Many businesses are putting more resources into being empathetic with customers. Not only is it a cornerstone consumer trend, empathy can be a strong competitive advantage when done right. The debt collection industry is no exception, authentic empathy has shown to improve recovery rates while retaining brand loyalty.  As empathy has become more essential, there have been more instances of it being manufactured or faked. In this blog post, we’re going to break down the cost of faking empathy and what authentic understanding looks like in debt collection. What Does Fake Empathy Look Like? To fully understand the concept of faking empathy, let’s walk through a relatable example. Have you ever ordered a coffee and gotten a personalized handwritten note from the barista on the cup? It makes many people feel special, and it was a key element of Starbucks’ empathy-driven experience in its early days.  Fast-forward to 2025, and the coffee giant made it a policy to write a note for every customer. The only way to do this fast enough was to write more generic messages on all the cups in advance. The magic of those personalized notes disappeared because the personalization and authenticity were gone. There was customer backlash on social media, with many people commenting how the chain lost some of its authentic charm. It’s a lesson that shows when empathy is forced or faked, it often doesn’t have the same impact.  The same principle holds true when applied to debt collection. If the extent of the empathy being shown feels forced, many consumers can see through it. And one of the most common places where fake empathy occurs is with AI chatbots. The Cost of Fake Empathy and AI Chatbots AI chatbots continue to grow in popularity to address consumer issues in the debt collection industry. The problem is that some AI chatbots practice what’s called “scripted empathy”. It’s when a chatbot uses a more generic statement like “I understand that’s difficult” as a blanket response for consumer issues.  A University of South Florida study found that these fake empathy responses from AI chatbots actually worsen consumer reactions. In fact, the same study found that 73% of consumers will disengage with a brand that fakes empathy. For debt collectors, that means fewer recoveries and potentially losing consumers for good. This research highlights that consumer expectations for empathy being practiced by businesses is high, and isn’t something that can be forced.  The core theme isn’t that AI chatbots can’t be effective, but that empathy that makes a positive impact takes investing time to gain a better understanding of consumers. A good place to start is working towards understanding each consumer’s unique preferences. And there are other ways AI technology can be used to accomplish that goal in debt collection outside of chatbots. How TrueAccord Uses AI in Debt Collection to Offer Empathy TrueAccord puts empathy in the center of all debt collection efforts, some of which is built invisibly into the process instead of explicitly empathetic in content. With a patented machine learning engine, TrueAccord gains a better understanding of each individual consumer’s unique preferences. By using millions of data points as a reference, the technology finds the right message, channel and time for contacting each consumer. Empathy isn’t just saying the right words, it can be meeting consumers where they are most comfortable, too.  Another way TrueAccord provides an empathetic, consumer-first experience is by offering a self-service portal. Roughly 98% of TrueAccord customers resolve their debt through self-service, bypassing financial discussions that make many people stressed or nervous. More consumers than ever before prefer self-service options to resolve financial obligations and want to be contacted through digital channels. By better understanding and catering to the preferences of each consumer, TrueAccord creates a consumer-centric experience that helps people find the best low friction way forward. The Future of Empathy in Debt Collection Some businesses make the mistake of putting all their empathy efforts into tools that don’t offer personalized experiences. Empathy can be infused into more aspects of the debt collection industry other than front-facing tools like chatbots. It’s likely that as empathy becomes even more important to consumers, businesses will need to offer more personalization. For the debt collection industry, it will likely mean offering more convenient ways to view important account information and streamlining the repayment process. TrueAccord Brings Authentic Empathy to Debt Collection TrueAccord is a premier collections agency that offers high recovery performance with a consumer-centric approach. Our first-party and third-party collection services help businesses put consumers first, so that every repayment makes a difference. Contact our team today to learn more about how we strike the right balance between high-performance and empathy.

As 2026 approached its midpoint, the macroeconomic narrative shifted from temporary energy-driven friction to a broader affordability crisis expanding across nearly all income brackets. Households are increasingly tapping into savings or leaning on credit instruments just to bridge the widening gap between stagnant paychecks and skyrocketing costs for core essentials like groceries, utilities, and healthcare. With more than a quarter of working-age adults who used credit cards to buy groceries were unable to pay their balance in full or lapsed on their minimum payment, repayment capacity for many continues to erode. The latest Equifax Market Pulse Index, which combines credit behavior, debt loads, income, assets, and spending capacity into a single score from 1 to 100, dropped 1% from the prior quarter and now sits below its average. Notably, the middle-class cohort continues to shrink as consumers shift up or down in capacity, the direction of which seems to be tied to assets. Even Amazon founder Jeff Bezos commented on the starkly K-shaped economy, “You have a bunch of people in this country who are doing really well, but you also have a bunch of people in this country who are struggling, struggling to pay rent, groceries." For the debt collection industry, understanding consumer financial capacity is critical; with pandemic-era safety nets fully dissolving and credit card delinquencies reaching heights not seen in over a decade, traditional collection strategies are no longer viable. TrueAccord’s latest quarterly analysis evaluates these compounding shifts to guide lenders and collectors through an economic landscape defined by a concerning affordability crisis. Key Economic Indicators The economic data compiled throughout the second quarter of 2026 underscores a highly fragile financial situation for the average American household. In June 2026, headline inflation eased to 3.5% annually, after accelerating to 4.2% in May. This drop was heavily influenced by reduced energy costs, which fell 5.7% in June alone after a pause in geopolitical conflict eased concerns, but this measure bears watching as the situation remains tumultuous. Core inflation—excluding volatile food and energy sectors—hit a nearly three-year high at 2.9% year-over-year in May and held there in June, signaling high prices sticking more broadly across other categories. Food prices continued rising through June, both in groceries and food away from home.  After adding 172,000 nonfarm payroll jobs in May, private payrolls only grew by 98,000 in June while the unemployment rate held steady at 4.3%. Annual pay gains for those staying in their jobs held steady at 4.4% while edging higher to 6.6% for job switchers. Keeping a watchful eye on resurgent inflation and geopolitical instability, the Federal Open Market Committee (FOMC) voted 12-0 at its June 17 meeting to maintain the benchmark interest rate target range at 3.50%–3.75% for the fourth consecutive meeting. Fed officials entered a prolonged wait-and-see mode, though several participants raised their year-end rate projections to between 3.6% and 4.1%. According to the Federal Reserve Bank of New York, total U.S. household debt ticked to a new record high. Americans amassed a staggering $1.25 trillion in credit card debt during the first quarter of 2026—marking a $70 billion increase compared to the same period last year. And cardholder balances that were at least 90 days overdue spiked past 13%, reaching their highest level since 2011. What’s Impacting Consumer Finances? Specific structural pressures are blending together, making it intensely difficult for families to stay on top of their day-to-day financial obligations. Stagnant wages and persistent inflation have trapped millions of consumers on a financial hamster wheel. Because food, housing, and healthcare have become significantly more expensive, families are forced to rely heavily on credit cards for everyday survival, leaving them with minimal residual cash flow to pay down outstanding balances. Affordable living faces a twin squeeze from essential services. Due to the expiration of pandemic-era federal subsidies, millions of Americans are being exposed to the true, unsubsidized cost of health insurance premiums, which rose an average of 114% to $1,905 annually. As a result, a growing number of individuals are dropping out of ACA marketplaces entirely due to non-payment, particularly in states like Kentucky and Idaho. Simultaneously, surging summer utility costs are projected to break records as intense seasonal heat drives up residential electricity demand for air conditioning. The student financial safety net is officially unraveling as the federal SAVE plan ended on July 1, 2026. This transition leaves millions of borrowers facing sudden monthly payment increases, forcing roughly 42% to decide between covering basic needs or servicing student debt. Defaults are already surging across the nation as the Treasury Department aggressively takes over collections on approximately 9 million defaulted accounts. You can also read the economic tea leaves in the discount retail sector. Dollar Tree achieved a 3.5% increase in comparable store sales last quarter, fueled by a 4.5% rise in average transaction values. This growth stems from its strategy to introduce higher price points that attract wealthier, deal-seeking shoppers trading down to discount brands. Meanwhile, major retailers like Walmart report that lower-income consumers are facing extreme budget exhaustion and severe financial strain. What’s Impacting the Debt Collection Industry? In Q2, federal and state regulators reshaped the AI governance landscape for financial services and debt collection. In May, the Consumer Financial Protection Bureau (CFPB) issued Circular 2026-03, delivering a warning to institutions utilizing complex algorithms and machine-learning models that a proprietary or "uninterpretable" black-box AI model does not excuse an organization from its statutory obligation under the Equal Credit Opportunity Act (ECOA) and Regulation B to provide clear, mathematically sound, and specific reasons for an adverse consumer action. This coincided with a final rule from the CFPB amending Regulation B that formally eliminated the broad, unintended bias "effects test" in favor of strict, text-based enforcement and higher evidentiary standards.  The CFPB also released their 2026–2030 Strategic Plan which outlines three primary goals aligned with the administration's economic and management agendas. First, it aims to address pressing threats to consumers by guaranteeing fair banking, combating politicized debanking, and focusing supervision and enforcement resources on correcting tangible fraud and actual consumer harm. Second, the plan seeks to reduce unwarranted regulatory burdens through a robust deregulatory agenda that identifies, streamlines, and eliminates outdated or overreaching regulations that drive up costs for consumers. The third goal is to strengthen governance and culture through eliminating waste, right-sizing the agency's footprint, leveraging modern technology, and fostering a strictly merit-based federal workforce. On the state level, early mover Colorado pivoted on AI governance and repealed its landmark 2024 AI Act, replacing it with the more business-focused Colorado Automated Decision-Making Technology (ADMT) Act. This new framework removes general financial sector exemptions, mandating rigorous pre-use and post-adverse outcome disclosures alongside a guarantee for "meaningful human review" when automated technologies materially influence consequential consumer financial decisions. The practical impact of these changes makes AI governance an operational necessity rather than a technological luxury for the debt collection industry. Because the CFPB firmly maintains that there is no "fancy new technology" carveout from traditional collection regulations, agencies must strictly audit their automated voice, text, and email platforms to prevent severe FDCPA and UDAAP violations. For debt collectors, this means heavily investing in automated compliance layers, real-time contact risk optimizers, and audit trails to track every automated touchpoint, eliminate identity verification errors, and verify that autonomous systems honor localized communication thresholds. How Are Consumers Feeling? Consumer sentiment metrics show a steep rise in anxiety, reflecting the strain seen across underlying economic datasets, and financial dread is climbing up the income ladder. A recent Wall Street Journal poll indicates that economic anxiety is widespread even among families earning $150,000 or more. Over 40% of these upper-middle-class respondents do not feel financially prepared for retirement, and nearly 60% report feeling severe strain from gas prices. Similarly, a CNBC survey found that 51% of Americans believe the American Dream is completely out of reach due to the ballooning cost of living. TransUnion’s Q2 2026 Consumer Pulse study revealed that 83% of consumers rank inflation among their top three household worries, followed by recession fears at 51%. Affordability angst has hit Gen X the hardest, with this group reporting the highest levels of financial stress across all spending categories and only 28% of overall consumers planning to seek new credit. What Does This Mean for Debt Collection? For financial institutions, managing recovery efforts today requires a tactical pivot that prioritizes financial empathy, highly adaptive workflows, and airtight compliance strategies. Transition to Analytics-Based Segmentation: The traditional K-shaped model has evolved; with upper-middle-class households experiencing intense anxiety and lower-income segments facing absolute budget exhaustion, a standard approach to collection will fail. Agencies must deploy data analytics to differentiate between consumers who have structural incapacity to pay and those who are selectively prioritizing expenses due to inflation. Flexible, Low-Friction Digital Resolution Options: Given consumer budget constraints, rigid settlement demands will drive accounts directly into default. Instead, debt collectors should offer highly customizable, self-service repayment structures that allow users to build interest-free payment schedules and respect their immediate cash flow constraints. Multi-Jurisdictional Compliance and Auditable AI: As federal collections decentralize and individual states step up oversight on fintech and AI algorithms, compliance agility is mandatory. Collection platforms using machine learning or automated outreach must establish strict governance policies to seamlessly adjust to state-level fair lending and communication rules. Understand What’s Driving Recovery Rates: If you’re focused on supporting compliant outreach, increasing payment rates, optimizing liquidation strategies, or driving stronger ROI without simply sending more debt collection messages, don't miss tomorrow’s webinar with experts from TrueML's channel operations and product teams. Register here. Sources: Urban Institute - Credit Cards and Savings for Groceries Equifax - Market Pulse Index Yahoo! Finance - Jeff Bezos Bureau of Labor Statistics - Inflation CNBC - Jobs Report Federal Reserve Bank of New York - Household Debt The New York Times - Credit Card Hamster Wheel Reuters - ACA Marketplace Dropouts AP News - Student Loans Wall Street Journal - Discount Retail Sector National Mortgage Professional - Circular 2026-03 CFPB - Regulation B Amendment CFPB - 2026-2030 Strategic Plan Consumer Finance Monitor - Colorado ADMT Act Wall Street Journal - Economic Anxiety TransUnion - Q2 2026 Consumer Pulse

As AI agents grow in popularity within the debt collection industry, there is a core question being asked by businesses - who do consumers trust more, AI or human agents? There’s an assumption that consumers will always prefer a human since they provide an innate understanding that AI technology can’t replicate.  When we look at the data and consumer trends, the answer is more complicated and nuanced. We’re going to take a closer look at the dynamic between consumers trying to resolve financial obligations with humans and AI agents for debt collection.  Consumer Trust in Debt Collection Often Comes Down to Resolutions For consumers, the main goal is usually less frustration and a more effective resolution to their financial obligation. Whether it’s an AI or human agent that delivers the frictionless experience, most consumers don’t really have a preference between the two.  There are plenty of automated systems and AI processes in everyday life that often don’t work as intended. So, consumers want digital and AI experiences to work without any hiccups. The question of trust comes in when there’s challenges in the experience like AI not understanding consumer answers, the process taking too long and more.  The AI Agent Trust Gap with Consumers The Parloa Consumer Patience Index report highlights that customer service automation and AI agents can cause trust issues with consumers. According to the study, roughly 30.4% of consumers have zero trust in AI’s ability to handle complex cases. What’s even more staggering is that 93% of the survey respondents said that legacy Interactive Voice Response (IVR) systems fail too often before their issue is resolved.  Modern AI agents have to regain the trust lost by these outdated AI technology tools. It’s created a consumer trust gap that the debt collection industry should be aware of:  The 3-Minute Time Limit: 55% of consumers will disconnect with an automated or AI system within three minutes if their problem isn’t solved.  Frustration is Common: 61% of consumers admitted to yelling at an AI agent to get routed to a human agent faster.  The Time Trade-Off: Roughly 66% of consumers would rather wait longer for a human agent because they believe AI agents aren’t as accurate.  What This Means for AI Agents Used for Debt Collection On the surface it might seem like consumers are against AI agents, but that isn’t the case. The same Parloa survey reported that 85% of consumers would prefer to use AI agents if it solved their problems reliably. Consumers want AI agents to be effective in debt collection because it’s a great way to avoid feelings of judgement or shame that often come with talking to another person.  AI technology will continue to evolve and get better at solving consumer problems. In the meantime, there are a few key strategies that businesses can use to help bridge this consumer trust gap in debt collection:  Easy Human Handoffs: When your business is using AI agents, make it easy for consumers to be transferred to a human agent. Ideally, the AI technology will detect rising consumer frustration through keywords or tone of voice and pull in a human agent.  Give Consumers Self-Service Options: AI and human agents aren’t needed for every problem. Give consumers the ability to self-serve with payment portals attached to debt collection email and text messages.  Practice AI Transparency: It’s recommended to disclose to consumers when they’re talking with an AI agent. By disclosing this up front, it reduces the risk of consumers becoming frustrating by finding out later on in the conversation.  Which Agents Do Consumers Trust More  Right now, trust in human agents is higher compared to AI counterparts. However, that gap is closing rapidly as technology evolves. In the debt collection industry, consumers want to trust AI agents, but businesses need to prove that the process can go smoothly. Companies like TrueAccord have shown that empathy and understanding don’t always have to come from a human voice.  AI and human agents can both be used to offer a frictionless and consumer-centric experience for debt collection. Digital-first collection strategies empower consumers to interact when, where and how they want. The true debate isn’t about whether or not an AI or human agent is the best for consumers - the best collection strategies leverage both to provide a better experience.  High-Performance Recovery That Puts Consumers First Is your business looking to put a more consumer-centric emphasis into your recovery strategy? TrueAccord is a premier omnichannel debt collection agency that offers first and third-party services that put consumers first. We take the guesswork out of collections with a patented machine learning engine that optimizes engagement with each consumer. Contact our team today to learn more about how business can increase recovery performance and consumer trust. 

2026 is shaping up to be a defining year for debt collection strategies. Consumer expectations have changed, economic pressures continue to weigh on the economy and AI technology is more essential than ever before. Some of the most successful recovery strategies proactively adjust their approach based on important trends like these.  To help give your business a clearer picture of how to approach debt collection for the rest of 2026, we’ve compiled five trends to keep in mind. 1. Inflation Rates Are Rising According to the recent Consumer Price Index data from May, the annual inflation rate rose to 4.2%, continuing its upward trend over the first half of the year. This increase was mainly fueled by higher energy costs that put more financial pressure on consumers. With food, housing and medical costs also rising, essentials being more expensive leaves less room in household budgets for other financial obligations. As the year continues on, experts expect that these costs will continue to go up.  This means debt collection strategies should be looking at how to grab attention, be authentic and meet consumer expectations. Outreach that doesn’t align with these pillars is far less likely to be prioritized by consumers facing financial challenges. 2. Personalized Engagement is Key There was a time when the standard for debt collection was a one-size-fits all approach,  simply increasing the volume of communications in order to get better results. This traditional method is even less likely to get results in the back half of 2026. Personalization is a powerful debt collection trend this year and will likely pick up even more steam. Consumers today want businesses to meet them where they are with the right time, channel and message. It’s important for digital debt collection strategies to be flexible and adjust based on how each consumer responds.  AI technology can help businesses uncover the outreach methods each individual consumer is most likely to engage with. For example, a consumer who is in the early stages of delinquency might prefer more messages to keep the obligation top of mind.    3. Speed is Part of Empathy in Digital Debt Collection Empathy has been well established to be a core part of effective modern collections. However, it’s easy to forget about how much an efficient, accurate and speedy process contributes to extending empathy to consumers. One of the biggest debt collection trends in 2026 is making the repayment process more hassle-free. Self-service options are going to be even more valuable since they let busy consumers make repayments on their own schedule.  Think of speed as its own lever in digital debt collection. There are consumers who want a slower experience and might need more space before making a repayment. AI technology can adapt to these nuances by adjusting message frequency, using a more empathetic tone or even handing off to a human agent. The goal should be to make the debt collection process less emotionally taxing for consumers. 4. Collections Compliance Should Be Proactive Collections regulations are constantly evolving. One core market trend in debt collection is that federal regulations around consumer privacy and AI have been falling behind state action in 2026. With bellwether states like New York and Colorado implementing new debt collection and AI regulations, more states are likely to follow suit this year.  Does your first- and/or third- party digital debt collection strategy have the capability to ensure compliance control that’s backed by legal experts? As the patchwork of state regulations becomes more complex, debt collection outreach needs to be flexible and adapt to changes in case law and regulations. 5. Improving Consumer Contact Data Most modern digital debt collection strategies use a multichannel approach to reach consumers. By having the ability to reach out across different channels such as email & SMS, businesses meet more consumer preferences and increase the opportunity for meaningful engagement. Even better, look for an omnichannel strategy that links and optimizes channel selection based on consumer preferences. For these approaches to work, collection strategies need accurate consumer contact information across multiple channels.  This is a big priority and key debt collection trend for the rest of 2026. Try not to wait until a consumer account falls behind to verify or fix contact data. By communicating to consumers that your business protects their data, you can build trust and make it easier to acquire verified information. How Is Your Digital Debt Collection Performing in 2026? TrueAccord is the premier digital debt collection agency that leverages AI technology to offer consumers an empathy-driven experience. If your recovery strategy is looking for extra support to end the year on a strong note, our team is here to help. Connect with us today to learn more about our full-lifecycle recovery solutions.  

There’s a question that almost every recovery strategy has to address: What does the right debt collection message look like? The answer isn’t straightforward. Every customer has unique preferences when it comes to the communication channel, the tone of the message and more that businesses should try to honor in order to engage them effectively. The real answer is, the right debt collection message looks different for each individual.  With the countless variations in consumer preferences, how are debt collection strategies supposed to find the right message? We’re here to answer that question and provide some helpful steps businesses can take to improve their recovery strategy. The Right Message Starts with Personalization Many traditional debt collection communications, in the interest of efficiency at scale, speak to every consumer the same way. There’s no change in tone or sentiment found in the message, and the only personalized piece is the account details. That approach is no longer enough for today’s consumers who expect businesses to go the extra mile and honor their preferences. So, how can debt collection strategies meet this expectation?  An omnichannel approach offers collection strategies the flexibility to send messages through the channel each consumer prefers. The ability to send emails and text messages makes your business better equipped to meet consumers where they are. It’s also important to have messages with different tones. For example one email template could focus on being upfront and transparent in the messaging which could appeal to consumers who prefer businesses that are direct and fact-driven.  AI technology can also help businesses add personalization to debt collection messages and other communications to build rapport and approachability. AI agents can be trained to pick up on unique consumer nuances. As an example, one of TrueAccord’s AI-generated responses signed off an email with “may the force be with you”, since the consumer it was speaking to had a Star Wars themed signature. To Find the Right Message, You Need Options For digital communication channels, it’s important to have a variety of content templates to use. Not only does this help your recovery strategy honor more consumer preferences, but it also allows more flexibility to optimize recoveries. TrueAccord, for example, has hundreds of email and SMS templates that business partners can choose from. In this library, there’s a variety of templates that are made to address different stages of the collections lifecycle with different messaging approaches.  There are a few aspects that make TrueAccord’s approach to sending the right message unique. The first is in the TrueAccord content team that works to create and refine content templates, adjust subject lines, and test new approaches to match consumer preferences. The second is that TrueAccord uses a patented machine learning engine called HeartBeat that works through millions of data points to select the right message for each individual account.     Debt collection messages shouldn’t take a one-size-fits-all approach. The core of an empathetic and human-centric approach is doing the work to understand the consumer before reaching out. This goes beyond the words in the messages being sent. The right debt collection message is also sent at the right time and through the right channel, to help drive engagement without aggression. Debt Collection Messages Need Self-Service Options Oftentimes, the right debt collection message has a self-service option that allows consumers to handle their financial obligations without talking to a human. When a debt is owed, it’s common for people to have feelings of shame, anxiety or judgement about the situation. These feelings often escalate when it needs to be discussed with another person to be resolved. Self-service options help cut through that barrier and put consumers in control.  In fact, roughly 90% of TrueAccord customers resolve their debts through self-service without talking to a human. The right message should have the option to use an intuitive digital portal that makes the repayment process more convenient. As consumer preferences continue to overwhelmingly favor digital communication channels, self-service options are a great way to engage with consumers who no longer want to pick up the phone. Compliance - The Unsung Hero of Collection Messages No matter what type of content is being sent to a consumer, the right debt collection message needs reliable compliance measures supporting it. Digital debt collection communications need a system that can keep up with the rapidly changing regulatory landscape and case law. Legal experts should be weighing in to help ensure the content in the debt collection messages being sent don’t break any rules or open up the business to risk. TrueAccord has compliance informed by legal experts and secured by code, with compliance firewall technology built within the system to ensure federal and state compliance requirements are being met. Send Debt Collection Messages That Put Consumers First TrueAccord is the premier omnichannel debt collection agency that uses AI technology to create a consumer-friendly experience and higher performance. With full lifecycle recovery solutions, the TrueAccord team can help your business find the right message with a human-centric approach. Contact our team today to get started.

Most businesses aren’t thinking about if they’re going to use AI to communicate with consumers, but how they can put the technology in action. For companies in highly regulated industries like debt collection, it's essential for AI to consumer conversations to be compliant and operate under responsible engagement.  To make this notion a reality, there are four key pillars businesses should follow to implement AI for consumer communications ethically and responsibly. Pillar 1 - Building a Proper AI Data Integrity Foundation For top musicians and athletes, an amazing performance is the product of countless hours of practice. In the world of AI, that grounding all happens in the foundational data layer. The best AI foundations are set up to prevent hallucinations (cases where AI models make-up facts) and limit the number of context gaps the technology fills in.  The first step to achieve this is the idea of “treasures In, treasures out”. This means setting up a highly structured and vetted knowledge base for AI tools to pull from. One of the best ways to put this into practice is with a RAG (Retrieval-Augmented Generation). Think of RAG as an open book test. Instead of the AI guessing at the answer for a certain situation, there’s a verified source of truth from your business that it can rely on to formulate its real-time response with consumers. Other key aspects of reliable foundation include:  Knowledge Base Curation: Build a single source of truth for your compliance data.  Structured Templates: Create response templates for sensitive consumer interactions.  Vetted & Restricted Terminology: Maintain a list of approved industry terms and any banned language.   Pillar 2 - Designing the Right Omnichannel Blueprint After the AI is trained, your communication strategy needs a playbook to follow, using both AI and human agents, for effective communication with consumers. This way, organizing email, text and phone call conversations is done in accordance with your omnichannel strategy. It’s important for AI tools to have clear paths to be highly efficient, while always displaying the empathy consumers expect from businesses. To help with this goal, it’s important to never let an AI operate in a silo, there needs to be human oversight.  Modern AI technology excels at dynamic intent recognition. By analyzing consumer data points in real time, the system can use this information to shift its approach in real time. For an omnichannel strategy, this equates to AI optimizing interactions based on data unique to interaction with a specific consumer, in contrast to the traditional a one-size-fits-all approach. While human agents are needed for more complex cases, AI can be effectively leveraged to take care of low-risk interactions and repetitive tasks. Pillar 3 - Transparency in AI to Consumer Interactions Now it’s time for AI systems to interact directly with consumers, and it’s essential for the digital handshake between them to go off without a hitch. First, responsible AI begins with disclosing to the customer that they’re talking to AI. By starting off with honesty, your business will build baseline trust and lower the risk of customers being caught off guard and ending the conversation.  In debt-related conversations with businesses, consumers can have an undertone of shame, anxiety or even embarrassment. In these situations, many consumers may prefer interacting with AI since it strips away the emotional friction of human judgement. It often makes it easier for the consumer to calmly explore their options for repayment, smoothing out the debt collection process.  AI systems can also monitor positive and negative keywords, which is beneficial in each scenario. If a negative keyword is mentioned by a consumer, or the AI picks up on escalating frustration, it can be trained to hand off the conversation to a human agent. Conversely, AI can match a consumer’s positivity and guide them more effectively to self-service solutions. Pillar 4 - AI Post-Performance Review The final and most crucial pillar of an AI tool’s communication with consumers is a performance review to foster continuous improvement and human-in-the-loop governance. Similar to a car, AI models experience performance drift as real-world consumer behavior shifts, requiring continuous calibration to keep outputs accurate. By running continuous testing on AI models, your business reduces the risk of errors or hallucinations occurring during customer interactions.  It’s important for businesses to treat AI systems the same way as a human agent. This means working to create the following:  Human-in-the-Loop Accountability: Assign clear owners who will audit AI transcripts and decisions made for consumers.  Reinforced Learning: Take time to steer the AI system through feedback loops, mark optimal outcomes and manually correct missed opportunities.  Stop Lever: Have a definitive “stop button” mechanism so if a system mistake is detected, supervisors have the ability to process immediately. A Consumer-Friendly Experience for High Performance Recovery TrueAccord is the premier omnichannel debt collection agency that leverages data science and AI technology to deliver a consumer-centric experience. With full-lifecycle recovery solutions, our team gets rid of any guesswork to find consumers a way forward. Contact our team to learn more about our first and third party services.

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.