Daily Digest - June 12, 2026

🎂 Happy Birthday to: Kevin Andewiel of The Cascade365 Family of Companies, and Motti Edelstein of Sutter Health.

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.

🚨New Training Bytes Video Released!

Check out the newest Training Bytes video! Each week, an expert from the accounts receivable management industry will share how he or she would handle different scenarios that collectors often face. This week, Sherrika Newman from Revco Solutions shares advice on  how to handle consumers when it’s clear English isn’t their first language. Thanks to Peak Revenue Learning for sponsoring this series! Click on the image below to view this week’s episode!

Logo Madness!

It’s time to crown the best logo in the industry. Full bracket available here so you can track the competition. Click on the link underneath the logo to choose your winner. Voting is open for 24 hours.

Collector Facing FDCPA Class Action Over Missing SOL Notice in MVN

• For those of you who have been around since before Regulation F went into effect, you might remember the days when there was much hand-wringing and consternation about a particular aspect of the Model Validation Notice: no, not the scissors, but the itemization date. Collectors had to choose from one of five different dates: the last statement date, the charge-off date, the last payment date, the transaction date, or the judgment date when itemizing a debt. The issue is that the notice didn’t require collectors to inform consumers which of those dates was being used. A collection operation is facing a Fair Debt Collection Practices Act class action because it allegedly failed to include a notice that a debt was time-barred because the itemization date that was used when the Model Validation Notice was sent to the plaintiff was allegedly outside of the window for a collection lawsuit to be filed.

• More details here.

• This series is sponsored by WebRecon

A MESSAGE FROM TCN

TODAY’S WEBINAR

UPCOMING WEBINARS

Treasury’s Student Loan Takeover Comes With a Track Record, and It Isn’t Pretty

• A new Congressional Research Service report is raising questions about whether the Department of the Treasury is ready to take over servicing of the federal government’s defaulted student loan portfolio, a transfer that would more than quadruple the number of debtors handled by its Bureau of the Fiscal Service.

• More details here.

Judge Keeps Student Loan Servicing Suit in Federal Court, Refuses to Dismiss Claims

• A District Court judge in California has denied a student loan servicer’s motion to dismiss claims that it violated the Rosenthal Fair Debt Collection Practices Act, the state’s Student Borrower Bill of Rights, and other consumer protection laws, while also denying the plaintiff’s motion to remand the case to state court.

• More details here.

Senate Bill Would Force Financial Firms to Disclose AI Exposure

• Sen. Elizabeth Warren [D-Mass.] and Sen. Richard Blumenthal [D-Conn.] have introduced legislation that would require financial institutions to disclose their exposure to the artificial intelligence sector, a signal that the debt financing the AI buildout is now squarely on the radar of lawmakers worried about systemic risk.

• More details here.

Judge Recommends Summary Judgment for Collector in TCPA, FDCPA Case Over Text Messages

• A defendant has won a recommendation of summary judgment in a lawsuit accusing it of violating the Telephone Consumer Protection Act and the Fair Debt Collection Practices Act by texting a consumer about an unpaid medical debt and allegedly failing to send a validation notice.

• More details here.

Consumers Brace for More Missed Payments as Financial Outlook Sours, Fed Survey Finds

• Consumers are growing more pessimistic about their ability to stay current on their debts, a warning sign for the accounts receivable management industry as the New York Fed’s May Survey of Consumer Expectations showed deterioration across nearly every measure of household financial health.

• More details here.

Trump Administration Floats Insurer Loans to Cover Out-of-Pocket Medical Costs

• The federal government has a new suggestion for patients facing crushing out-of-pocket medical costs: borrow the money from their health insurance company, according to a report in yesterday’s New York Times. Tucked inside a 1,121-page final rule governing how the Affordable Care Act marketplace will operate next year, the Trump administration is encouraging insurers to consider offering loans to enrollees who face large bills before hitting their deductibles.

• More details here

USCB America Names Ralph Keith Senior Director, Business Development

• USCB America is thrilled to announce the appointment of Ralph Keith as Senior Director, Business Development.

• More details here

WORTH NOTING: A detailed breakdown of Virginia's new consumer debt default judgments act ... It's likely that the people in your office who know the most about AI are the ones who are breaking the rules ... How to manage kids' screen time during the summer ... Experian and Snapchat are bringing a financial education pilot program to social media ... If you feel like you are overdue for a self-care reset, you are not alone ... This might be the best site for teaching people all the different ways to tie your shoes ... An economist has a theory that smartphones are the reason why women are having fewer babies ... The airport "red zone" is a real thing and why it triggers anxiety for so many people.

Funny Friday, part I

Funny Friday, Part II

Webinar Recap: Consumer Attorneys Weigh in on AI

In a recent AccountsRecovery.net webinar sponsored by InterProse, a panel of consumer attorneys explored how artificial intelligence (AI) is reshaping litigation and client interactions. Moderated by Dennis Barton of Barton Law Group, the discussion highlighted both opportunities and challenges AI presents for the credit and collection industry.

Panelists David McGlothlin (Kazerouni Law Group), Jeffrey Sand (Weiner & Sand), and Peng Shao (R23 Law) noted that consumers are arriving better prepared, often armed with AI‑generated summaries and legal theories. While this preparation can improve documentation and intake efficiency, it also creates significant hurdles. AI frequently inflates case values, misinterprets statutes, and emboldens pro se litigants to file more sophisticated pleadings.

Jeffrey Sand observed, “AI tells them what they want to hear… It tells them they have a half‑million‑dollar case, and you’re going, ‘Your case is worth $15,000.’” McGlothlin added that confirmation bias driven by AI often leads clients to reject reasonable settlements. Shao emphasized that while AI improves factual summaries, it also complicates client management by fostering unrealistic expectations.

From the industry perspective, Greg Ruffino of InterProse introduced Rainmaker AI, embedded within the ACE collections platform. Rainmaker supports compliance, workflow automation, and defensible communication handling, ensuring agencies can match consumer capabilities responsibly.

🧠 Key Takeaways:

• Prepare for AI‑empowered consumers: Expect clients to arrive with AI‑generated pleadings and inflated expectations; strengthen intake processes to recalibrate early.

• Anticipate rising pro se litigation: AI enables consumers to draft more sophisticated filings, increasing defense costs and nuisance settlements.

• Leverage compliant AI tools: Agencies should adopt secure, workflow‑integrated AI solutions like Rainmaker to balance efficiency with compliance.

This webinar underscored AI’s dual role: empowering consumers while complicating litigation. For industry professionals, the challenge is to adapt quickly, manage expectations effectively, and deploy AI responsibly to remain competitive.

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