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.

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.