Author: Matt Kulik

Why Personalization Matters in Debt Collection

By on March 10th, 2026 in Machine Learning, Product and Technology
A debt collection professional working at a computer.

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.

Is the Best Debt Collector an Algorithm? 

By on February 20th, 2026 in Industry Insights, Machine Learning, Product and Technology
The blog title set in front of a robot waving.

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 Expands Full-Lifecycle Support  with New First-Party Collection Services

By on February 11th, 2026 in Industry Insights
The blog title in front of a green and blue background.

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. 

Debunking 3 Common Digital Debt Collection Myths

By on February 3rd, 2026 in Industry Insights, Machine Learning, Product and Technology
The blog title set next to an image of a justice scale.

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.

Anticipating the Trend: How Consumers Use AI for Debt Collection Negotiating

By on November 25th, 2025 in Industry Insights, Machine Learning
A robot working on a computer set behind the blog title.

You might have heard of Rocket Money before. It’s a subscription finance app for consumers that helps with budgeting and tracking spending. One of its core features is negotiating with companies on a user’s behalf to lower the monthly bills of streaming platforms, cell service and more. In many cases, this process uses agentic AI for the negotiation process – a tactic that consumers could adopt for themselves. 

Consumers are already using AI to help make financial decisions. LLM tools like ChatGPT will create a budget, and AI can be used to call stores to check stock and even make purchases. And with GenAI tools being widely available and incorporated into day-to-day tasks, consumers are even using AI to draft emails, scripts and texts to use in debt collection negotiation. 

The industry will see more consumers using the technology more heavily on their end as well.  In this blog we’re going to explore the emerging frontier of consumers using AI for debt settlement.    

Consumers Could Use Agentic AI to Call Debt Collectors in the Near Future

As AI becomes more widely accepted and used, consumers will likely start using AI agents to interact with debt collectors to try and resolve a debt. If consumers start using agentic AI to negotiate debts, there’s logistical and legal challenges that will arise.  

For example, if the AI agent does not identify itself as an AI (which is NOT considered to be current best practice for businesses), questions will arise around who the collector is speaking to and what authority they have.

Even if these AI agents have identifying information for the consumer, such as SSN, phone number and DOB, debt collectors will need to find ways to ensure that the AI is actually acting for the consumer and that it is not a bad actor. 

If a debt collector gets a call like this, it may be a scam. Industry experts say that if AI agents for consumers are regularly used, there has to be a dedicated verification step. This could mean the consumer getting on the phone to confirm their identity, or implementing some type of two-step verification system. Currently, the idea of an AI agent claiming to represent a consumer raises too many core issues for collectors. 

How Should Debt Collectors Treat Consumer AI Agents?

There’s a debate currently going on within the industry on how consumer AI agents should be treated if the trend develops. One view is that the AI should be seen as an extension of the consumer, just like a business’s use of AI is considered an extension of the business. Another is that the AI agent could be considered a third party, meaning the debt collector might not be allowed to share details of the debt. 

As the use of consumer AI agents grows, debt collectors will need to work out internal processes for how to manage these calls. Eric Nevels, Sr. Director of Operations Support at TrueAccord, says that until a legal precedent is set, businesses will need to create policies on whether to treat undeclared AI agents as the consumer or as a third party. 

The Most Popular Consumer AI Debt Collection Negotiation Tactics Used Today

AI agents are still a ways out from mass adoption by consumers. Most consumers using AI to help with debt collection negotiations do so by asking LLMs like ChatGPT, Claude and Gemini for guidance on financial matters or to generate scripts to use when calling collectors to negotiate a debt. Many people don’t feel comfortable negotiating, and LLMs give consumers confidence by arming them with information and making them feel like they have an expert on their side.

The same approach is being used with collection emails and texts as well. Consumers can easily plug in digital debt collection messages into AI platforms to help decide the best way to respond. This makes the messaging of a debt collector’s emails and texts more important. For example, an email that uses aggressive language is more likely to cause an LLM to advise a consumer to dispute a debt. On the other hand, an empathetic message offering options could prompt AI platforms to encourage the consumer to work with that collector.    

Businesses need to be aware that consumers now have the ability to analyze large amounts of their own financial data to help inform what payments should be made to collectors. LLMs have already reached mass adoption by consumers and are much easier to use than a more complex agentic AI. Consumers can now plug in all their debts into AI platforms to get a recommendation on what to pay down first. It’s one of the reasons why businesses need to gain a deeper understanding of AI use in debt collection. 

Ready to Boost Your Collection Efforts with Industry Leading AI?

With more consumers using AI for debt settlement and negotiation, your business needs to provide a digital-friendly experience. TrueAccord uses Heartbeat, a patented machine learning engine that uses dynamic feedback combined with millions of customer interactions to figure out the best way to engage each consumer for better payment results. 

It’s a personalized, self-service experience that honors consumer preferences while driving more engagement. Contact us today to learn more about how TrueAccord uses AI to collect more from happier consumers. 

Are Voicemail Drops in Debt Collection Compliant?

By on November 12th, 2025 in Compliance, Machine Learning
The blog title set in front of a phone getting a voicemail.

Think about the last time an alert pinged on your smartphone for a new voicemail. There’s a small spike of curiosity as you look to see who left the message and what they had to say. The rise of financial scams have made people more hesitant to answer phone calls, leaning on voicemail as a makeshift call screening tool. The result is that consumers these days may be more likely to engage with a voicemail from a business than a direct call. 

Since the notification of a new voicemail grabs the attention of consumers, more debt collectors are using ringless voicemail drops in their strategies. Like many other regulations in the industry, voicemail compliance rules have to be followed by businesses looking to leverage this channel. Let’s take a look at the compliance considerations and best practices for debt collection voicemail drops. 

A Debt Collection Voicemail May Fall Under “Limited-Content Message” Rules

Under Regulation F, the Consumer Financial Protection Bureau’s (CFPB) debt collection rule, a voicemail drop can be classified as a “limited-content message” if certain requirements are met. Limited-content messages are not considered a communication by Regulation F’s interpretation of the FDCPA, and avoid the risk of third party disclosures due to the limited amount of information present in the message. To meet these requirements, the voicemail must include the following:

  • A business name that doesn’t indicate the business is a debt collector. 
  • Ask the consumer to reply to the voicemail message. 
  • The name of one or more natural person(s) whom the consumer can contact to reply.
  • A working telephone number the consumer can use to contact the business. 

Outside of these four essential elements, limited-content voicemails can also include a few pieces of optional information. These include a greeting (like “hello”), the date and time of when the voicemail was sent, suggested dates and times for the consumer to reply and informing the consumer they can speak to business representatives if they reply. To be considered a limited-content message, the voicemail cannot include any other information. 

Unlike digital channels of communication (like email and text messaging), voicemail drops fall under the Regulation F contact cap rules, which prohibit a debt collector from calling a consumer more than seven times in a rolling seven day period prior to a right party contact, or once per a rolling seven day period after a right party contact is made.

Since Regulation F treats voicemail drops as calls, they also have to be sent in a time that is convenient for the consumer, which the FDCPA presumes as a timing window between 8am and 9pm at the consumer’s location. Some states have stricter inconvenient time rules, so it’s important to have tailored compliance accounted for in your strategy. 

Debt Collection Voicemail Compliance & TCPA Consent Rules

Another important set of debt collection voicemail compliance requirements can be found under the Telephone Consumer Protection Act (TCPA). The TCPA requires prior written consent from a consumer before a debt collector uses prerecorded messages and artificial voices. This applies to ringless voicemails because they are typically pre-recorded (and potentially use artificial voice). 

Debt Collection Voicemail Drop Best Practices to Help Your Business Stay Compliant

While sending compliant debt collection voicemails might seem challenging, there are best practices that can help make managing them more streamlined: 

  1. Double Check State Laws: State laws around debt collection are subject to change at a faster pace compared to the federal level. It’s important to regularly check voicemail drop compliance rules for every state your business operates in. The rules and consequences for non-compliance are often stricter at the state level. 
  1. Keep Detailed Records: When your business is sending voicemail drops for debt collection, it’s important to keep detailed records. This includes delivery metrics, opt out requests and the frequency sent to consumers. 

To use ringless voicemails or traditional voicemails in debt collection is a tactical business decision that every business needs to weigh based on their own collections strategy. If your business wants to follow best practices, the right partner can help. TrueAccord is an industry-leading recovery and collections platform that has proven experience in sending compliant digital debt collection messages. 

*If you’re looking to use digital channels for your internal collections strategy, our sister company can help. Learn more about Retain white-label debt collection software here.

TrueAccord Helps You Collect More from Happier People

TrueAccord is a debt collection platform that can handle all of your delinquency needs from one day past due to charge-off. Our patented machine-learning engine, Heartbeat, optimizes and improves digital debt collection efforts over time. Learn more about how digital communications can improve your collection efforts by contacting our team! 

*The blog post above is meant for informational purposes only, and does not constitute legal advice. 

The AI Regulatory Landscape Across the States: A Look At States Laws on AI

By on October 27th, 2025 in Compliance, Industry Insights, Machine Learning
The blog title set in front of an image that has a gavel sitting on a circuitboard.

There’s no shortage of federal regulations in the financial industry. However, there’s a noticeable absence of federal oversight when it comes to governance over artificial intelligence (AI). A regulatory vacuum around AI policies has emerged at the federal level, which has ceded the initiative to individual states. This has prompted a specific set of state regulatory models on AI that are pioneering risk frameworks and how they interact with various use cases like AI debt collection strategies. 

The process of navigating the state-led AI legislation and regulations in US financial services is complex, and requires specific industry knowledge. In this blog post, we’re going to dive into why states are leading the charge, and the type of landmark laws and regulations some states are enacting that are going to set the tone moving forward. 

Why AI Regulations Are Being Led By States

Back in July, the current administration released “America’s AI Action Plan”, which is focused on building AI infrastructure with over 90 policies with the goal of being a global leader. AI technology is rapidly being integrated into the US economy and financial services industry. While there have been multiple AI-focused bills introduced in Congress over the past few years (including two new bills in July of 2025), none of them have gained enough traction to get passed. This led to increased tension between federal and state governments, which came to a head once the “One Big Beautiful Bill” was passed on July 4th, 2025. 

Originally, there was a provision in the bill proposing a ten year moratorium on states enacting or enforcing their own laws on AI. This was a top priority for technology companies who were trying to avoid a more complex regulatory landscape, but the provision was stripped in the bill’s final version. Experts agree this move was a clear signal that states are going to be the primary architects of public policy governing AI for the foreseeable future. 

The Federal Stalemate in AI Regulations

One of the root causes for why there’s been federal inaction towards AI regulations is a debate about how the process should look. There is one perspective pushing for a technology-neutral approach, claiming that existing laws are enough to govern AI technology. For example, the existing US laws on discrimination, fraud or defamation already apply to AI technology and businesses, so no new laws would be required. In short, this outlook focuses on punishing bad outcomes from AI rather than trying to regulate the technology itself. 

At the other side of this debate are regulators who want rules surrounding AI technology itself. There has been a wave of state laws and regulations that support this approach with Colorado and California pushing new requirements to address AI. They’re not just retooling old laws, states are creating novel legal categories like deployers and developers of AI and assigning them proactive duties of care. It’s a stance that believes states laws on AI need to have specific and rigorous rules in place to better protect consumers.

The Pioneering State Laws on AI You Should Know

The Colorado AI Act (CAIA)

The Colorado AI Act (CAIA), was the first comprehensive, risk-based AI law in the United States that was enacted in May of 2024. The CAIA created a framework for creators and users of high-risk AI (which many financial applications fall into) to follow. The Act states that developers and deployers of AI technology have a duty of “reasonable care” to protect consumers from the risks posed by the technology. One of those top risks called out by the CAIA is called algorithmic discrimination, which is the unlawful differential treatment by AI technology of an individual or group of individuals that are part of a protected class. 

The duties for developers and deployers under CAIA are met if those parties adhere to these obligations: 

  • Developer Obligations: These makers of AI technologies have to provide extensive documentation on their products. This includes data on how the AI is trained, what steps are made by the developer to prevent bias, what the foreseeable use cases of technology are and more. Developers also have to notify the Colorado Attorney General within 90 days if their AI technology has caused or is likely to cause an algorithmic discrimination. 
  • Deployer Obligations: Deployers (like a company using AI for debt collection), are required to implement and maintain a risk management program. They also have to perform annual assessments of AI technologies and notify consumers of changes being made. Consumers also have the right to correct any inaccurate data being used by AI systems with the right to appeal any decision they don’t agree with by human review.

The Financial Compliance Exception for Colorado’s AI Act

In Colorado’s AI Act, there’s an important provision for the financial industry and companies using AI for debt collection. The CAIA says that financial institutions such as banks, credit unions and insurers are considered to be already in full compliance with its requirements. However, this provision doesn’t provide universal protection. 

This exemption pressures federal agencies and other state banking institutions to develop their own AI governance rules. If they don’t, financial institutions that do business in Colorado could face punitive actions through CAIA. This law is set to indirectly influence the development of national AI regulation standards by creating the bar that other regulators have to meet.

California’s Draft Regulations for Automated Decision Making Technology

Another standout in state AI regulations is California’s draft regulations for Automated Decisionmaking Technology (ADMT). At this time, the draft regulations were approved and will go into effect on January 1, 2026, and they do represent the most consumer rights-focused AI regulations in the US. The regulations are designed for businesses that use ADMT to make important decisions about consumers. The state law definition of “important or significant decisions” includes financial services, lending, debt collection, insurance and much more. 

Since consumer well-being is at the core of these draft AI regulations, California is trying to establish three core rights: 

  1. Right to a Pre-Use Notice: Before a business uses ADMT for an important decision, they have to notify consumers explaining how the AI technology works in a way that’s easy for them to understand. 
  1. Right to Opt Out: Consumers have the right to tell businesses that they don’t want ADMT to be used for making important decisions about them. 
  1. Right to Access Information: Consumers will have the right to request information about the logic being used in ADMT processes. For financial institutions, this means businesses won’t be able to just deploy AI technology into their operations without having a deep understanding of how it works. 

Many experts say that these rights will cause a shift in how financial institutions interact with vendors who provide AI technology. The ability to easily explain the technology will go from being a nice-to-have, to a requirement. It’s likely there will also be an overhaul of risk management for AI technology vendors. Due diligence being done for these partnerships will have to go deeper to ensure that these new consumer rights are being honored.

What Does This Mean for AI Debt Collection?

AI in debt collection continues to increase in adoption because of how it lets businesses better honor consumer preferences while being able to scale. As bellwether states like Colorado and California are setting the standards for other states to follow, the laws and regulations surrounding AI are shaping up to be a patchwork system similar to that of debt collection compliance. 

For businesses that are looking to benefit from using AI in debt collection, you need a partner who’s an expert in compliance and keeping up state law and regulation developments. The state laws and regulations around AI are going to evolve just as fast, if not faster than debt collection rules. Debt collection strategies that are set up to quickly adapt are the most likely to achieve long-term success.

TrueAccord Is Built to Keep Up with Compliance and AI Changes

TrueAccord is an industry-leading recovery and collections platform that’s powered by patented machine learning. Our legal team follows developments in industry regulation updates across the country and maintains machine learning governance models to ensure complete compliance control. 

When the world is changing fast, you want a debt collection partner that has proven flexibility to quickly adjust to new rules and regulations. Contact us today and learn more about how you can collect more from happier people.

Is Cold Calling Dead for Debt Collection?

By on October 1st, 2025 in Customer Experience, Machine Learning, Product and Technology
The blog title set in front of a grave stone with a phone symbol on it.

As a strategy, cold calling for debt collection has plenty of roadblocks like caller ID, spam filters and number lookups that make success difficult. Many experts in the industry are wondering if cold calling is about to enter an ice age because of a feature in Apple’s new IOS 26 update. It’s estimated that there are 130 million iPhones in the US, and many of them are about to have advanced call screening software. 

What does this mean for the debt collection industry? How does this new update work and put more power back with consumers? Join us as we break down this newest barrier to cold calling and what it could mean for businesses looking to maintain or improve their collections. 

How Does Apple IOS 26 Affect Cold Calling?

Before we dive into the industry impact, let’s take a minute to explain how Apple’s IOS 26 update affects cold calling strategies. This software update is giving iPhones 11 and newer call screening software as part of Apple’s push for higher consumer privacy. 

When a consumer receives a cold call, the caller will be prompted to say their name and reason for contacting them. The consumer will see a transcript of the caller’s response on their phone screen. From there, the consumer has the option to accept or ignore the call. By default, iPhones will screen phone calls from unknown and unsaved numbers. The goal of the feature is to protect more iPhone users from scam and unwanted sales calls that have seen a dramatic rise in the last few years. 

Is Cold Calling Really Dead in Collections?

Is cold calling for debt collection really dead? The answer depends on who you ask. Experts in the industry are split into two camps: 

  • Cold Calling is Dead for Bad Calls: Many businesses and experts in the debt collection industry say that the strategy is only dead if it’s not targeted, informed by data and/or compliant. In their view, this update is the death of “bad” cold calling. The new iPhone screening process is also seen as an opportunity for collectors to refine their elevator pitch for more effective cold calls. 
  • Cold Calling is Dead For Good: Others in the industry pose that since so many more consumers now have access to easy call screening, cold calling is no longer viable. They predict that this will be the catalyst for the vast majority of collection strategies moving to digital communications.

To answer the original question, it’s unlikely that cold calling will go away entirely. There will be instances where a cold call is the best chance at reaching certain consumers. Even though it’s not the majority, some people still prefer to be contacted by phone. Cold calling won’t be wiped out completely, but collectors need to consider shifting to an omnichannel approach for effective debt collection.

Why Cold Calling for Debt Collection Is Seeing a Downturn 

Cold calling isn’t dead, but it’s no longer the most effective collection strategy available. There are three core factors that are contributing to the decline of cold calls: 

  1. Consumer Privacy Movement: Consumers want more privacy than ever before. The rise in scams and algorithm data gathering are just some of the factors contributing to this movement. Phone calls are perceived as one of the most personal communication channels, and a cold call often feels like an invasion of privacy. 
  1. Strict Regulations: Over the last few years, the regulations around outbound calls for debt collection have gotten more strict. For example, Regulation F’s 7 in 7 rule prohibits collectors from calling more than seven times in a 7 consecutive day period. It’s increasingly complicated to compliantly cold call customers, and code-based compliance available with digital communications offers less risk for businesses. 
  1. Shifts in Communication Preferences: Most consumers want to be reached through their preferred channels. And 59.5% of consumers prefer email to be the first channel a business uses to contact them. If you contact a consumer through their preferred channel, it can lead to a 10% increase in payments. Consumer communication preferences have already gone digital, and traditional options like phone calls become less popular each year. 

Cold Calling Can Live On in Omnichannel Strategies

Cold calling for debt collection is going to live on, but the strategy needs to evolve and become part of an omnichannel approach. Introducing digital communication channels to your collection strategy helps you engage customers with the right message, at the right time and through the right channel. 

An omnichannel approach gives your collections efforts the ability to service more of your customer portfolio and easily scale if more accounts are added. It’s a more streamlined method compared to using segmentation or propensity to pay models in outbound calling that limit the number of people you’re able to reach at one time. 

Many debt collectors are also shifting to integrate payment portals into their collections strategy. A payment portal gives consumers the ability to schedule payments at their own convenience, which helps improve repayment rates. It also streamlines operations and reduces compliance concerns since agents no longer have to call-to-collect. 

* A core part of many omnichannel collection strategies are email and SMS. If you’re curious to see how your business could automate digital channel in-house, our sister company Retain can help. Learn more about white-label debt collection software today.

Personalize Your Collections Strategy with an Omnichannel Approach

The process of shifting your collections strategy to an omnichannel approach doesn’t have to be a challenge. TrueAccord’s digital first approach to debt collection can efficiently and compliantly scale to any volume of delinquent or defaulted accounts. Are you ready to maximize your collection results with a digital first approach? 

Contact our team today and schedule your consultation. Together, we can build a personalized experience that leads to better collection results.    

The Importance of Social Proof in Debt Collection

By on September 17th, 2025 in Industry Insights, Customer Experience, Machine Learning
The blog title set in front of a person leaving a customer review on their phone.

It’s common when you put a debt collection company’s name in a search engine, one of the most popular queries is asking if the business is legit. For many consumers, there’s an inherent doubt that comes with receiving a debt collection communication, which often leads to the message being ignored. 

If a consumer gets reassurance from an unbiased source (like another consumer), any doubts about interacting with the company often fade away. This concept is called social proof, and it’s extremely important in the debt collection industry. Let’s take a closer look at the relationship between social proof and debt collection. 

Social Proof Starts with Ethical Debt Collection Practices

The process of having and paying back a debt can be a stressful experience for many consumers, especially when facing financial hardship. It’s an expereince that is more intense and nerve wracking when companies use aggressive collection tactics like excessive calling or threatening. These more forceful approaches are part of the reason why many consumers doubt the legitimacy of debt collection messages. 

The first step in reducing consumer uncertainty is practicing ethical and consumer-friendly debt collection. It’s why more companies are taking an omnichannel approach to sending repayment notifications. Digital communication channels like email and SMS/text give consumers more opportunity to engage with messages on their own terms. When the ask for a repayment is more humane, a consumer is not only more likely to act on it, but share their positive experience with others or online. 

When a consumer sees that someone else had a positive experience with a certain debt collector, it can reduce their anxiety about getting a repayment notification. Oftentimes a few positive affirmations from people in a similar financial situation is the difference between making a payment and ignoring a message. 

Social Proof Can Encourage More Engagement from Consumers

When a consumer receives a debt collection notification, they might feel alone, isolated and unsure of the best way to handle the situation. In fact, this is a common reaction for many stressful events we experience in life. In these situations, many people’s first instinct is to seek advice from others who can relate to their circumstances. For example, if they hear from another consumer that the process of making a payment was easy, engaging with the notification doesn’t feel as intimidating. 

Debt collection companies themselves can also offer consumers social proof. A great way to do this is by providing insight into how other customers handled their financial obligations. If your business sends an email notification to a customer, you could offer examples of how other customers with a similar balance chose a payment plan to resolve their debt. A subtle tip on how others in their situation took action can increase the likelihood of that customer making a repayment. 

The connecting thread between both these instances of social proof aren’t phrasing things as a demand, they’re suggestions backed by the experience of peers. That’s the core of social proof that can increase repayment rates and build trust with consumers. 

Social Proof Helps to Humanize Debt Collection

Social proof has the power to turn the perception of a debt collector from an intimidating unknown to a partner that helps people with financial wellness. By putting this notion into practice, debt collectors can improve their reputation with consumers. What does this look like in action? Here’s a few ways debt collection companies can bring this to life: 

  • Leverage AI in Debt Collection: AI can be used in debt collection to create a better experience for consumers. Machine learning platforms can figure out the best way to honor each individual customer’s communication preferences. These AI processes help make the customer feel more valued, improving the likelihood they will share their experience. 

It’s important that all social proof strategies being used by debt collectors follow legal guidelines and don’t overstep on customer privacy. The power of social proof is its honesty, transparency and ethical use. When it is used responsibly and paired with other strategies like leveraging AI in debt collection, social proof can improve recovery rates. 

Boost Recovery Rates with AI Debt Collection Strategies

Social proof and AI debt collection strategies are a great way for businesses to collect more from happier people. If you want to empower your debt collection solutions with machine learning and a consumer-first mindset, TrueAccord is here to help. 

Contact our team today to learn more about how we can handle all your delinquency needs.     

TrueAccord Named a Best Place to Work in Collections for 2025

By on August 12th, 2025 in Company News
The blog title set on a blue and green background.

TrueAccord is proud to announce it was recently selected as one of the 2025 Best Places to Work in Collections administered by ACA International and Best Companies Group. The award evaluates workplace policies, practices, philosophy, systems and demographics along with employee experience surveys to determine winners.

This survey and award program was designed to identify, recognize, and honor the best places of employment in the collections industry. This year, 48 companies met the standard to be selected. 

“At TrueAccord, we prioritize our mission-driven culture and employee engagement to deliver results for clients and consumers with digital-first debt collection,” commented Mark Ravanesi, CEO of TrueAccord. “I’m honored but not surprised to be on the Best Places to Work in Collections list—our commitment to excellence is baked into everything we do, we put a strong emphasis on our community, and our employees are top-notch and empowered to bring their A-game every day.”

Companies from across the U.S. entered the rigorous two-part survey process to determine the Best Places to Work in Collections. The combined evaluation and employee survey scores determined the top companies and the final ranking. Best Companies Group managed the overall registration, survey and analysis process and determined the final ranking.

To be considered for participation, companies had to fulfill the following eligibility requirements:

  • Be a for-profit or not-for-profit business or government entity
  • Be a public or private U.S. company
  • Have a minimum of 15 employees in the U.S.
  • Must be in business a minimum of one year
  • Must be a collection agency, collection law firm or debt buyer

This survey program is administered by Best Companies Group, which conducts over 60 local, national and industry “Best Places” programs each year. For more information on the Best Places to Work in Collections program, visit: www.BestPlacestoWorkCollections.com. 

About TrueAccord

A subsidiary of TrueML Technologies, TrueAccord is the trusted industry leader in third-party debt collection, leveraging data science and technology to deliver superior results and a best-in-class consumer experience. Since 2013, TrueAccord has served more than 40 million consumers in debt with a more humane collection experience while delivering unmatched liquidation rates as the leader in digital-first collections for the Buy Now Pay Later, fintech, telecommunications and credit union industries, among others. Visit www.trueaccord.com and follow on LinkedIn to learn more.