Daily Digest - July 8, 2026

🎂 Happy birthday to: Doug Handschumacher of Crown Asset Management, Jeff Ritner of Joseph, Mann & Creed, Eric Najork of CBHV, Rachel Carlson Toth of Self-Help Credit Union, Gabriel Grover of EXL, and Stephanie Edwards of Meritize.

🎉Congratulations for starting new positions: Lee Waldron as Principal Product Owner of RSi.

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.

90-Day Clock Starts for 7M Borrowers as SAVE Plan Ends, With Default Wave Looming

• The clock is now ticking for nearly 7 million federal student loan borrowers who have 90 days to pick a new repayment plan or get defaulted into the most expensive one, while Treasury permanently resumes wage garnishments. With delinquencies and defaults projected to hit 12.5 million by year-end, the ripple effects will show up in credit scores and recovery rates across every asset class in your portfolio. Read what the next 90 days could mean for the industry.

• More details here.

A MESSAGE FROM TCN

TODAY’S WEBINAR

UPCOMING WEBINARS

Judge Rules Time-Barred Collection Suit Violated FDCPA, Rejects Related Licensing Claim

• A New Jersey federal judge ruled that a debt buyer and its law firm violated the FDCPA by filing suit three years after the statute of limitations expired, rejecting an argument that a pre-printed "(SEAL)" notation stretched the clock to 16 years. The consumer didn't win everything, though — the judge tossed a claim tied to the debt buyer's lack of a state lending license. Read why one claim survived and the other didn't.

• More details here.

Judge Denies MTD Where CRA Used the Same Furnisher to "Verify" Its Own Data

• A Massachusetts federal judge is letting an FCRA suit proceed against a consumer reporting agency that "verified" a false report of alcohol abuse treatment by checking with the very furnisher that supplied the bad data in the first place. The ruling is a reminder that rubber-stamping a furnisher's confirmation may not count as a reasonable reinvestigation. Read what the judge had to say about how disputes should be handled.

• More details here.

House Dems Seek Industry Input on AI Regulation in Financial Services

• House Financial Services Committee Democrats have issued a 54-question RFI that reads like a roadmap of how they'd regulate AI in financial services, with questions on explainability, third-party vendor risk, and liability that land squarely on the collections industry. If your organization is deploying AI, or buying it from a vendor, this is your chance to see what may be coming — and to weigh in. Read what the Committee wants to know.

• More details here.

Hawaii to Sign Medical Debt Buyback Law

• Hawaii's governor signs a bill tomorrow putting the state itself into the business of buying and forgiving residents' medical debt, complete with a $500,000 appropriation and an exemption from standard procurement rules. The dollars are modest, but the signal to agencies and debt buyers holding medical debt portfolios is not. Read what the new law means for the secondary market.

• More details here.

Utility Bills Are Becoming a Bigger Collection Risk as Heat, Rates Squeeze Consumers

• Two new reports show utility affordability morphing from a seasonal hardship into a year-round budget crisis, with electricity prices up 7.3% in a year and nearly a third of U.S. households facing energy insecurity. When 30% of households are skipping basic necessities to keep the lights on, every other bill in the stack feels the squeeze. Read what the data says about where household budget stress is headed.

• More details here.

34 Companies Seeking Collection Talent

• Looking for your next opportunity, or your next hire? This week's roundup features 34 open positions across the industry, from entry-level collections roles to an AVP of Artificial Intelligence, spanning agencies, banks, fintechs, and healthcare. Browse the full list — and if you're hiring, post your listing on the AccountsRecovery.net jobs board for free.

• More details here

WORTH NOTING: Your daily coffee might be doing your liver a lot of good ... How much the average American earns from investments every year ... A cool way to see if you can stop a penalty kick ... I thought it was just me that did this. Turns out I am far from alone ... What a divorce coach wished couples knew before going down that road ... Southwest Airlines is roasting passengers who get up as soon as a plane gets to the gate ... Does working out in the evening ruin your sleep? ... The average new car payment continues to move in one direction.

Wisdom Wednesday, part I

Wisdom Wednesday, Part II

Webinar Recap: Recognizing and Handling Consumer-Side AI Agents on Your Calls

The panel discussed the rapid rise of consumer-side AI agents in debt collection interactions, highlighting how these tools are reshaping the communication landscape. Once limited to agencies, advanced technology is now in the hands of consumers—screening calls, generating disputes, negotiating settlements, and even acting as intermediaries during live conversations.

Brooke Teal noted that AI is “everywhere,” from call screening to dispute letters, prompting her company to implement formal processes for suspected AI communications. Scott Wortman emphasized the prevalence of automated disputes and warned that bots are increasingly capable of guiding consumers in real time. Shelly Gensmer-Cleek shared examples of AI-generated disputes with obvious formatting errors, stressing the compliance risks of engaging with unauthorized tools. Heath Morgan pointed to debt settlement companies deploying AI bots to negotiate, raising concerns about unauthorized disclosure of sensitive information.

Panelists agreed that while current AI agents often lack payment authorization, future iterations will likely gain that capability. Agencies must prepare now by developing defensible policies, authentication measures, and durable records to tie AI actions back to consumers. As Wortman summarized: “A consumer’s AI agent is not the consumer. It’s not a legal person. But it is better understood as a tool, a communication channel, purporting to act on behalf of the consumer.”

🧠 Key Takeaways:

• Establish Clear Policies: Define whether and how your agency will interact with consumer AI agents, including when to disengage.

• Train Agents to Spot AI: Educate staff on common “tells” such as delays, overly formal language, or perfect recitation of account details.

• Implement Authentication & Documentation: Use multi-factor verification or touch-tone prompts to confirm consumer authorization, and require agents to document all suspected AI encounters to mitigate compliance risks.

This webinar underscores the urgency for agencies to adapt policies and processes as consumer AI tools evolve from stall tactics to potentially binding negotiation agents.

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