Daily Digest - July 6, 2026

🎂 Happy birthday to: Jeremy Carr of OakStar Bank. Happy belated Birthday to: Christine Peltier of C3bank (July 5), Robert Rios of Rausch Sturm (July 5), Joe Luna of Applied Innovation (July 5), Daquan Hatcher of PRA Group (July 4), and Brian Sullivan of NCB Management Services (July 4).

🎉Congratulations for starting new positions: Shaun Fathallah as Senior Litigation Counsel at PRA Group.

NEW AI SURVEY

Have 90 seconds to help me out? Take this quick survey, sponsored by TCN, on how you are using AI, what you like about it, and what frustrates you.

New Digital Communications Report

The industry is optimistic. Placements are expected to climb. Consumers, it turns out, are more ready for digital than the businesses serving them.

New AI Event!

I am thrilled to announce a new live conference I am hosting. It’s an AI conference for the credit and collection industry. It will be held in Denver this September. Check out getbrainstorming.com for more information. And watch the video below to see me showcasing my outdoor skills.

If you are interested in being a speaker at the event, click here.

Consumers Are Turning AI Into a Daily Habit, and Money Management Is Part of the Routine

• The people on the other end of your calls and texts are getting comfortable letting AI handle their finances, and the longer they use it, the more they trust it. New data from PYMNTS shows experienced users are more than twice as likely to call AI essential for money management. See what that means for how consumers will expect to interact with you.

• More details here.

A MESSAGE FROM TCN

TODAY’S WEBINAR

UPCOMING WEBINARS

Report: CFPB Shows Signs of Life, But New Direction Raises Questions About Who Gets Supervised

• The CFPB is leasing office space, recalling employees, and issuing supervisory requests again, but this is not the Bureau you remember. A new report suggests smaller institutions may face more scrutiny while big ones get a lighter touch. Read what the agency's revival could mean for who ends up under the microscope.

• More details here.

Judge Denies Motion to Compel Arbitration in FCRA Identity Theft Case

• An arbitration clause is only as good as your proof that the plaintiff actually signed it. A federal judge in Kansas refused to send an FCRA identity theft case to arbitration because the lender could not show the person who signed the contract and the person suing were the same individual. See why the motion failed even though the plaintiff never responded to it.

• More details here.

Everyone Says Their AI Project Worked. The Numbers Say Otherwise.

• Two-thirds of contact center leaders call their latest AI project a success, yet more than half blew their budgets and nearly half of all projects are stalled. A new survey reveals the gap between what leaders claim and what the financials show, including the compliance risks lurking in unreliable tools. Find out what actually separates the winners.

• More details here.

Judge Dismisses Claims Against Two CRAs, But Lets FDCPA, FCRA Claims Proceed Against CU and Law Firm

• A pro se plaintiff's lawsuit over an allegedly concealed repossession survived motions to dismiss from a credit union and its collection law firm, thanks in part to a ruling that each new furnishing of inaccurate information can restart the FCRA's limitations clock. Find out which claims survived, which were tossed, and why the timing argument backfired.

• More details here.

State Appeals Court Won't Undo Judgment for Consumer Who Argued, But Never Proved, Lack of Notice

• A consumer told a Texas court he never received notice of the hearing that produced a judgment against him, but saying it in court is not the same as proving it. The appeals court ruled his unsworn statement was argument, not evidence. See why the judgment stood and what it says about the finality of judgments.

• More details here.

Compliance Digest - July 6

• A baker's dozen of rulings and regulatory developments, from Ari Derman, Cooper Walker, Nabil Foster, Ron Canter, Anastasia Caton, Lauren Burnette, Rick Perr, Brendan Little, Michael Poncin, Caren Enloe, Drew Cicero, Brent Yarborough, and David Israel, who weigh in on the CFPB's complaint portal overhaul and blocked layoffs, a string of FCRA and FDCPA rulings, arbitration wins, a judgment voided over faulty service, South Carolina's medical billing law, and the Bureau's new collaboration-first enforcement approach. Get the context behind the week's biggest compliance news.

• More details here

• This series is sponsored by Frost Echols

WORTH NOTING: A list of the 12 worst grocery items to buy at Walmart ... Artificial Intelligence is going to learn how to detect cancer from pigeons ... How to make chili is at the center of a culture battle between two merging banks ... Chances are, that photo you just took on your phone will never be looked at again ... How Cisco created an AI agent that stopped people from using shadow AI ... The best alternatives to Chrome and Safari if you are looking for a new browser ... Forgotten health habits that Americans should consider reviving ... How to feed a family of five at Chick-fil-A for under $45.

Music Monday, part I

Music Monday, Part II

Webinar Recap: Beyond Recovery: Measuring Client and Portfolio Profitability

The webinar explored how collection operations must move beyond recovery rates to truly understand profitability. Panelists emphasized measuring profitability at the client, portfolio, and segment levels, noting that account-level profitability is often negative. Key drivers include geography, regulatory changes, labor costs, and client relationship management. The discussion highlighted the importance of segmentation, long-term partnerships, and leveraging technology to reduce costs and improve margins. As Michael Lamm noted, “Our biggest cost still is labor. You gotta be really strategic about what your treatment strategies are gonna be for the labor that you’re gonna put on the portfolio.”

🧠 Key Takeaways:

• Segment portfolios strategically: With 70% of accounts yielding no payments, focus on segment-level profitability rather than account-level metrics. This ensures resources are directed toward the most viable segments.

• Factor in geography and regulation: State-level laws, right-to-cure requirements, and regional collectibility trends can significantly alter profitability. Agencies and debt buyers must incorporate these variables into portfolio analysis.

• Manage client relationships with diplomacy: When clients are unprofitable, explore renegotiating fees, adjusting service levels, or leveraging long-term reputational benefits before disengaging. As Cathy Fellabaum advised, reducing unnecessary calls or meetings can lower costs while preserving partnerships.

This session underscored that profitability is not just about dollars collected—it’s about operational efficiency, compliance awareness, and strategic client management. By combining segmentation, regulatory insight, and technology adoption, agencies and creditors can better align their operations with sustainable profitability.

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