The modern debt collection industry is faced with a unique challenge that’s hard to pin down. Consumers are “ghosting” debt collection phone calls more than ever before. In fact, the answer rates for unknown or unrecognized calls are under 15%, and call screening tools have become mainstream. We’re in an era of “consumer avoidance,” where collection strategies need to shift from prioritizing high-volume calling to digital channels.  Anytime a consumer “ghosts” your business, a repayment becomes less likely. If you want to build a collection strategy that minimizes vanishing consumers, keep reading to discover tips to help improve engagement and recovery rates. The Cost of Hesitation for Debt Collection Strategies In most cases, phone calls are no longer a viable primary (or exclusive) tool for effective debt recovery. The “Cost of Hesitation" is at an all-time high with consumers. It’s the idea that when faced with communications from unknown sources, most people will default to blocking or ignoring them. This is especially true with calls since it’s common to find the notion of talking to a stranger over the phone as stressful or awkward. Plus, the rise of robocalls and financial scams has pushed “ghosting” into a reflex.  It’s estimated that roughly 75% of consumers use some type of call screening software to block unwanted communications preemptively. This reinforces current trends that say consumers want a frictionless digital experience that gives them the power to engage with financial obligations on their own terms. Some collection strategies have adopted sending empathetic “warm-up” messages through digital channels that provide a clear next step to meet those expectations. To cut through feelings of uncertainty, emails or text messages should include a piece of personal information or account information to increase consumer confidence in its authenticity. Channel Preference Optimization is Key One way to interpret consumer “ghosting” is that it’s a product of using a collection strategy that doesn’t reach out through a preferred communication channel. A recent TransUnion survey found that consumers are 40% more likely to engage when a message is sent through a preferred channel. Since more consumers prefer digital channels, debt collection strategies should consider moving to an omnichannel approach. An omnichannel debt collection strategy gives your business more opportunities to connect with consumers through channels they engage with.  To make this approach more effective, machine learning can analyze engagement data to find the best channel option for each individual account. By making the effort to reach out through a preferred channel, consumers are less likely to “ghost” your messages, and more likely trust the information that’s provided. By adding these elements together, collection strategies become more consumer-centric and create a low-pressure environment to help foster more repayments.   Why Messaging is Essential in Debt Collection When someone is faced with aggression or feelings of shame, “ghosting” is a natural response. If a debt collection message or experience feels like being scolded, there usually isn’t a high chance of success. It’s important for debt collection strategies to be transparent with consumers and present options instead of consequences.  One of the easiest ways to put this idea into practice is with your debt collection messaging. For example, a message saying “payment is due immediately”, puts added pressure on consumers, and increases the chance of “ghosting”. While a message stating “you have options to resolve your balance” is more likely to foster engagement.  Businesses that want to reduce consumer “ghosting” in debt collection should consider introducing more empathy into their messaging. Every debt collection message is an opportunity to acknowledge what that consumer is going through. Part of this can be achieved by having approved content templates with different tones. If you’re using emails for recoveries, it can help to have a variety of messages that are empathetic,  light-hearted, personalized based on engagement data, and more.  Each consumer has preferred messaging they’re more likely to connect with. By having more approved content options, your recovery strategy is better prepared to engage consumers. Plus, the right AI tools can analyze data to help find the best message and tone for each individual account. What’s the Link Between Ghosting and Collections Compliance? Traditional debt collection strategies often use increased message frequency to try and combat consumer “ghosting.” But as states pass regulations that further limit the number of messages a debt collector can send to a consumer beyond Regulation F, there may be fewer opportunities to get consumers to take action and make a repayment. However, machine learning can create a personalized journey for each consumer within specified compliance guidelines, and keeps optimizing to find the best time, message, and channel to improve performance.  While there are set time guidelines that certain collection messages have to follow, many consumers have what are called “quiet windows”. When a business respects consumer quiet windows the “ghosting” rate drops. Even though quiet windows aren’t established collection compliance rules, there are benefits for respecting them. In fact, data from the 2025 ACA International Benchmarking report found that messages outside of consumer quiet windows have three times the engagement rate. TrueAccord Turns Consumer Ghosting Into Resolutions TrueAccord is a premier omnichannel debt collection agency that leverages patented AI to deliver better results with a process that puts consumers first. Ready to join the dozens of industry leaders who use TrueAccord to collect more? Talk to our team today to learn more.

In the first quarter of 2026, the cost of living remained the primary antagonist for American households. While grocery price growth showed signs of stabilizing, the relief was short-lived as a spike in energy costs driven by geopolitical instability and renewed inflation pressure reintroduced significant strain on monthly budgets. In debt collection, the first part of the year brings tax season, which provides cash refunds, some of which historically have been used to repay debts. However, despite anticipating the “largest tax refund season in U.S. history,” which on paper showed an average tax refund that was 11% higher than last year, consumers have been underwhelmed with how those bumps materially impacted their finances. Higher earners saw more of a refund boost, and some people who owed owed less, but for many, their refunds ended up being negated by increased energy and other essential costs. In our latest quarterly report, we have distilled major factors of the current economic landscape to offer recommendations intended to help borrowers, lenders, and collectors navigate these turbulent waters. Key Economic Indicators The economic data from Q1 2026 reveals a complex and increasingly fragile financial situation for many households. CPI rose 0.9% in March, pushing the annual rate to 3.3%. While indexes for shelter, airfares, household expenses, and education all rose in March, the biggest driver was energy prices, which surged 10.9% in a single month, primarily due to a 21.2% spike in gasoline. The labor market in Q1 showed continued expansion with 178,000 nonfarm payroll jobs added in March and a steady 4.3% unemployment rate. While hiring remains active, the market is selective, focusing on efficiency and AI literacy as AI-driven restructuring contributed to approximately 12% of layoffs. Key job gains occurred in healthcare, construction, and transportation, while large enterprises adopted more conservative hiring.  Based on inflation and the labor market, the FOMC held the benchmark interest rate steady at 3.50%–3.75% through March. Despite previous cuts, the Fed has entered a "wait-and-see" mode as it monitors inflation and global conflict, with minutes from the latest meeting even showing considerations for rate increases. According to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, credit card balances increased to $1.28 trillion at the end of 2025, and credit card accounts delinquent by 90 days or more reached 12.7%, a nearly 15-year high. Aggregate delinquency worsened in Q4 2025, with 4.8% of outstanding debt in some stage of delinquency.  Auto delinquency rates also continue to trend upward, forecast to reach 1.54% for 60+ days past due accounts by year-end. Foreclosure filings in January 2026 were up 32% compared to the previous year, after 11 straight months of increases. While delinquency rates for mortgages were near normal levels,  deterioration was seen in lower-income areas and in areas with declining home prices.  What’s Impacting Consumer Finances? Specific pressures are making it increasingly difficult for middle-to-lower-income Americans to manage their financial obligations. In addition to inflation and skyrocketing gas prices, electricity costs are being driven up by the massive power requirements of AI data centers. According to the U.S. Energy Information Administration, residential electricity prices rose by 11.5% in 2025 and are expected to increase by up to 40% by 2030.  The "K-shaped" economy continues to define the consumer financial landscape, with higher-income households seeing 5.6% wage growth in March over a year ago and sustaining their spending, while lower-income earners saw meager 1-2% increases, forcing them to navigate a reality of stagnant wages and rising essential costs.  US consumer spending remains resilient in early 2026, though growth is shifting toward services and experiences over goods. While high costs for housing and essentials squeeze budgets, consumers are selectively spending, shifting toward "cheap thrills" and necessary services like healthcare with a focus on value.  Many student loan borrowers are also struggling to make payments, with millions more facing monthly payment increases when the SAVE plan ends. According to a recent survey, about 42% of student loan borrowers said they have to decide between making student loan payments and covering their basic needs, and 20% reported they are in delinquency or default on their student loans. In March, 43 million Americans with student loans, about 9 million of whom are in default, were notified that the Treasury Department is taking over debt collection. What’s Impacting the Debt Collection Industry? The industry is operating in a state of high regulatory and technological uncertainty, while the future of the Consumer Financial Protection Bureau (CFPB) remains in flux. Following a court order that blocked previous attempts to shutter the agency, Acting Director Russell Vought requested $145 million from the Federal Reserve to keep the CFPB operational only through March 2026, and is expected to continue requesting funds. However, in April, the agency continued to take steps to reduce operations, ending the lease for the headquarters’ office and filing motions to reduce the workforce by half. While the CFPB pursues a minimal and deregulatory agenda under current leadership, state-level regulators and the Federal Trade Commission (FTC) are increasingly filling the void with their own enforcement priorities. The FTC recently published a detailed five-year roadmap laying out how it plans to police the economy through 2030, and in summary, enforcement will be broad, tech-focused and data-driven. The FTC is reaffirming its commitment to enforcing the nation’s antitrust and consumer protection laws, with a specific focus on online behavior. The agency’s priorities include fighting fraud and deception, targeting healthcare fraud, and holding large technology platforms accountable.  At a state level, enforcement and regulations focusing on fintech, fair lending, AI, debanking, anti-DEI and cryptocurrency are on the rise. In particular, these 10 states have been leading the charge in increased oversight. With continued rapid advancements in AI technology in financial services and trailing regulatory guidelines, it is more important than ever for businesses leveraging new technologies to assess and mitigate risk through informed and strategic governance policies. How Are Consumers Feeling? Consumer sentiment readings show declining confidence and increased anxiety, reflecting the economic indicators. The University of Michigan Consumer Sentiment Index sank about 11% in the beginning of April, continuing a decline that began with the Iran conflict, sinking about 9% from a year ago. Setbacks in sentiment showed up across age, income, and political party demographics and in every component of the index.  The Conference Board Consumer Confidence Index rose slightly for present situations, but the Expectations Index, which tracks outlooks for income and labor, declined by 1.7 points. Respondents are increasingly pessimistic about their future household financial situations, with consumers' average and median 12-month inflation expectations surging in March. The percentage of consumers stating that interest rates over the next 12 months will be higher leapt from 34.9% to 42.4%, with a growing cohort believing a recession is likely within the next 12 months. The Federal Reserve Bank of New York’s March 2026 Survey of Consumer Expectations also shows that households’ inflation expectations increased at the short- and medium-term horizons, with expectations of growth in gas prices ballooning. Respondents’ job finding expectations improved, while job loss and unemployment expectations worsened. Expectations for credit availability have also deteriorated, with more consumers expecting it will be harder to obtain credit in the year ahead.  What Does This Mean for Debt Collection? For businesses, navigating 2026 requires a strategy that balances operational efficiency with an acute awareness of the average consumer’s diminished purchasing power and feelings about their financial security. Hyper-Personalization is Mandatory: With the "K-shaped" divide, a one-size-fits-all collection strategy will inevitably fail. Using data-driven insights to distinguish between those who can pay but are prioritizing other costs, and those who truly cannot pay due to the energy and housing squeeze will be a strategic advantage. Embrace Omnichannel, Not Just AI: While AI can help scale, consumers are increasingly wary of trusting new technology. Ensure your AI tools (like LLMs and chatbots) are backed by robust data and compliance protections and offer a clear path to human support when a situation becomes complex. Anticipate and Prepare for Compliance: With the CFPB’s funding and mission in constant flux, the regulatory center of gravity has shifted to the states. Collections strategies, especially those leveraging AI, must be agile enough to comply with a quickly developing regulatory landscape. Make sure your approach is grounded, compliant, and built to last—we’re kicking off a webinar series with our legal team, “AI Governance, Simplified.” to help. Register here. Sources: NPR - Tax Season U.S. Bureau of Labor Statistics - March Inflation U.S. Bureau of Labor Statistics - March Jobs FOMC - March Meeting Minutes Federal Reserve Bank of New York - Quarterly Report on Household Debt and Credit Realtor.com - Foreclosure Filings Q1 2026 Environmental and Energy Study Institute - Energy Prices Yahoo Finance - Wage Growth BadCredit.org - Student Loans Reuters - CFPB HQ Lease Termination Reuters - CFPB Funding Banking Dive - CFPB Workforce Cuts PYMNTS.com - FTC 5-Year Roadmap Skadden Insights - Consumer Enforcement, States to Watch University of Michigan - Consumer Sentiment Index The Conference Board - Consumer Confidence March 2026 Federal Reserve Bank of New York - March 2026 Survey of Consumer Expectations

TrueAccord is no stranger to litigating cases that establish good case law for digital collections, and the recent decision in Robertson v. TrueAccord Corp. is no exception to this. The industry has faced confusion as to whether or not a text message is as intrusive as a phone call to consumers, legally speaking. It’s one of many gray areas the debt collection industry faces. However, to date, few participants have sought to establish legal clarity through court action. Closing some gaps to this key gray area, the Robertson decision contains several pivotal rules for digital collections, which added TCPA clarity as the cherry on top. The court found that text messages are not as intrusive as phone calls, settled the debate on whether the mailbox rule applies to debt collection emails (hint: it does!), and found that the content of TrueAccord’s text messages necessitates a finding that an automatic telephone dialing system (ATDS) was not used. Ready for more details? Let’s jump in. Text Messages are Not as Intrusive as Phone Calls In Branham v. TrueAccord, TrueAccord spearheaded case law finding that email is not as intrusive as a phone call, and now we have a companion case that finds the same is true about text messages. In this case, the plaintiff alleges that TrueAccord’s text messages constituted harassment under the FDCPA, and the court squarely disagreed. Here’s the key reasons why this decision was reached:  First, the court noted that the volume of text messages sent did not rise to the level of harassment. TrueAccord sent 11 text messages in the span of 2 months. Second, the court found that the Opt-Out option in each text message (“Reply STOP to opt out”) was also a strong factor against harassment, as stopping the messages was in the plaintiff’s control. Third, the court equated text messages to emails and found both styles of digital communications are not as intrusive as phone calls. The Court said: “This conduct does not approach a level that would allow the Court to infer an intent to harass, especially because text messages, like letters, are easily ignored and far less intrusive than phone calls.” Mailbox Rule Applies to Email The Robertson court confirms again that the mailbox rule applies to email.  The mailbox rule is a legal doctrine that states if someone puts a piece of mail into a mailbox, then there is a rebuttable presumption that the piece of mail was delivered to the recipient. This presumption can be rebutted by the recipient by presenting credible evidence that shows otherwise. As recognized in the Robertson decision, courts have been applying the mailbox rule to email since 2013, including the Fifth Circuit in 2021. If a debt collector can prove that it sent an email, then there is a rebuttable presumption that it was received by the consumer. In the instant case, the plaintiff could not rebut the presumption. The Plaintiff alleged that TrueAccord sent the above-referenced text messages without first providing a validation notice as required by the FDCPA. As evidence, plaintiff provided screenshots of an inbox search plaintiff conducted after the litigation began showing no emails received from TrueAccord.  TrueAccord, on the other hand, provided business records evidencing that it did, prior to sending any text messages to plaintiff, send an email to the email address of the plaintiff containing all validation notice requirements. TrueAccord received no indication of any email bounce backs or other undeliverability notices. The Court said: “Even though the statute requires only that the notice be sent, the mailbox rule presumes email [sic] was received…Because Plaintiff has presented evidence only of email searches performed some indeterminate time after this litigation began, she has not rebutted the presumption created by the mailbox rule.” The Content of a Text Message Can Indicate When an ATDS is Not Used The industry has seen endless case law over the years narrowing down what, exactly, is and what is not an automatic telephone dialing system (ATDS) under the TCPA. While it’s been generally settled since the U.S. Supreme Court case Facebook v. Duguid that the systems industry members do not qualify as an ATDS, the Robertson decision adds another decision supporting this. In this decision, the court found that the content of the text messages themselves held the key to determining whether an ATDS was used or not. The fact that TrueAccord’s text messages included certain characteristics that would only be applicable to the plaintiff’s specific account, e.g., the debt amount, necessarily means that the system used was not randomly generating phone numbers. It’s another example of how personalization helps create a better ecosystem for all parties involved in the industry. The Court said: “The facts alleged by Plaintiff only plausibly support the inference Defendant did not use an ATDS… Crucially though, Plaintiff alleges the messages contained personalized information (specific debt amounts),making it implausible that Defendant sent them to her using a device that randomly generates the phone numbers to be contacted.” Get More Insight Into Debt Collection Compliance with TrueAccord This case is a great example of the expertise TrueAccord’s legal team puts into practice. We’re committed to following and moving case law forward that furthers our mission of bringing a consumer-centric approach to debt collection. Our digital collections process is controlled by code and sets the standard for compliance. Do you want a firsthand look at how TrueAccord could bring personalization at scale for your accounts? Our expert team is ready to help.

Imagine if there were a streaming service that only had one show to watch? Some customers may be happy, but it wouldn’t appeal to most due to not addressing consumer preferences. While debt collection strategies and streaming apps don’t share many similarities, there is an important connection - personalization often delivers better results.  If you’re wondering how to improve recovery rates, personalizing collection communications by honoring preferences is a good place to start. In this blog post, we’re going to highlight how to take a more consumer-centric approach to your debt collection strategies. Break Away from One-Size-Fits-All Traditional debt collection strategies tend to exclusively use outbound calling and/or physical mail to reach out to consumers. There are two core issues with this approach. First, consumers often prefer to be contacted through digital channels. Second, the cost of call-to-collect and direct mail strategies continues to rise. So if your strategies do not include digital, then your tactics are more expensive and have a lower likelihood of recovery.  When a business invests in a one-size-fits-all approach, it’s leaving repayments on the table. By having multiple channels in your collection strategies, you are in a better position to connect with consumers. According to McKinsey data, initiating contact through a consumer’s preferred channel can lead to a 10% increase in payments. Remove Spam Concerns Consumers are increasingly weary about communications that are not aligned with their expectations, which may give them a reason not to respond. For example, if a consumer prefers text messages, calling them is far less likely to work. By contrast, a text message that outlines their financial obligation that directly links to a self-service portal is likely to improve the recovery rate in this instance.  Personalization in debt collection is all about meeting consumers where they are. Debt collection strategies that favor “integration” over "interruption" tend to have higher performance. By aligning your debt collection communications with a consumer’s established behavior, you’re embracing a higher level of empathy through convenience. The process of honoring consumer preferences helps show that your business values their time and preferences.  Improve Customer Relationships It’s common for consumers to only owe a debt temporarily, however many businesses like banks and lenders want to retain customers. A debt collection strategy that doesn’t honor consumer preferences will likely feel impersonal, which runs the risk of deteriorating a customer relationship. A personalized approach that reaches out through the right channel, at the right time and with the right message helps preserve the relationship a consumer has with your brand.  In some cases, improving the consumer experience leads to recovery rates following suit. Every consumer has a preferred communication channel and experience they’re looking for. For example, many consumers prefer to make repayments without ever interacting with a human. This is why roughly 98% of delinquent consumers serviced by TrueAccord resolve their debt on their own through our self-service portal. Tailor Communications At Scale with Machine Learning How can a business uncover the preferred channel, the best time and content for each consumer? The answer is machine learning. Machine learning algorithms can analyze past and current consumer behavior to personalize the collection experience at the account level across any portfolio of accounts. TrueAccord has a patented machine learning algorithm called Heartbeat that has been used to upgrade debt collection strategies for years. Heartbeat works around the clock to be there whenever a consumer is ready to take the next step. Unlike other AI tools, Heartbeat reaches out to every account, and never stops working to find the best communication, channel, and message time for each consumer.  Heartbeat is trained on millions of consumer engagement data points to craft a communication strategy for each account. If that strategy doesn’t work, it learns and adjusts and keeps trying until a resolution is reached. Unlike traditional collection strategies, this approach takes into account the personal preferences of every consumer it engages with, and results speak for themselves. Within the first nine months of using a personalized debt collection strategy with TrueAccord, a Fintech client was able to collect $500,000 with 95% of those consumers using self-service options. *If you're interested in seeing how a SaaS solution could help your internal team personalize digital debt collection communications at scale, explore our sister company Retain. Deliver Personalization at Scale with TrueAccord TrueAccord takes a consumer-centric approach to debt collection by leveraging machine learning to personalize the experience for every account. If your business wants to achieve better recovery results while prioritizing a consumer-friendly experience, TrueAccord can help. Connect with our team today to learn how more personalization could be woven into your collection strategy.

There are quite a few sitcom episodes where one of the main characters is competing against technology. Whether it’s selling more paper than a website, or automating IT support, the human element in these shows always prevails. In the debt recovery industry, machine learning algorithms have stepped up to challenge humans for the title of best collector.  At scale, algorithms have many innate advantages for debt collection over human agents. Let’s take a look at how this competition would shake out, the argument for why machine learning algorithms are the best debt collectors and how it stacks up to other technology like chatbots.  The Benefits of Machine Learning and Algorithms for Debt Collections One of the core reasons why machine learning algorithms can be considered “the best collector” is because they can process large datasets faster and more efficiently than humans. Algorithms can analyze data of past consumer behavior, learn the nuances of individual accounts, and adjust strategies to improve the collection approach over time. By comparison, it would take a team of humans countless hours to reach the same level of analysis and insight, let alone making the required adjustments at scale. When data is leveraged to offer personalization at scale, every interaction with a consumer is optimized for engagement. For example, an algorithm could send an email to a consumer first. If that person doesn’t respond, the technology could try a new content template, subject line or even try sending a text instead. The speed at which algorithms can process data allows debt collection strategies to evolve to meet consumer preferences with greater accuracy. *Curious to see how your internal collections strategy could offer personalization at scale for digital channels? Take a look at our sister company Retain and learn more about white-label debt collection software. Deployment Speed and Compliance Risk Differences Human collectors take significant time and resources to train. They often have to go through weeks of onboarding and need to shadow more experienced collectors before reaching out to consumers. An algorithm can often be integrated into existing collection strategies faster to make a lasting meaningful impact. Algorithms solely focus on analyzing data and behavior to optimize collections. It’s technology that has no emotional biases or “off” days that happen to every human being.  Machine learning algorithms help enable code-based compliance. It helps ensure that all regulatory requirements for debt collection are being met with the ability to run real-time updates for any new rules and case law. This technology eliminates the “human error” factor in debt collection compliance, which reduces risk for businesses across their recovery strategy.  When a “Human Touch” is Needed in Debt Collection While machine learning algorithms can automate digital communications and optimize engagement, there are situations where human collectors have an advantage. Consumers with larger debt balances are more likely to prefer a human collector who can work through a more complicated situation with empathy. Even though consumer preferences are shifting more towards digital communications and self-service portals, some consumers will only talk to other people. This fact is part of the reason why it’s important to have an omnichannel collections strategy to help ensure all types of consumer preferences can be honored. Algorithms vs. Chatbots for Debt Collection In the debt collection industry, there have been more companies utilizing chatbots in their recovery strategy. The most common application is when a consumer visits the website, an option appears that lets that person talk with a chatbot. However, this form of self-service has some drawbacks that make it less valuable than machine learning algorithms that operate at the heart of the strategy.  If a chatbot is powered by AI, there’s a risk of hallucinations occurring. When discussing debts, inaccurate information from an AI chatbot could lead to an increase in disputes and expose the business to legal risks. The other option is decision tree chatbots that could have trouble resolving more nuanced questions from consumers.  The effectiveness of chatbots for debt collection has one big issue: in most cases, the consumer has to visit a company’s website to engage with it. Once a consumer goes to a collector’s website, they’ve already taken a big step towards engagement. Debt collection is often about finding the most effective ways to get a consumer's attention and prompt action. Chatbots still require the outreach to drive consumers to a website. AI Voice is Poised to Become a New Challenger AI voice technology has made huge strides recently. AI voices have the ability to sound human with different tones, speech inflections and more. Even when the use of an AI voice is disclosed, the realism it can now achieve helps consumers get past some hesitancy of speaking to it. In the future, it’s likely that we’ll see more voice AI integrated into omnichannel collection strategies. While complex cases would be handled by human agents, voice AI could handle the more routine calls. This alone could significantly improve the effectiveness and efficiency of collection strategies. Get High-Performance Recovery Powered by Machine Learning TrueAccord has a patented machine learning engine called “Heartbeat” that creates a personalized journey for every consumer. If you’re ready to learn more about why many industry experts believe that an algorithm is the best collector, we’re here to help. Contact us today to explore TrueAccord’s full-lifecycle recovery solutions.

TrueAccord is expanding its industry-leading recovery business to include a dedicated first-party collection service, designed to act as a seamless extension of clients’ brands. With this addition in the early-stage delinquency space, TrueAccord now offers a complete full-lifecycle recovery solution that bridges the gap between initial re-engagement and late-stage recoveries. This first-party service, powered by TrueAccord’s subsidiary Sentry Credit, Inc., focuses on consumer engagement and retention rather than just liquidation. It utilizes a "HumAIn" approach to collections, supporting seasoned agents with advanced AI to deliver a brand-aware experience that feels like a natural extension of an internal team.  "By expanding our services to address the full recovery lifecycle, we are bridging the gap between early-stage re-engagement and late-stage resolution,” said TrueAccord CEO Mark Ravanesi. “Our approach combines the precision of our machine learning engine with the empathy and experience of our professional collection team. Whether a consumer is just falling past due or is deep in the recovery funnel, they receive a convenient, digital-first experience that prioritizes retention and financial health while delivering the high-performance results our clients expect."  With a focus on positive consumer interactions and industry-leading recovery, this first-party expansion offers clients a seamless way to deliver their customers a consistent, empathetic experience from the very first delinquency communication. By leveraging the patented AI technology, TrueAccord eliminates guesswork and allows collections experts to focus on helping consumers find a sustainable way forward. The service is built to be both flexible and highly scalable, working directly from clients’ AR systems or its own CRM. For more information about TrueAccord’s services, visit www.trueaccord.com or contact sales@trueaccord.com. 

There’s no question that the debt collection industry is in a state of evolution, but one thing that persists, especially with change, is the emergence of myths. As more businesses are turning to a digital collection strategy, misconceptions are naturally going to arise with a new approach that focuses on email, text messages (such as SMS and MMS), and self-service portals.  Let’s take a look at three of the most common digital debt collection myths, the truth behind them and how a digital-first approach to collections helps businesses.  Myth 1: Self-Service Reduces Recovery Rates in Debt Collection Experts agree that it’s likely this myth was born out of the dominance call-and-collect had over the industry for decades. In fact, many businesses still hold the opinion that direct contact from a staff member is the best way to improve recovery rates. The truth is that self-service portals not only improve recovery rates, but they are also preferred by the majority of consumers.  A 2023 TransUnion data report showed that 60% of consumers prefer self-service options to resolve their debt. Self-service portals give consumers the added convenience of being able to view and manage their debt on their own time. Another study conducted by McKinsey found an increase of 15% for cured accounts after self-service options were implemented.  The beauty of self-service is that it eliminates the “shame factor” many consumers experience when talking to someone directly about their debt. This comes into play when consumers are making decisions on which bills to prioritize. Roughly 14% of bill-payers identified “the ease of making a payment” as a key factor in their decision-making process.  Myth 1 Status: Busted - Self-service options DO NOT reduce recovery rates. Your business could actually improve repayment performance by embracing this digital-first strategy.  Myth 2: Digital Debt Collection Strategies Are Too Expensive The debt collection industry is leveraging technology more than ever. When businesses see adjectives like “AI-powered”, “automation” or “digital communications”, there’s an assumption that these products and services are expensive. Even when a business is interested in taking a digital-first approach, the process of setting up email, text messages and other channels can seem costly to build from the ground up.  While there’s always a cost to implementing digital debt collection strategies, the more traditional tactics are increasing in cost as well. For example, the cost of sending physical mail continues to increase, and businesses that rely heavily on call-and-collect often need to hire more staff to scale up collection efforts. A McKinsey report found that embracing a digital-first approach can lower the cost of collections by upwards of 15%.  There are also collections platforms powered by machine learning like TrueAccord that use consumer engagement data to predict the next best step, making outreach more efficient. This approach paired with meeting consumers in the digital channels they prefer can improve recovery rates and help offset the cost of collections.  Myth 2 Status: Busted - A digital-first approach to collections has the potential to help businesses recover more. Also, the increased cost to collect and agency fees often associated with traditional strategies aren’t present when the right digital-first approach is used.  *There is white-label debt collection software that's designed to help your internal collections strategy spend less to collect more through personalization at scale. Explore our sister company Retain to learn more today. Myth 3: Consumers Find Collections Through Digital Channels Untrustworthy A CNET survey found that a staggering 96% of U.S.consumers receive at least one scam message a week. There’s been a stark rise in financial scams, and many of these messages come through digital channels. This has led more businesses to think that consumers will likely find any collections outreach through digital channels untrustworthy. While this rationale makes sense, the truth is that many consumers prefer digital communications.  Digital communication channels are key to omnichannel strategies that put consumers first. An omnichannel collections strategy means using multiple, often complementary channels to contact consumers in their preferred way. One of the key channels is email, which has gone from a “nice to have” for debt collection outreach to a necessity. In fact, surveys show that roughly 59.5% of consumers prefer to be contacted through email first. And when a business reaches out to a consumer through their preferred channel, it can lead to a more than 10% increase in payments.  While more consumers are turned off to direct phone calls, businesses can still get attention on their device. Around 65% of consumers want their billing, payment and account information sent to them through text. A major reason consumers are gravitating more towards digital channels is because it empowers them to address the debt at their own pace  Myth 3 Status: Busted - Even though financial scams have made consumers more careful with digital communications, their preferences for those channels still hold strong. By honoring those preferences, debt collection strategies can reach higher performance while improving customer satisfaction.  See How a Digital-First Approach to Collections Could help Your Business Even though we covered three of the most common digital debt collection myths, there are plenty more to navigate. By knowing the full capabilities of digital channels, your business can improve its collections strategy. The good news is that you don’t have to figure this out alone.  TrueAccord is an industry leading debt collection agency that’s powered by patented machine learning to deliver a consumer friendly experience and improve collection results. Connect with our team today to unlock the potential of a digital-first approach.

The cost of living continues to weigh on American consumers. While eggs are no longer the focus of food price pains, other household staples like coffee, beef, and candy have seen double-digit price increases over the past year. Grocery prices rose at the fastest pace in 3 years in December, and when combined with rising costs of other essentials, it’s concerning but not entirely surprising that consumers have turned to crowdfunding to cover basic needs.  According to Bank of America economists, “The ‘K’ is here to stay”, referring to the duality seen between financial stability and spending of higher- and lower-income households. The top 5% of consumers drove the bulk of overall spending gains through late 2025, while lower-earners cut back on nonessential purchases amidst financial pressures. For those on the middle to lower end of the income spectrum, an unfavorable economic climate will put more strain on finances, leading to increased delinquency and the need for alternative sources of credit to make ends meet. With new and persisting economic challenges and no indication of reprieve in sight, the year ahead coming out of 2025 looks challenging for consumers, especially those on the middle- to lower-end of the income spectrum. We’ve distilled the factors of the economic landscape and crafted recommendations to help borrowers, lenders, and collectors prepare accordingly. Key Economic Indicators The economic data from Q4 shows the financial hurdles facing many households. While the economy as a whole continues to move forward and looks strong on paper, the benefits are not being shared equally, and the real picture is complex below the surface, creating significant headwinds for a large portion of the population. The job market has cooled significantly since earlier in the year, with employers adding only 50,000 jobs in December, and the unemployment rate settled at 4.4%. Long-term unemployment rose by nearly 400,000 people over the course of 2025. Inflation still remains a primary concern. December data showed a 0.3% monthly increase in the CPI, with the annual rate holding at 2.7%. Essential costs continue to climb, especially shelter (up 3.2% annually) and food (up 2.4% annually). In response to the cooling labor market, the Federal Open Market Committee lowered interest rates by 0.25% at its December meeting, landing at a target range of 3.50%–3.75%. This marked the third consecutive cut of the year, but expectations for multiple rate cuts, if any, in 2026 have dropped. Household balance sheets are showing significant stress, with delinquency expectations having deteriorated to their highest levels since the pandemic. Notably, auto delinquencies reached 3.88% late in the year, the highest level in 15 years, and that’s not counting closed, charged off accounts. Foreclosure filings in December 2025 were up by 26% over November, having surged by 57% compared to the previous year. Credit card delinquency gradually rose through the second half of 2025, both in terms of account volume and dollar balances, with 30-plus-day delinquency rates running higher than pre-pandemic levels. News early in 2026 about caps to interest rates has banks on edge, with potential implications for credit access at a time when consumers may need it most. What’s Impacting Consumer Finances? While higher earners are still faring well, lower-income Americans are struggling with wage stagnation that has not kept pace with the costs of living. Several specific factors are squeezing household budgets and making it harder for consumers to manage their financial obligations. Grocery prices rose by 0.7% in December, the largest monthly gain since the peak inflation period in August 2022, and were up 2.4% over the previous year. Restaurants similarly felt this squeeze, and passed increases on to consumers, with costs for dining out rising by a similar amount, marking the largest monthly gain in three years.  Utility prices are similarly starting to strain budgets, with electricity prices up almost 7% last year and natural gas reporting double-digit increases. This cost is expected to continue rising as data centers that provide the computing capacity and storage needed to power AI models add to power demands. Electricity costs near significant data center activity have increased as much as 267% per month, and as more data centers are constructed, more Americans should expect equivalent cost increases. The federal student loan landscape is undergoing a major shift with big implications. The SAVE plan was shut down in late 2025 following a legal settlement, forcing millions of borrowers to transition to alternative, often more expensive, repayment plans. A combined 12 million borrowers are in various stages of delinquency, default or forbearance with uncertain offramps, and the Education Department announced plans to resume wage garnishment in early 2026.  Health care costs are also going to be a big factor in budgets this year. Industry experts expect the premiums for employer-sponsored insurance have increased faster than overall inflation in 2025 and will likely do so again in 2026. Policies available on Affordable Care Act (ACA) exchanges are rising while tax subsidies for ACA coverage are expiring, which will raise rates for the 24 million people currently covered by ACA policies. For Medicaid recipients, new eligibility requirements under the One Big Beautiful Bill Act will also raise health care costs or reduce availability altogether.  What’s Impacting the Debt Collection Industry? The debt collection industry is adapting to a regulatory environment that is becoming more localized and a technological landscape that demands greater attention to security. The future of the CFPB is in flux as funding disputes continue. As of the time of this publication, Acting Director Russell Vought has asked the Federal Reserve for $145 million to fund the agency from January through March. He had previously moved to dissolve the CFPB, instructing staff to cease work and halting the agency's funding. In the meantime, the agency is aggressively pursuing a deregulatory agenda. As federal oversight wavers, states are stepping in. At least 14 states proposed legislation in 2025 to regulate financial products, with many laws taking effect late in 2025 or on January 1, 2026. For a quick summary of the key developments from 2025, take a look at this overview from TrueML’s legal team. The push toward AI in financial services continues, but the PwC 2026 Global Digital Trust Insights report highlights that 47% of leaders cite a lack of qualified personnel as a top challenge. An undisputed point is that implementing AI must be paired with robust data protection to maintain "digital trust", which is a concern for regulators, businesses, and consumers alike. How Are Consumers Feeling About Their Financial Outlook? Consumer sentiment reflects the deep anxieties revealed in the economic data. The Conference Board’s Consumer Confidence Index declined to 89.1 in December, with consumers’ assessment of their family financial situations turning negative for the first time in four years.  The University of Michigan Consumer Sentiment Index showed a slight rebound to 54.0 in early January, but this remains nearly 25% lower than the previous year. Furthermore, 47% of Americans believe they would not be able to find a good job in the current market. The Federal Reserve Bank of New York’s December 2025 Survey of Consumer Expectations agreed, with job finding expectations declining to a series low and job loss expectations also worsening. While spending and household income growth expectations remained mostly unchanged, delinquency expectations deteriorated to the highest level since the onset of the pandemic, and inflation expectations increased at the short-term outlook. What Does This Mean for Debt Collection? For businesses with financially stressed customers, navigating this challenging environment requires a strategy centered on empathy, awareness, and trust. Leveraging AI to do this at scale offers a path to success, but will require cautious, data-driven strategies and strengthened governance to navigate evolving risks and opportunities. Here are a few things to consider: Consumer expectations have evolved, your strategy must adapt. Empathy, convenience, and a customized experience will go a long way in building goodwill with consumers in debt. If you’re still relying on calling alone to drive repayments, your collection results will likely show the impact of being behind-the-times this year. AI is everywhere, but how you use it is key. Whether you’re using LLMs to write emails, chatbots to field consumer inquiries, or deeper, systemic AI, you’re going to need to keep an eye on evolving regulations, auditability, and data security concerns. For example, are you prepared for consumers using agentic AI for debt collection negotiations? And keep the other eye on the rapidly evolving regulatory landscape. What happens next with the CFPB will have big impacts on businesses and consumers. But either way, states and the FTC are stepping in with their own priorities for both financial services and AI regulation. Strategies will need to be informed and agile to keep up. Sources: Associated Press - Crowdfunding basic needs U.S. Bureau of Labor Statistics - December jobs U.S. Bureau of Labor Statistics - December inflation TheStreet.com - FOMC lowers rates Bankrate - Auto delinquencies HousingWire.com - Foreclosure rates Experian - 2026 State of Credit Cards American Bankers Association - Credit card rate cap Axios.com - Grocery prices Bloomberg - AI data centers & electricity NPR - SAVE plan ending Center for Economic and Policy Research - Health insurance premiums Pymnts.com - CFPB funding PwC - Global Digital Trust Insights Report The Conference Board - Consumer Confidence Index University of Michigan - Consumer Sentiment Index Federal Reserve Bank of New York - Survey of Consumer Expectations 

You might have heard of Rocket Money before. It’s a subscription finance app for consumers that helps with budgeting and tracking spending. One of its core features is negotiating with companies on a user’s behalf to lower the monthly bills of streaming platforms, cell service and more. In many cases, this process uses agentic AI for the negotiation process - a tactic that consumers could adopt for themselves.  Consumers are already using AI to help make financial decisions. LLM tools like ChatGPT will create a budget, and AI can be used to call stores to check stock and even make purchases. And with GenAI tools being widely available and incorporated into day-to-day tasks, consumers are even using AI to draft emails, scripts and texts to use in debt collection negotiation.  The industry will see more consumers using the technology more heavily on their end as well.  In this blog we’re going to explore the emerging frontier of consumers using AI for debt settlement.     Consumers Could Use Agentic AI to Call Debt Collectors in the Near Future As AI becomes more widely accepted and used, consumers will likely start using AI agents to interact with debt collectors to try and resolve a debt. If consumers start using agentic AI to negotiate debts, there’s logistical and legal challenges that will arise.   For example, if the AI agent does not identify itself as an AI (which is NOT considered to be current best practice for businesses), questions will arise around who the collector is speaking to and what authority they have. Even if these AI agents have identifying information for the consumer, such as SSN, phone number and DOB, debt collectors will need to find ways to ensure that the AI is actually acting for the consumer and that it is not a bad actor.  If a debt collector gets a call like this, it may be a scam. Industry experts say that if AI agents for consumers are regularly used, there has to be a dedicated verification step. This could mean the consumer getting on the phone to confirm their identity, or implementing some type of two-step verification system. Currently, the idea of an AI agent claiming to represent a consumer raises too many core issues for collectors.  How Should Debt Collectors Treat Consumer AI Agents? There’s a debate currently going on within the industry on how consumer AI agents should be treated if the trend develops. One view is that the AI should be seen as an extension of the consumer, just like a business’s use of AI is considered an extension of the business. Another is that the AI agent could be considered a third party, meaning the debt collector might not be allowed to share details of the debt.  As the use of consumer AI agents grows, debt collectors will need to work out internal processes for how to manage these calls. Eric Nevels, Sr. Director of Operations Support at TrueAccord, says that until a legal precedent is set, businesses will need to create policies on whether to treat undeclared AI agents as the consumer or as a third party.  The Most Popular Consumer AI Debt Collection Negotiation Tactics Used Today AI agents are still a ways out from mass adoption by consumers. Most consumers using AI to help with debt collection negotiations do so by asking LLMs like ChatGPT, Claude and Gemini for guidance on financial matters or to generate scripts to use when calling collectors to negotiate a debt. Many people don’t feel comfortable negotiating, and LLMs give consumers confidence by arming them with information and making them feel like they have an expert on their side. The same approach is being used with collection emails and texts as well. Consumers can easily plug in digital debt collection messages into AI platforms to help decide the best way to respond. This makes the messaging of a debt collector’s emails and texts more important. For example, an email that uses aggressive language is more likely to cause an LLM to advise a consumer to dispute a debt. On the other hand, an empathetic message offering options could prompt AI platforms to encourage the consumer to work with that collector.     Businesses need to be aware that consumers now have the ability to analyze large amounts of their own financial data to help inform what payments should be made to collectors. LLMs have already reached mass adoption by consumers and are much easier to use than a more complex agentic AI. Consumers can now plug in all their debts into AI platforms to get a recommendation on what to pay down first. It’s one of the reasons why businesses need to gain a deeper understanding of AI use in debt collection.  Ready to Boost Your Collection Efforts with Industry Leading AI? With more consumers using AI for debt settlement and negotiation, your business needs to provide a digital-friendly experience. TrueAccord uses Heartbeat, a patented machine learning engine that uses dynamic feedback combined with millions of customer interactions to figure out the best way to engage each consumer for better payment results.  It’s a personalized, self-service experience that honors consumer preferences while driving more engagement. Contact us today to learn more about how TrueAccord uses AI to collect more from happier consumers. 

Think about the last time an alert pinged on your smartphone for a new voicemail. There’s a small spike of curiosity as you look to see who left the message and what they had to say. The rise of financial scams have made people more hesitant to answer phone calls, leaning on voicemail as a makeshift call screening tool. The result is that consumers these days may be more likely to engage with a voicemail from a business than a direct call.  Since the notification of a new voicemail grabs the attention of consumers, more debt collectors are using ringless voicemail drops in their strategies. Like many other regulations in the industry, voicemail compliance rules have to be followed by businesses looking to leverage this channel. Let’s take a look at the compliance considerations and best practices for debt collection voicemail drops.  A Debt Collection Voicemail May Fall Under “Limited-Content Message” Rules Under Regulation F, the Consumer Financial Protection Bureau’s (CFPB) debt collection rule, a voicemail drop can be classified as a “limited-content message” if certain requirements are met. Limited-content messages are not considered a communication by Regulation F’s interpretation of the FDCPA, and avoid the risk of third party disclosures due to the limited amount of information present in the message. To meet these requirements, the voicemail must include the following: A business name that doesn’t indicate the business is a debt collector.  Ask the consumer to reply to the voicemail message.  The name of one or more natural person(s) whom the consumer can contact to reply. A working telephone number the consumer can use to contact the business.  Outside of these four essential elements, limited-content voicemails can also include a few pieces of optional information. These include a greeting (like “hello”), the date and time of when the voicemail was sent, suggested dates and times for the consumer to reply and informing the consumer they can speak to business representatives if they reply. To be considered a limited-content message, the voicemail cannot include any other information.  Unlike digital channels of communication (like email and text messaging), voicemail drops fall under the Regulation F contact cap rules, which prohibit a debt collector from calling a consumer more than seven times in a rolling seven day period prior to a right party contact, or once per a rolling seven day period after a right party contact is made. Since Regulation F treats voicemail drops as calls, they also have to be sent in a time that is convenient for the consumer, which the FDCPA presumes as a timing window between 8am and 9pm at the consumer’s location. Some states have stricter inconvenient time rules, so it’s important to have tailored compliance accounted for in your strategy.  Debt Collection Voicemail Compliance & TCPA Consent Rules Another important set of debt collection voicemail compliance requirements can be found under the Telephone Consumer Protection Act (TCPA). The TCPA requires prior written consent from a consumer before a debt collector uses prerecorded messages and artificial voices. This applies to ringless voicemails because they are typically pre-recorded (and potentially use artificial voice).  Debt Collection Voicemail Drop Best Practices to Help Your Business Stay Compliant While sending compliant debt collection voicemails might seem challenging, there are best practices that can help make managing them more streamlined:  Double Check State Laws: State laws around debt collection are subject to change at a faster pace compared to the federal level. It’s important to regularly check voicemail drop compliance rules for every state your business operates in. The rules and consequences for non-compliance are often stricter at the state level.  Keep Detailed Records: When your business is sending voicemail drops for debt collection, it’s important to keep detailed records. This includes delivery metrics, opt out requests and the frequency sent to consumers.  To use ringless voicemails or traditional voicemails in debt collection is a tactical business decision that every business needs to weigh based on their own collections strategy. If your business wants to follow best practices, the right partner can help. TrueAccord is an industry-leading recovery and collections platform that has proven experience in sending compliant digital debt collection messages.  *If you're looking to use digital channels for your internal collections strategy, our sister company can help. Learn more about Retain white-label debt collection software here. TrueAccord Helps You Collect More from Happier People TrueAccord is a debt collection platform that can handle all of your delinquency needs from one day past due to charge-off. Our patented machine-learning engine, Heartbeat, optimizes and improves digital debt collection efforts over time. Learn more about how digital communications can improve your collection efforts by contacting our team!  *The blog post above is meant for informational purposes only, and does not constitute legal advice.