Daily Digest - February 24, 2026

🎂Happy Birthday to the following: Tina Pereces of Joseph, Mann & Creed, David Morgan of Compattia Roccia Management Group, and Matthew Loker of Loker Law.

🎉Congratulations for starting new positions: Laura White as Co-Founder and Chief Executive Officer at Controlytics, Hillary Varvel as Chief Product Officer at Controlytics, Lisa Freeman as Director of Operations at ALTUS Commercial Receivables, and Annabel Swales as Senior Project Manager at PayPlan.

Coming April 20-22 … TCN’s C3 User Conference

Collector, CRAs Sued Over Handling of ID Theft Dispute

• A collection operation and three credit reporting agencies are facing claims of violating the California Consumer Credit Reporting Agencies Act, the California Identity Theft Act, and the Rosenthal Fair Debt Collection Practices Act among other claims, for not believing the plaintiff’s claim that the underlying debt was the result of identity theft.

• More details here.

• This series is sponsored by WebRecon

A MESSAGE FROM TCN

TODAY’S WEBINARS

UPCOMING WEBINARS

House GOP Bill Targets CFPB Complaint Database, Adds Attestation and Perjury Penalties

• A bill has been introduced in the House of Representatives by Rep. Andy Barr [R-Kent.] that would overhaul the CFPB’s public consumer complaint database as it exists today with a system that requires consumers to attest under penalty of perjury that their complaints are accurate, authorized, and raised with the company first, while also allowing financial institutions and collectors to close duplicative, frivolous, or unauthorized complaints and restricting the public release of complaint narratives. The proposal, H.R. 7588, branded as the “Eliminating Fraud in the CFPB’s Complaint Database Act,” would significantly change how complaints are submitted, verified, responded to, and disclosed, with direct implications for banks, fintechs, credit unions, and collection operations that regularly manage CFPB complaint workflows.

• More details here.

New York Issues Wide-Ranging Proposal to Regulate Buy Now, Pay Later

• The New York Department of Financial Services has proposed a comprehensive new regulatory framework for Buy Now, Pay Later products that would impose licensing and supervision requirements on BNPL providers, cap fees and interest, mandate credit-like disclosures and dispute rights, and tighten data privacy rules. The proposed rules, would apply to both zero-interest “pay-in-four” products and interest-bearing installment BNPL loans.

• More details here.

Judge Rejects Bid to Block Credit Reporting in FDCPA Case

• A District Court judge in New York has denied a plaintiff’s motion for a preliminary injunction that would have prohibited a defendant in a Fair Debt Collection Practices Act lawsuit from furnishing information about the debt to the credit reporting agencies. The request would have barred the defendant from reporting, furnishing, or re reporting a collection tradeline to the major consumer reporting agencies while the lawsuit proceeds. The plaintiff argued that continued credit reporting was causing ongoing harm through credit denials and adverse lending outcomes, and that the Court should step in to halt that activity during the litigation.

• More details here.

Texas Court Tosses FCRA Case Over Settlement Dispute on Tradelines

• A District Court judge in Texas has granted a defendant’s motion for summary judgment in a Fair Credit Reporting Act case over a disagreement between the plaintiff and the defendant stemming from a settlement of a previous lawsuit that included details about how many of the tradelines in question would be closed.

• More details here.

Controlytics Launches to Help Financial Institutions Build Scalable Compliance Programs

• Controlytics announced its official launch as a compliance services and technology company designed to help financial institutions assess, strengthen, and continuously manage their Compliance Management Systems (CMS) in an increasingly complex regulatory environment.

• More details here.

WORTH NOTING: What Elon Musk gets right about risk ... RevSpring has acquired TrustCommerce, a healthcare payment and security provider ... Things the middle class won't be able to afford in five years ... The Court of Appeals for the D.C. Circuit will hear arguments today in the CFPB case ... GetOutofDebt.org has released a free AI-powered debt advisor for consumers ... AI isn't the problem. People are the problem ... Five ways to help preserve your vision as you get older ... CarMax is paying $500k after claims it repossessed the vehicles of servicemembers on active duty.

Trailer Tuesday, part I

Trailer Tuesday, Part II

Webinar Recap: The ROI of Empathy: Quantifying the Impact of "Soft Skills" on Recovery

In a recent webinar hosted by accountrecovery.net and sponsored by Halsted Financial, industry leaders explored how empathy and soft skills can be measured and leveraged to improve recovery outcomes. Panelists Dennis Barton, Alison Atkinson, Ken Peck, and Troy Tratar emphasized that empathy is no longer optional—it is a proven driver of compliance, client satisfaction, and financial performance.

Ken Peck highlighted measurable benefits such as “reduced repeated calls, fewer disputes, and lower compliance risk.” Alison Atkinson reinforced the importance of first-call resolution, noting, “You get more flies with honey than vinegar.” Troy Tratar discussed the role of speech analytics in quantifying tone and word usage, showing how empathetic language can directly correlate with ROI. The panel also addressed balancing empathy with accountability, cautioning against overly long calls that drift off track while recognizing that genuine connections often lead to stronger payment commitments.
The discussion underscored a cultural shift: clients increasingly expect empathy in consumer interactions, sometimes even requiring specific phrases during audits. As Dennis Barton summarized, empathy is not just a “soft skill”—it’s a measurable business asset.

🧠 Key Takeaways:

• Operationalize empathy with analytics: Use speech analytics to track tone and word choice, linking empathetic communication to recovery performance.

• Balance compassion with resolution: Train collectors to listen and connect while maintaining structured call flows and time management to keep conversations productive.

• Embed empathy into culture and compliance: Encourage psychological safety, coach agents to achieve both compliance and collections goals, and align with client expectations for empathetic engagement.

This webinar makes clear that empathy is more than a human touch—it’s a strategic advantage that drives measurable recovery outcomes across debt collection, financial services, and healthcare.

Webinar Recap: How to Coach Agentic AI/Prompting

Hosted by Mike Gibb of accountrecovery.net and sponsored by CSS Impact, the session explored how Agentic AI can transform debt collection operations. Panelists emphasized that AI’s effectiveness depends on how well it is coached, prompted, and integrated into workflows. They discussed governance frameworks, onboarding digital agents like employees, and the importance of context models and feedback loops. Practical prompting strategies and the balance between autonomy and guardrails in agentic AI were highlighted as critical for compliance and operational success.

🧠 Key Takeaways:

• Establish Governance & Compliance Frameworks: Clear rules and annual training ensure safe AI adoption.

• Onboard AI Like Human Agents: Treat AI as a digital employee with defined roles and success metrics.

• Use Context Models & Feedback Loops: Providing reusable context documents and asking AI how prompts could be improved strengthens accuracy and relevance.

The panel agreed that coaching AI is a two-way process: organizations must provide structure, context, and feedback, while remaining aware of AI’s limitations. As Russell Janab cautioned, “AI has done a fantastic job about almost convincing humanity that it is sentient, but that’s really not the case.” For debt collection and financial services, effective prompting and governance are essential to unlock AI’s potential while safeguarding compliance and consumer trust.

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