Daily Digest - July 9, 2026

🎂 Happy birthday to: Adam Loftus of Bridgecrest and Abhishek Shah of Prodigal.

🎉Congratulations for starting new positions: Robert Rock as Director of Collections and Recovery at Brex.

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.

Getting to Know Rami Haddad of PRA Group

• When it comes to the areas of litigation, compliance, and data privacy at PRA Group, the intersection of those three non-overlapping departments is Rami Haddad. That he not only can handle, but thrive in managing three different areas of business at a company of PRA’s size tells you just about everything you need to know about him. Read on to learn the rest.

• More details here.

• This series is sponsored by TEC Services Group

A MESSAGE FROM TCN

TODAY’S WEBINAR

UPCOMING WEBINARS

N.J. Supreme Court Rules Consumers Can't Sue to Void Debts Bought by Unlicensed Debt Buyers

• New Jersey's highest court has unanimously shut the door on a class action seeking to void debts purchased by unlicensed debt buyers, ruling the state's Consumer Finance Licensing Act gives borrowers no private right of action. The decision, which traces the statute's history back to 1914, leaves enforcement squarely with the state and offers debt buyers a significant precedent in one of the industry's most active licensing battlegrounds.

• More details here.

Judge Dismisses FDCPA Class Action Over Collection Text Messages

• A collector that sent text messages with hyperlinks to full collection letters has defeated a putative class action, but not for the reasons you might expect. The plaintiff abandoned his original harassment and consent claims mid-case in favor of a novel theory that texts on a phone screen are visible to third parties, a theory a Minnesota federal judge found nowhere in the complaint. The ruling is a useful read for anyone texting consumers, and a reminder that plaintiffs' theories can evolve faster than their pleadings.

• More details here.

Judge Sides with Collector Accused of Accessing Credit Report Without Permission

• Does a collector violate the FCRA by pulling a credit report on a debt the consumer swears she never owed? Not if it had reason to believe it was collecting a debt, a Maryland federal judge has ruled, granting summary judgment to a collector that ran two soft inquiries on an assigned account. The opinion is a clean articulation of the permissible purpose standard, and features a pro se plaintiff who argued facts were simultaneously disputed and undisputed, depending on which motion she was briefing.

• More details here.

Americans Lost an Estimated $68 Billion to Scams in 2025, Far Outpacing Federal Data

• A new Gallup study puts consumer scam losses at $68 billion last year, more than four times what the FTC's data captures, with 17% of scams involving a false claim that the victim owed money. For collectors, the findings cut two ways: fraudulent "you owe" contacts are eroding trust in the very channels legitimate outreach depends on, and nearly half of victimized households report real financial hardship that diminishes their capacity to pay. With 82% of Americans saying government is doing too little, new rules touching the ARM industry may not be far behind.

• More details here.

Regulators Delay Sweeping HIPAA Cybersecurity Mandates as Privacy Rule Changes Move First

• Agencies collecting medical debt just got at least another year before the most sweeping rewrite of the HIPAA Security Rule in two decades takes effect, with final action now pushed to July 2027 or later. But the delay is relief, not repeal: the proposed mandates on encryption, multifactor authentication, and annual third-party verification would reach business associates and their subcontractors, and OCR is moving Privacy Rule changes and records-access enforcement forward in the meantime.

• More details here.

States Secure $45M Settlement With Cash App Parent Over Fraud Controls

• A bipartisan coalition of 46 state attorneys general has extracted $45 million from Block, Inc. over allegations that Cash App misled consumers about safety and failed to control fraud on the platform. The settlement, which preserves a prior CFPB redress obligation of up to $120 million, is the clearest signal yet that state AGs are prepared to backstop federal enforcement against fintechs whose products look like bank accounts but lack the protections.

• More details here

WORTH NOTING: Here is a list of the cities where cat lovers rule ... A look at the states with the most, and fewest, doctors per capita ... Why is it so hard to measure the ROI of AI investments? ... Climates with hotter, drier weather will have water bills that are twice as high as other areas ... If you think you aren't the biggest role model for your kids, think again ... Tips for planning the perfect long weekend getaway ... A restaurant owner reveals the biggest mistake diners make before ordering ... How one text message was used to steal someone's entire life.

Top 10 Thursday, part I

Top 10 Thursday, Part II

Webinar Recap: Collecting Through Bankruptcy: Discharge Reporting and Metro 2 Done Right

The webinar tackled the operational and compliance complexities of handling accounts once bankruptcy enters the picture. Panelists emphasized that a bankruptcy notice doesn’t end obligations - it changes them. From immediate steps to cease collections, to navigating differences between Chapter 7 and Chapter 13, and aligning Metro 2 reporting with case law, the discussion highlighted how missteps can quickly escalate into compliance risks. The panel also debated whether to zero out balances or continue reporting them, underscoring the importance of risk-based decisions and documentation.

🧠 Key Takeaways:

• Cease collections immediately upon notice: As Sydney Heacox stressed, “First thing, anytime you get a notice, pull it out of active collections. I never advise taking risks with the automatic stay.” Notify all departments and third parties to prevent inadvertent contact.

• Understand bankruptcy distinctions: Jason Town noted that Chapter 7 cases resolve quickly, while Chapter 13 can last 50–60 months. Reporting obligations differ depending on dismissal, discharge, or conversion, making systemic processes essential.

• Balance reporting requires risk assessment: Kevin Kirchman explained Metro 2 now allows flexibility—balances can be reported as zero or as discharged amounts. Bruce Jobe cautioned that failing to update trade lines post‑discharge, as seen in the Anderson case, can create liability. Firms must weigh consumer litigation risks against CRA and regulatory concerns.

Bankruptcy reporting is not one‑size‑fits‑all. Secured versus unsecured debt, co‑borrowers, and reaffirmations all require tailored approaches. Automation and dedicated bankruptcy teams reduce errors, while clear documentation supports compliance. As Bruce Jobe summarized: “Dismissal means it never existed… Discharge means the debt has been adjudicated.” For creditors and collectors, the key is balancing operational efficiency with legal accuracy to protect both consumers and institutions.

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