Post-Judgment Collections Can Still Trigger FDCPA Liability, Appeals Court Rules
- The Court of Appeals for the Seventh Circuit has vacated a lower court’s dismissal of a Fair Debt Collection Practices Act case, ruling the lower court judge misapplied the Rooker-Feldman doctrine related to the defendant’s conduct in attempting to collect on a garnishment order.
- More details here
Appeals Court Backs Creditor in Prescreened Offer FCRA Dispute
- The Court of Appeals for the Tenth Circuit has affirmed a ruling in favor of a creditor that was sued for violating the Fair Credit Reporting Act after it denied the plaintiff an application for credit it had previously prescreened him for. What makes the case extra interesting is that the plaintiff apparently cited fictional cases in his arguments, perhaps relying on artificial intelligence tools that led him astray.
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TransUnion Report Finds Collections Industry Betting Big on AI and Digital Channels
- The debt collection industry is entering 2025 facing a mix of rising consumer delinquencies, growing account volumes, and accelerated investment in technology, according to TransUnion’s latest Debt Collection Industry Report. The survey finds that agencies, creditors, debt buyers, and law firms are preparing for higher volumes of distressed accounts while shifting more resources toward automation, digital communication channels, and self service tools to improve efficiency and manage costs.
- More details here
Household Debt Hits $18.8 Trillion as Student Loan Defaults Accelerate
- Roughly one million federal student loan borrowers slid into default in late 2025, according to data released last week by the Federal Reserve Bank of New York, as total household debt climbed to $18.8 trillion. The latest Quarterly Report on Household Debt and Credit shows that nearly 10% of student loan balances are now more than 90 days past due, even as overall household debt rose by $191 billion in the fourth quarter of 2025. For banks, agencies, fintechs, and collection law firms, the data points to mounting pressure within the student loan portfolio at the same time consumer balance sheets are carrying higher overall leverage.
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Kaufman Dolowich Welcomes Seven Attorneys from McGlinchey Stafford
- Kaufman Dolowich, a leading national law firm, today announced that seven attorneys from McGlinchey Stafford led by Partner Chantel Wonder and including three additional partners, two of counsel, and one associate have joined the firm. The group’s capabilities include consumer financial services, employment defense, hospitality, and insurance coverage, enhancing Kaufman Dolowich’s national platform and expanding its depth across key strategic practice areas. Most of the team will be based in Florida, dual-officing between the firm’s Fort Lauderdale and Orlando offices, with two attorneys working remotely.
- More details here
Compliance Digest – February 16
- Get insights from eight legal experts — Joann Needleman, Tomio Narita, Akeela White, Chad Echols, Anastasia Caton, Stephanie Strickler, Skip Kohlmyer, and Jeff Turner – on recent legal rulings and lawsuits, to make sure you know how to update your policies and procedures and any changes that need to be made to your operation.
- More details here
- This series is sponsored by Frost Echols
WORTH NOTING: Consumers are far more likely to buy something recommended by a chatbot than a fellow human, according to new research … How the economy is impacting where consumers eat when they dine out … Financial performance of rural hospitals is improving … How the government is finding money to protect the acting director of the Consumer Financial Protection Bureau … The seven mistakes that most CEOs make and how to avoid them … The airports you choose may be impacting how much you’re spending on flights … It’s not you — this has been a crazy winter for everyone … The do’s and don’ts of writing a good resume.
Music Monday, part I
Music Monday, part II
The Daily Digest is sponsored by TCN. Today, contact centers need to do more with less. TCN’s cloud-based predictive dialing tools and services help clients to leverage the most sophisticated inbound, outbound, and blended calling technologies available. TCN’s award-winning platform offers multiple features to assist in compliance while improving performance with no hardware, no monthly minimums, or maintenance fees. Call 866-745-1900 or visit tcn.com today.
