Daily Digest - May 20, 2026

🎂 Happy Birthday to: Michelle Whatley of Exeter Finance,
Mickey Gottlieb of Michael R. Gottlieb Consulting, and Shoumik Chatterjee of Prodigal.

🎉Congratulations for starting new positions: Eric Georgeopoulos as Collections Manager at Sequium Asset Solutions.

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.

Judge Rejects Bona Fide Error Defense in Improper Garnishment Case

• A District Court judge in Washington has granted a partial motion for summary judgment against a debt collector that issued and served a writ of garnishment against a consumer who no longer owed any money, ruling the company could not rely on the Fair Debt Collection Practices Act’s bona fide error defense. The judge held the collector was liable under both the FDCPA and Washington’s Consumer Protection Act after the company admitted the garnishment was sent “in error.”

• More details here.

A MESSAGE FROM TCN

TODAY’S WEBINAR

UPCOMING WEBINARS

White House Pushes Tougher Customer Due Diligence While Expanding Fintech Payment Access

• President Trump yesterday signed two executive orders that could significantly reshape both compliance expectations for financial institutions and the competitive landscape for fintech firms seeking deeper access to the U.S. payments system. One order focuses on tightening customer identification, anti-money laundering oversight, and underwriting scrutiny tied to undocumented immigrants, while the other pushes regulators to reduce barriers for fintech and digital asset companies seeking broader participation in the financial system.

• More details here.

States Sue Ed. Dept. Over Rule Limiting Student Loans

• A coalition of 24 attorneys general and two governors has sued the Department of Education over a new rule that could sharply limit federal student loan access for students pursuing nursing, physician assistant, physical therapy, occupational therapy, speech-language pathology, and other healthcare-related graduate programs. The lawsuit argues the Department unlawfully narrowed the federal definition of “professional degree,” potentially forcing students into higher-cost private loans or pricing them out of advanced healthcare education entirely.

• More details here.

Judge Dismisses FCRA Lawsuit After Plaintiff Claimed Bankruptcy Accounts Were Unauthorized

• A District Court judge in Illinois has dismissed a Fair Credit Reporting Act lawsuit against a credit reporting agency after finding the plaintiff could not plausibly claim certain accounts on his credit report were unauthorized or inaccurate when he had previously listed those same accounts in his Chapter 7 bankruptcy filing.

• More details here.

Credit and Debit Dominate, But Cash Remains Critical Backup for Millions of Americans

• Even as digital wallets, mobile banking, and real-time payment tools continue to expand, the Federal Reserve’s latest Diary of Consumer Payment Choice suggests that cash remains deeply embedded in the financial lives of many Americans, especially older consumers, lower-income households, and rural residents. For companies in collections, lending, and consumer finance, the findings reinforce a broader operational reality: payment choice still matters.

• More details here.

Your Agents Are Pasting Consumer Data into ChatGPT Right Now. Do You Know What Happens Next?

• Every day, collection agents, compliance officers, and operations staff across the ARM industry use generative AI tools to draft letters, summarize accounts, respond to disputes, and analyze data. Many of them are doing it without their employer’s knowledge, without a governance policy in place, and without understanding what happens to the consumer data they enter.

• More details here.

40 Companies Seeking Collection Talent

• One of the clearest trends in this week’s job listings is that companies across healthcare, banking, collections, and fintech are pouring resources into revenue cycle, analytics, AI, and fraud strategy. If you want a glimpse into where the industry is headed, this week’s hiring activity tells a pretty compelling story.

• More details here. 

WORTH NOTING: The cost of insurance, regardless of what kind, is stressing out consumers ... Where Americans are moving and how that is reshaping healthcare ... Why you may want to consider becoming a saver ... Google has redesigned its search box for the first time in 25 years ... If anyone cares, I will die on the hill of Diet Coke over Coke Zero ... A survey about consumers' views toward summer vacations and credit cards ... Google is betting on consumers allowing robots to spend their money ... The nation's largest hurricane exposure zone might not be where you think it is.

Wisdom Wednesday, part I

Wisdom Wednesday, Part II

Webinar Recap: Retaining Top Performers in a Tough Labor Market

In today’s competitive labor market, retaining top performers has become a critical challenge for collection agencies, debt buyers, fintechs, banks, credit unions, consumer finance companies, and healthcare providers. Panelists emphasized that turnover is often misattributed to external competition or pay alone. In reality, employees frequently leave due to leadership gaps, lack of growth opportunities, or outdated processes. As Jason Koontz noted, “They’re leaving a leader, they’re leaving a manager, they’re leaving a process or a technology… it’s almost always us.”

The discussion highlighted the importance of proactive engagement through stay interviews, focus groups, and transparent communication. James Taylor reinforced that organizations must be willing to evolve: “Just because we’ve always done something a certain way doesn’t mean that’s the way we’ve got to continue.” High performers, in particular, are at greater flight risk if overlooked, making regular check-ins and career pathing essential.

🧠 Key Takeaways:

• Implement Stay Interviews Early and Often 
  Conduct structured check-ins at 15, 30, and 45 days post-training to identify gaps and prevent early attrition. Agencies that retain employees past 90 days often see long-term stability.

• Prioritize Growth and Career Pathing 
  Provide advancement opportunities and involve high performers in leadership development. As Cole Ackerman shared, lack of growth—not pay—was the main reason he left past organizations.

• Strengthen Communication and Transparency 
  Share company goals openly, listen without defensiveness, and maintain regular touchpoints with top performers. This builds trust and reduces the risk of disengagement.

This webinar underscored that retention is not just about compensation—it’s about culture, leadership, and growth. As Dennis Barton observed, the old “shut up and get back on the line” approach no longer works; today’s workforce demands engagement, respect, and opportunity.

Webinar Recap: What the New California Regulator Means for the Credit & Collection Industry

California has launched a new Business and Consumer Services Agency (BCSA), appointing former CFPB Director Rohit Chopra to lead it. This agency will oversee multiple regulatory bodies, including the Department of Financial Protection and Innovation (DFPI), with the reorganization taking effect July 1. Panelists Joanne Needleman and Manny Newburger emphasized that Chopra’s leadership signals a shift toward aggressive enforcement, politicization of regulation, and expanded oversight of financial services.

Needleman noted, “I call this the revenge tour… he’s going to finish the things he couldn’t finish at the CFPB.” Areas of focus are expected to include medical debt, junk fees, BNPL regulation, and UDAAP codification. Newburger added, “This is Dodd‑Frank 2.0 at the state level,” warning that California could become ground zero for federal‑state preemption battles.

The panelists expressed skepticism about claims of improved efficiency, citing licensing delays that often stretch into years. Enforcement actions, they argued, will likely increase because they generate press releases and political capital, unlike confidential supervisory exams. With Newsom’s presidential ambitions in play, Chopra’s appointment is seen as both a regulatory and political move to appease progressives.

🧠 Key Takeaways:

• Prepare for Enforcement: Expect more aggressive enforcement actions under California’s consumer protection laws, including Rosenthal Act, Debt Buyers Act, and FCRA/TILA at the state level.

• Strengthen Compliance Programs: Review licensing, BNPL, and fee structures to ensure readiness for scrutiny. Licensing delays can quickly escalate into enforcement actions.

• Monitor Political and Regulatory Shifts: Chopra’s priorities will drive DFPI’s agenda. Stay alert to rulemaking around junk fees, BNPL, and UDAAP, as well as potential preemption battles with federal regulators.

This development represents a significant shift for debt collection agencies, debt buyers, fintechs, banks, credit unions, consumer finance companies, and healthcare providers operating in California and beyond.

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