Law Firm Sued for Allegedly Cashing Post-Dated Payments Months Early
- A collection law firm is being accused of jumping the gun and violating the Fair Debt Collection Practices Act by cashing post-dated monthly payments for the rest of 2026 by a consumer who had entered into a stipulated judgment with the company.
- More details here
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Judge Recommends Denial of FCRA Injunction, Warns Plaintiffs Over AI-Generated Citation
- A Magistrate Court judge in Florida has denied a renewed motion for a preliminary injunction filed by the plaintiffs in a Fair Credit Reporting Act case while also admonishing them for using artificial intelligence to craft their argument. In her report, the judge concluded that private litigants cannot obtain injunctive relief under the FCRA and warned the plaintiffs that further reliance on fabricated legal citations could result in sanctions.
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Judge Recommends Partially Dismissing FDCPA Claims Over Settlement Letter
- A Magistrate Court judge in Texas has recommended partially granting a defendant’s motion to dismiss claims it violated the Fair Debt Collection Practices Act over the contents of a letter sent to the plaintiff offering to settle a debt for less than the full balance. The judge recommended dismissing several claims, including state law causes of action and one FDCPA theory, while allowing other FDCPA allegations tied to disclosures and alleged deception to proceed.
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PRA Group Doubles Down on Legal, Digital and Offshore as It Reshapes U.S. Platform
- PRA Group used its earnings call yesterday to send a clear message: its results are less about headline numbers and more about how the engine is being rebuilt. Management outlined a multi-year shift in channel mix, cost structure, underwriting discipline, and technology adoption that is materially changing how the company collects — particularly in the U.S.Overall, the company reported net income of $56 million for the final quarter of 2025, up from $18 million during the same period a year earlier.
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Block Slashes 40% of Workforce, Bets on AI to Build ‘Smaller, Faster’ Company
- Jack Dorsey’s Block is cutting more than 4,000 employees, nearly half its global workforce, and openly tying the move to artificial intelligence. The payments company behind Square, Cash App, and Afterpay will shrink from roughly 10,000 employees to just over 6,000. Investors responded immediately, sending the stock up more than 24% in after-hours trading. For executives in credit and collections who are actively exploring AI to improve efficiency, the scale and speed of this decision is likely to spark serious internal conversations.
- More details here
WORTH NOTING: Mortgage delinquency rates are remaining flat, according to one source, while increasing according to another … A report from TransUnion on the benefits of its branded calling product … More economic data painting a mixed and muddling picture for how consumers are faring … What experts want people who have federal student loans to know … The top banking cop at the Federal Reserve has some big plans in mind … The official announcement from New York City about its new debt collection rule … Can dreams help you solve your problems? … People across the country are being hit with soaring electricity bills.
Funny Friday, part I
Funny Friday, part II
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