fraud prevention measures. Several states are already shifting liability toward financial institutions that do not adequately protect vulnerable consumers.

Speakers stressed the importance of proactive consumer education, strong verification controls, and ongoing monitoring of communication channels. Legitimate organizations must clearly define what they will and will not ask consumers to provide, ensure opt-in consent for digital outreach, and regularly review scripts and messaging for language that may raise fraud concerns. Industry collaboration and information-sharing were also identified as critical tools for identifying emerging scam trends before they spread.

🧠 Key Takeaways:

• Audit and refine consumer communications to reduce language that may trigger fraud concerns and clearly set expectations across phone, text, and email channels.

• Strengthen authentication and monitoring controls, including two-factor verification and escalation procedures for unusual consumer behavior.

• Invest in ongoing consumer education, reinforcing how to identify scams, verify legitimate contacts, and safely engage with financial institutions.

Webinar Recap: How to Handle Frequent Lawsuit Filers

AccountsRecovery.net, in partnership with Fiber by Clerkie, hosted a webinar exploring strategies for managing frequent lawsuit filers in the credit and collection industry. Moderator Dennis Barton led a panel featuring legal experts and industry leaders including Jack Gordon (WebRecon), Jessica Klander (Basford Remley), Xerxes Martin (Martin Golden Lion Watts), and Jared Buchanan (Southwood Financial).

Panelists discussed the growing challenge of consumers and attorneys who repeatedly file lawsuits under statutes such as FDCPA, TCPA, and FCRA. Gordon shared fresh data showing litigation trends rising across all major statutes in 2025, with TCPA class actions posing the greatest risk. He noted: “Make sure your house is in order, especially when it comes to TCPA.”

The conversation highlighted differences between pro se litigants—often using AI to draft polished but baseless complaints—and bulk-filing consumer attorneys who specialize in extracting settlements. Sovereign citizen claims were cited as particularly costly and disruptive, though courts are increasingly skeptical of their tactics.

Panelists emphasized the importance of intentionality in every communication, as Buchanan warned: “Anything you say can and will be used against you… maybe not in this lawsuit, but one or two years from now.” Klander added that settling with frequent filers often encourages repeat claims, making litigation a necessary deterrent in many cases.

Fiber by Clerkie showcased technology solutions that help agencies mitigate risk, including automated workflows to lock accounts, integrations with verification vendors, and AI tools that coach agents in real time to avoid litigation traps.

🧠 Key Takeaways:

• Identify and flag frequent filers early: Use litigation tracking tools to recognize high-risk individuals and attorneys.

• Balance settlement vs. litigation strategically: Settling may encourage repeat claims; fighting baseless suits can deter future filings.

• Leverage technology to reduce exposure: Automate account controls and use AI-driven tools to guide agents away from risky interactions.

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