Daily Digest - September 30, 2025

 🎉🎂 Happy Birthday to: Brandon Medlin of LocateSmarter, Garrett Jorewicz of Credit Union 1, and James Perlberg of R1 RCM. Happy belated Birthday to Brit Suttell of Barron & Newburger.

 🎉 Congratulations for starting new positions: Robert Lamaster as Assistant Vice President of Sales at State Collection Service.

💬 📲 ☕️ Last Day to Get Your Text On!

Today is the last day to sign up for the monthly group text chat or coffee chat. If you are looking to expand your network of friends and peers, hear what is keeping others in the industry awake at night, and solve all of the world’s problems, you should sign up! You’re already going to spend a good chunk of your day on the phone texting anyway. Make it productive. 😁

Sign up here!

Dispute Over Amount, Use of ‘Form Letters’ Leads to FDCPA Suit

• Collection agencies are often caught in the middle between consumers and the original creditors. When there is a disagreement over the amount of a debt, who is the one that gets in trouble? The collector. A consumer who feels the owner of the apartment building she lived in for 11 months is overcharging her has filed a lawsuit against the collector that the owner is using to try and recover the debt, accusing it of reporting information to the credit bureaus that is incorrect “after several disputes clearly showing the debt is fraudulent.” Among the issues was that the collector only used “form letters” when responding to the plaintiff’s disputes.

• More details here.

• This series is sponsored by WebRecon

A MESSAGE FROM TCN

TODAY‘S WEBINAR

UPCOMING WEBINARS

Judge Tosses Sovereign Citizen’s FDCPA Suit

• Sovereign citizens remind me of a great line from “Hoosiers.” Essentially, there are two types of dumb: the guy that gets naked and runs out in the snow and barks at the moon, and the guy who does the same thing in my living room. First one don’t matter, the second one you’re kinda forced to deal with. Sovereign citizen cases are fun to hear about and read about but not always fun to deal with when you are on the other side. In a case that was defended by Jonathan Robbin of J. Robbin Law, a District Court judge in New York has granted a defendant’s motion for judgment on the pleadings in a Fair Debt Collection Practices Act case that was started because a sovereign citizen claimed not to have received all the documents he requested when he disputed the debt.

• More details here.

NTEU Petitions for En Banc Review of CFPB Layoff Ruling

• The National Treasury Employees Union (NTEU) is asking the full D.C. Circuit to rehear the case over mass layoffs at the Consumer Financial Protection Bureau, arguing that a recent panel decision clears the way for the Trump administration to effectively abolish the agency in violation of the Constitution.

• More details here.

Reports Spotlight Medical Debt Lawsuits, Wage Garnishments

• Lawsuits and garnishments for unpaid medical debts are back in the news, following a pair of published reports detailing the practice and spotlighting a hospital in Ohio and healthcare facilities in Colorado. Together, the investigations underscore how aggressive collection tactics are reshaping the financial and healthcare realities of many patients, while also raising tough questions for providers, revenue cycle managers, and collectors.

• More details here.

WORTH NOTING: Hospitals and doctors could lose $32 billion in revenue next year if ACA subsidies expire, according to a report ... One out of every six homebuyers have given up their quest in the past five years ... Adrienne Harris, the Superintendent of the New York Department of Financial Services, is leaving her post next month ... A look at how a medical debt bill that failed this year in Montana ... The New York Times does a deep dive on CFPB Acting Director Russell Vought ... Americans get twice as many scam calls as individuals in other countries, according to new research ... Why now is the time to start fighting against the winter blues ... The mental health myths that are holding you back.

Trailer Tuesday, part I

Trailer Tuesday, Part II

Webinar Recap: Overcoming Communication Barriers in Early-Stage Collections

The webinar “Overcoming Communication Barriers in Early-Stage Collections,” sponsored by CSS Impact, explored how lenders and collectors can better engage consumers before accounts reach charge-off. Moderator Mike Gibb was joined by industry experts Saket Sahoo, Managing Partner of Connect BPS, and Dave Wasik, Partner at Second Order Solutions, who shared strategies for balancing recovery efforts with preserving customer relationships.

Panelists emphasized that early-stage collections should be seen as a “customer success moment” rather than just a prelude to charge-off. By offering timely support, creditors can reduce delinquency rates while building loyalty. Wasik noted, “Early stage delinquency is one of those moments that matter… helping a customer get out of delinquency is an expression of the brand promise.”

The discussion highlighted how behavioral data can reveal consumer intent and risk level. Signals such as autopay defaults, portal visits without payment, or deleted mobile apps can inform tailored outreach. Sahoo stressed the importance of small “nudges” through digital channels, such as SMS and email reminders, to resolve issues quickly and with minimal friction. Both panelists agreed that messaging tone is crucial—collections efforts should reflect empathy and align with the institution’s broader brand values.

The panel also examined lessons from post-charge-off collections, where building trust and using omnichannel strategies have become standard. Applying these practices earlier in the delinquency cycle can increase engagement and reduce losses.

🧠 Key Takeaways:

• Leverage data-driven insights: Track behavioral signals like autopay failures or portal activity to identify high-risk accounts early.

• Adopt a supportive communication tone: Frame outreach as helpful nudges rather than aggressive demands to protect relationships and encourage repayment.

• Integrate omnichannel strategies: Use a mix of SMS, email, digital portals, and phone calls to meet consumers where they are while ensuring compliance.

By combining technology, behavioral insights, and empathetic messaging, creditors can transform early-stage collections into an opportunity for long-term customer retention.

The Daily Digest is sponsored by TCN