How 2025 starts and how it ends are likely to be radically different, and reading predictions from a handful of professionals across the credit and collection industry shows on just how many fronts that statement applies. Without giving too much of their predictions away, the common theme to what this quartet thinks is going to happen this year is that those hoping for the status quo are likely to be disappointed. Read on to see exactly what this group of experts predicts is going to happen in 2025.
Chris Dunkum, First Collection Services
AI will become a more trusted tool as we consider how to use it to work consumer accounts compliantly and more effectively. As a result, data security is going to be a hot topic in our industry as well as in Federal and State legislation in 2025. The great news is that we have an opportunity with the new administration in DC to help legislators understand how we use data and help them as they craft legislation moving forward.
Data security certifications (like SOC2 and PCI) will continue to play a big role in our industry and with our clients. We see this in the proposed rule from the Department of Health and Human Services regarding an upgrade to the HIPAA Security Rule to strengthen electronic protected health information (ePHI) that will affect Business Associates. Cyber liability insurance requirements by our clients will continue to rise – almost becoming the new “errors and omissions” coverage.
Medical debt credit reporting will continue to be a trending issue for the industry as well. More states are likely to pass their own medical debt credit reporting rules. Change is the constant in our world.
Pam Kirchner, BCA Financial Services
In 2025, the ARM industry will face a rapidly evolving landscape shaped by technological advancements, economic pressures, and political shifts. A Republican administration is likely to reduce corporate taxes and regulatory oversight, creating a more business-friendly environment, though stricter immigration policies may exacerbate labor shortages, driving companies to explore offshoring and automation. The rise of digital communications and AI will continue to differentiate tech-savvy agencies, while data privacy, cybersecurity, and AI regulation will remain bipartisan priorities as security incidents increase. Consolidation within the industry is expected to accelerate, with more agencies merging or exiting the market, and credit reporting trends will likely reflect ongoing caution. Amid these changes, businesses must navigate rising labor costs and invest in innovation to maintain competitiveness.
Ari Derman, Clark Hill
2025 will be a year to remember. It will likely dictate the future of medical debt collection (on the Federal side): will the incoming administration inspire a reversal draconian policies we have seen or will it allow them to stand, effectively sealing the fate of this market segment for once and for all? Speaking of overregulation, the CFPB will be a frequent topic of conversation in this new year. No, despite what we all see and hear in the media, it is unlikely that the CFPB will cease to exist in the near future, but starting later this month we will definitely see some less punitive rulemaking from a new CFPB director. And if the previous Trump tenure is any reliable indicator, we will see enforcement actions remain steady, but the penalty amounts will come way down. 2025 is also likely to bring some newfound M&A opportunities to the table and some new market entrants from the fintech space. Oh yeah — AI will also continue to be a hot topic as states adjust to the rapid innovation related to it!
Rick Perr, Kaufman Dolowich
2025 is likely to mark a rollback of over-regulation by the CFPB. It is anticipated that many of the late-year proposals suggested by the CFPB will be shelved or significantly modified. With complete control of both houses of Congress along with control of the White House, the Republican Party will advance a unified financial vision that should benefit the ARM Industry.
