In This Update
President Trump proposed a one-year, 10% cap on credit card interest rates, though there is no clear legal authority for the President to impose such a limit. While hurdles exist to move such a plan forward, affordability concerns could keep the proposal in play. U.S. House Speaker Mike Johnson has said Congress should examine the proposal while cautioning about potential negative secondary effects. Several Democrats, including Senators Elizabeth Warren and Bernie Sanders, support interest rate caps and argue that current credit card rates are exploitative.
Last month, President Trump signed an executive order titled Ensuring a National Policy Framework for Artificial Intelligence, signaling a shift toward a unified federal approach to AI regulation. While the executive order does not preempt state laws outright, it authorizes federal agencies to counter state measures viewed as inconsistent with federal policy. Shortly after, Senator Marsha Blackburn released a section-by-section summary of the TRUMP AMERICA AI Act, which would codify the executive order and limit states’ ability to regulate AI.
The administration also announced it will resume wage garnishment for borrowers in default on federal student loans beginning January 7, 2026. Initial enforcement will target about 1,000 borrowers who have not made payments in more than a year, with expansion expected as total student loan debt exceeds $1.6 trillion and millions of borrowers remain in default or at risk of delinquency.
At the CFPB, a federal judge required the Bureau to formally request funding, resulting in a $145 million request last week. This amount is expected to fund operations through March and is significantly lower than funding levels requested under the prior administration. Separately, the D.C. Circuit Court of Appeals announced that it will hear a challenge to the administration’s efforts to restructure and scale back the agency, after a three-judge panel previously upheld those actions.
In addition, the Senate returned the nomination of Steven Levenbach for CFPB Director to the White House without a vote, effectively keeping Acting Director Russ Vought in place. Under the Vacancies Reform Act, he may continue serving in that role through August 1, 2026.
On the regulatory front, RMAI submitted comments to the FCC on proposed robocall rules, warning that several provisions would harm consumers and legitimate financial services companies. RMAI urged the FCC to retain the current 10-business-day opt-out processing window, preserve channel-specific consent choices, and include exemptions where caller ID requirements would conflict with federal or state privacy laws. RMAI also emphasized the need for neutral vetting standards so lawful, regulated businesses can continue delivering consumer communications.
Finally, last fall RMAI and other industry groups raised concerns with the FTC regarding identity theft reports and credit repair organizations, issues that were further discussed during RMAI’s meeting with the FTC in December. Last week, the FTC released new consumer education materials addressing these topics.
FTC Consumer Alert: Influencers are pushing this illegal trick to “fix” your credit report
RMAI is synonymous with our government advocacy initiatives – it is one of the pillars which our association has been built upon – fighting for the interests of our members. Our association has had an unparalleled level of success in amending and stopping harmful legislation.
A good measure of our success has come from the volunteer efforts of RMAI’s State Legislative Committee and the generosity of our members to the Legislative Fund which helps pay for our lobbying efforts. If you have an interest in volunteering in RMAI’s grassroots advocacy efforts, please contact RMAI General Counsel & Senior Director of Government Affairs David Reid at (916) 779-2492 or [email protected].
Here is a sample of bills we are actively monitoring/lobbying:
Indiana SB 197 – This bill would replace the existing 30x minimum wage garnishment exemption with a flat $600 weekly exemption. The new weekly exemption would be annually adjusted by the Consumer Price Index. [This bill would essentially increase the annual exemption by 175 percent – from $11,310 to $31,200. While RMAI would agree that an increase in the exemption is probably warranted, RMAI believes the increase is too dramatic. RMAI opposes the bill as it is currently drafted.]
Virginia HB 444 – This bill would enact the Uniform Law Commission’s (ULC) Uniform Consumer Debt Default Judgments Act, which aims to standardize the process for obtaining default judgments in consumer debt collection cases. It applies to unsecured consumer debts, secured consumer debts when seeking a money judgment, and deficiencies remaining after the disposition of secured property. The act mandates specific requirements for complaints in such cases, including detailed information about the consumer, the debt, and the plaintiff’s authority to collect it. [RMAI spent over three years as an observer on the ULC drafting committee to ensure the model act, if adopted by a state, worked for RMAI’s members. A portion of the model act was modeled on provisions contained in the RMAI Certification Program. RMAI is in support of its adoption.]
Virginia SB 189 – This bill would create a new prohibited practice related to consumer debt collection proceedings. Specifically, it requires that in any civil action or legal proceeding to collect or enforce a consumer debt, the attorney of record must provide the consumer with their full name and Virginia State Bar number, business address, direct telephone number and email address, and, if different, the direct contact information for the office or individual responsible for handling the consumer’s account. This information must be included in the initial pleading or any subsequent filing by the attorney. [RMAI is opposed to this bill. We feel the prohibitions are unnecessary. RMAI believes a better approach to reform would be Virginia HB 444.]
Washington SB 5720 – This bill would enact the Uniform Law Commission’s (ULC) Uniform Consumer Debt Default Judgments Act (UCDDJA), which aims to standardize the process for obtaining default judgments in consumer debt collection cases. It applies to unsecured consumer debts, secured consumer debts when seeking a money judgment, and deficiencies remaining after the disposition of secured property. The act mandates specific requirements for complaints in such cases, including detailed information about the consumer, the debt, and the plaintiff’s authority to collect it. The bill would also repeal the 2020 debt buyer statute and add specific requirements to UCDDJA for debt buyers that were contained in the 2020 law that did not contradict the act. [RMAI has been actively negotiating this bill for the past year. While RMAI would have preferred the model act as adopted by the ULC unedited, the bill does reflect most of the act. RMAI spent over three years as an observer on the ULC drafting committee to ensure the model act, if adopted by a state, worked for RMAI’s members. A portion of the model act was modeled on provisions contained in the RMAI Certification Program. RMAI is in support of its adoption.]
Seventh Circuit Finds Article III Standing Where Consumer Paid Under Threat
Milam v. Selene Fin., LP, No. 25-1208, 2025 U.S. App. LEXIS 33481 (7th Cir. Dec. 22, 2025)
A consumer fell behind on her mortgage payments and, when her mortgage payment was 47 days overdue, the mortgage servicer sent her a notice stating that if she did not cure the default within 35 days, her loan could be accelerated and foreclosure proceedings could begin. The consumer paid the overdue amount but then filed a lawsuit alleging violations of the Fair Debt Collection Practices Act and the Illinois Consumer Fraud and Deceptive Businesses Practices Act.
Specifically, the consumer alleged that because of federal regulations and the servicer’s own internal policies, the servicer would never accelerate or foreclose unless a loan was at least 120 days delinquent. Thus, she claimed the servicer was “threatening consequences on an invented and artificial timeline that [it] cannot and will not enforce,” and “the false scare often has the intended effect of spurring payment and amounts to an abusive collection practice.”
The servicer filed a motion to dismiss, arguing that as assignee of the original lender, it could rely on the provisions of the mortgage requiring “the lender and the borrower to provide each other with notice and a ‘reasonable period … to take corrective action’ before commencing most judicial actions.” The trial court granted the motion, holding that the consumer’s failure to provide such notice barred her claims, and the consumer appealed.
On appeal, the U.S. Court of Appeals for the Seventh Circuit first held that the consumer had established a concrete injury sufficient for Article III standing. The Court noted that “interest was not accruing on [the consumer’s] mortgage loan due to her late payment, so she avoided no added interest expense by paying before [the servicer] could legally force her hand.” Additionally, the consumer stated that by paying sooner than legally required, she had to borrow money for other necessary expenses and incurred overdraft fees.
The Court next considered whether the servicer was an assignee of the lender, and therefore able to rely on the mortgage agreement’s notice before suit provision. The Court acknowledged that the servicer clearly had authorization from the lender to collect mortgage payments. However, because the servicing agreement was not in the record, the Court could not “rule out the possibility that the lender . . . has merely delegated the performance of certain contractual duties to [the servicer].” The Court stated that the “case needs further analysis in the district court, informed not only by Illinois law, but also by [the servicer’s] servicing agreement.”
Accordingly, the ruling of the trial court was reversed and the matter remanded.
California Court of Appeal Reaffirms Concrete Injury Unnecessary in FDBPA, Rosenthal, and FDCPA State Court Actions
Sipin v. Velocity Invs., LLC, No. H052798, 2025 Cal. App. Unpub. LEXIS 7805 (Dec. 8, 2025)
A debt buyer brought a collection action against a consumer, and the consumer filed a cross-complaint alleging the debt buyer violated the California Fair Debt Buying Practices Act (“FDBPA”), the California Rosenthal Fair Debt Collection Practices Act (“Rosenthal Act”), and the Fair Debt Collection Practices Act (“FDCPA”). The debt buyer moved for summary judgement, arguing that the consumer could not show she suffered a concrete injury. The trial court granted the motion, and the consumer appealed.
The California Sixth District Court of Appeal began by noting that while this appeal was pending, the court decided two other relevant cases. In Chai v. Velocity Invs., LLC, 108 Cal. App. 5th 1030, 330 Cal. Rptr. 3d 11 (2025), the Court ruled that consumers who receive collection letters that violate statutory requirements can sue for damages under the FDBPA even if they cannot point to specific harm beyond the legal violation itself. The court explained that when the California legislature created the consumer protection law, it determined that the violation of a consumer’s statutory rights is itself sufficient injury to allow a lawsuit.
In Guracar v. Student Loan Sols., LLC, 111 Cal. App. 5th 330, 332 Cal. Rptr. 3d 742 (2025), the Court explained that “California courts are not subject to the restrictions that Article III imposes on federal judicial power, and, unlike the federal Constitution, the California Constitution has no case-or-controversy requirement. The California Legislature is therefore free to grant standing to sue in California courts absent concrete harm.” Thus, as in Chai, the Court held the FDBPA and Rosenthal Act do not require parties seeking statutory damages to demonstrate concrete harm. Regarding the FDCPA, the Court explained that “[a]s the Rosenthal Act incorporates portions of the FDCPA and states that its remedies are ‘cumulative’ and ‘in addition to any … remedies under any other provision of law,’ we infer that the Legislature intended to honor Congress’s intent and to allow consumers to bring claims directly under the FDCPA in California courts absent concrete harm.”
Based on its previous decisions, the Court of Appeal, in an unpublished opinion, reversed the judgment of the trial court.
As 2025 ended we have seen an increase in Bankruptcy filings nationally. The number of filings were up from 2024 over all chapters. There was a total of 565,769 filings last year. Looking at the major chapters, Chapter 7 cases totaled 332,700 up 15% from 2024, Chapter 13 cases totaled 200,100 up 6% from 2024 and Chapter 11 Cases totaled 10,300 up 1% from 2024. The increase in filings from the prior year showed a gain but again no tsunami of filings.
When we look at trends, we did see a substantial increase in December 2025 filings as compared to the prior year. Typically, December is a slower month. Total bankruptcy filings in December of 2025, according to Epiq AACER, increased 20% from the prior year to 45,935. Total Consumer bankruptcy filings in December increased 21% from 2024 with a 24% increase in Chapter 7 cases.
The bankruptcy working group will continue to report on the number of bankruptcy filings to help determine what the Bankruptcy playing filed will look like in 2026.
Donate an Item for RMAI’s 2026 Annual Conference Silent Auction
RMAI is continuing to accept donations for the 2026 Annual Conference Silent Auction, sponsored by Kino Financial Co., LLC, benefiting the RMAI Legislative Fund. We are seeking 50 fantastic and unique items for the auction catalog. If you have an item you would like to donate (if you need some inspiration, check out RMAI’s 2026 Silent Auction Wishlist), please complete this Donor Form. Or you can view the Silent Auction webpage to view the auction catalog, register as a bidder, and donate an item. We look forward to seeing some great donations and generous bidding!
Join Us at the Legislative Fund Donor Reception at Annual Conference
RMAI invites Legislative Fund donors to the annual Legislative Fund Donor Recognition Reception which will take place on Monday, February 9th from 5:00-6:00 pm. If you haven’t donated to the Legislative Fund and would like to attend the reception, make your donation online before the Annual Conference.
About the Legislative Fund
RMAI actively monitors and responds to state and federal measures affecting how our members do business. Your contributions to the Legislative Fund extend the reach of RMAI’s advocacy across the country where and when needed. Read more about the Legislative Fund. Click here to see a list of current contributors on the right-side bar.
UPCOMING WEBINARS
Register for our January 27th, Year in Review (Top 5 things to think about in 2026) webinar where our presenters will discuss the things you may have missed throughout the year that may be important for us to think about in 2026.
RECORDED WEBINARS
Recorded on December 18, 2025 you can register for Ready or Not: New AI Laws Arrive Jan 1, 2026 where our presenters will dissect the specific statutory and regulatory requirements as well as the critical steps your business must take to mitigate risk – not only with the newly existing laws in Colorado, Utah, and Texas but with the new California Privacy Protection Agency regulations, Attorney General settlements, and recent lawsuits against businesses related to AI technologies.
Click here for more information on our live and recorded educational webinars. Contact Shannon Parod-Tsui at [email protected] to find out more about sponsoring an RMAI webinar.
Congratulations to our new and renewed Certified Receivables Compliance Professionals (CRCP) & renewed Certified Receivables Businesses (CRB)!
CRCP NEW
Matthew Dion, Nexa Asset Acquisition
Melissa Gordon, Crown Asset Management
Rebekah Henderson, Velocity Portfolio Group
Nina Reilly, Velocity Portfolio Group
CRCP RENEWALS
Matthew Aylworth, Gordon, Aylworth, & Tami
Catherine Calko, Spring Oaks Capital
Dennis DiGesare, Huntington Debt Holdings
David Hameroff, Kino Financial
Seth Miller, CASA Receivables Management, LLC
Charles Riter, Emergent Business Group
Aristotle Sangalang, The Bureaus, Inc.
Amanda Schenck, LawGistic Partners
Zachary Schwartz, Debt Recovery Solutions
Ryan Wall, Full Circle Financial/The Axiom Group
David VanDerHeyden, VanDerHeyden Law Office
Nicole Whitcomb-Gelinas, Cohen & Cohen Law
CRB RENEWALS
Cascade Capital
Halsted Financial Services
Security Credit Services, LLC
Spring Oaks Capital
View all certified businesses and vendors.
View all certified individuals.
NEW YEAR, NEW BUSINESS CERTIFICATION
Start your 2026 off obtaining the Certified Receivables Business (CRB) or Certified Receivables Vendor (CRV) designation for your company (including debt buyers, collection agencies, collection law firms, vendors, brokers, process servers, defense law firms, and originating creditors).
Basic Requirements include:
- One individual from your company must maintain individual certification. Check out requirements here.
- Compliance with certification standards outlined in the Receivables Management Certification Program’s Governance Document.
- Appendix A (debt buyers, collection agencies, collection law firms)
- Appendix B (defense law firms, brokers, process servers, and all other vendors)
- Schedule a Pre-Certification Audit using one of our Authorized Audit Providers.
- Once the Pre-Certification Audit is approved, submit the CRB or CRV application to get approved for a three- year term.
- Complete a Full Compliance Audit at the midway point of your three-year certification term and then every three years thereafter.
Contact Shannon Parod-Tsui @ [email protected] or call 916-482-2590.
View our full list of certification resources.
Resolve to Renew Your RMAI Membership in 2026!
Thank you to those who have already renewed their membership for 2026! We look forward to another great year of education, advocacy, and networking! If you have not yet renewed your membership, we encourage you to do so, to continue to enjoy the benefits of being a part of RMAI – including discounted rates for Annual Conference!
To renew your membership, please login here. You can also contact RMAI at 916-482-2462 or [email protected] to pay by card over the phone.
Add an Additional Membership Representative to Your Membership | $100/year
Do you have an employee or coworker who is interested in joining a committee or is pursuing individual certification? If so, now is a great time for them to enroll as an Additional Membership Representative on your company’s membership! In addition to receiving information critical to certified individuals, Additional Membership Representatives also receive access to the following members-only communications and privileges:
- Member Directory
- Member Alerts
- RMAI Insights (Fall print and digital magazine)
- RMAI Digital Dispatch (Spring digital publication)
- RMAI Update (monthly e-newsletter)
- Eligibility to serve on RMAI Committees, Task Forces & Working Groups
Welcome New Members
DCS2 Asset Recovery | TX
Navient Solutions LLC | VA
NeuAnalytics | KS
Ragan & Ragan PC | GA
Security Finance Corporation of Spartanburg | SC
Williams & Fudge, Inc. | SC
For a complete list of RMAI members, login to check out the Member Directory.
2026 RMAI Annual Conference | February 9-12, 2026
LEGISLATIVE FUND CONTRIBUTORS JANUARY 1, 2025 – JANUARY 12, 2026
DIAMOND
Absolute Resolutions Corp.
Cavalry Investments, LLC
Crown Asset Management, LLC
Midland Credit Management
PRA Group, Inc.
Resurgent Holdings, LLC
Second Round, LP
Velocity Portfolio Group, Inc.
TITANIUM
Financial Recovery Services, Inc.
TRAKAmerica
PLATINUM
Blitt and Gaines, P.C.
Cascade365 Family of Companies
Garnet Capital Advisors, LLC
Halsted Financial Services, LLC
InvestiNet, LLC
Pharus Funding, LLC
Plaza Services
Rausch Sturm, LLP
Stenger & Stenger P.C.
T & I Enterprises, LLC
TrueAccord
GOLD
Klima, Peters & Daly, P.A.
SILVER
Andreu, Palma, Lavin & Solis, PLLC
D & A Services, LLC
DebtNext Software, LLC
Jefferson Capital Systems, LLC
National Credit Adjusters, LLC
Pressler, Felt and Warshaw, LLP
Security Credit Services, LLC
Velo Law Office
BRONZE
Central Portfolio Control, Inc
Couch Lambert
Stillman Law Office
Tromberg, Miller, Morris & Partners, PLLC
Troy Capital, LLC
BRASS
Advancial Federal Credit Union
Aldridge Pite Haan, LLP
American Coradius International/Leg Fund Donation
Arko Consulting LLC
ARM Compliance Business Solutions LLC
Balbec Capital
Bankrupt Debt Services
Basham & Scott, LLC
Bread Financial
Buffaloe & Vallejo, PLC
Call Center Services International
CASA Receivables Management, LLC
CBE Companies
CNG/Axcess Financial Services, Inc.
Collection Attorneys USA LLC
CompuMail Information Systems
Connect International
ConServe
Cornerstone Licensing Services
Credit Brokers LLC
Credit Control, LLC
Credit Corp Solutions, Inc.
Docketly
Exelero Corp.
FDR Alliance LLC
First Financial Asset Management, Inc. (FFAM 360)
Floatbot, Inc
FLOCK Specialty Finance
FMA Alliance, Ltd
FMS, Inc.
Genesis Recovery Services
Gordon, Aylworth & Tami, P.C.
Grassy Sprain Group, Inc
Guglielmo & Associates, PLLC
Invenio Financial, a Phillips & Cohen Associates Company
Kino Financial Co., LLC
Law Office of James R. Vaughan, P.C.
LexisNexis Risk Solutions
Mandarich Law Group LLP
Markoff Law LLC
MauriceWutscher LLP
Mountain Peak Law Group, PC
National Enterprise Systems, Inc.
National Loan Exchange, Inc.
National Recovery Associates, Inc.
NCB Management Services, Inc.
Nutun CX (PTY) LTD
Nuvei Technologies Inc.
Orbita Capital Group, LLC
PCI Group Inc.
Phin Solutions, LLC
Premier Bankcard
Premium Asset Recovery Corp (PARC)
Primeritus Financial Services, Inc.
Quality Acceptance
Remitter
RevSpring
Risk Strategies
Robinson Hoover & Fudge, PLLC
Roosen, Varchetti & Olivier, PLLC
SAM – Solutions for Account Management, Inc.
Scott & Associates, PC
Shepherd Outsourcing, LLC
Smith Debnam Narron Drake Saintsing & Myers, LLP
Stone, Higgs & Drexler
Suttell & Hammer
The Cadle Company
The Forwarders List of Attorneys
The Law Offices of Ronald S. Canter, LLC
The Moore Law Group
The Oakes Law Firm, LLC
Tobin & Marohn
VeriFacts, LLC.
Vertican Technologies, Inc.
Womble Bond Dickinson
World Credit Recovery, LLC
Yrefy, LLC
OTHER
Actuate Law, LLC
Allied Trustee Services
Avtal
Bedard Law Group, P.C.
Bounce AI, Inc
Butler & Associates, P.A.
CBK, Inc.
Cohen & Cohen Law, LLC
Consuegra & Duffy, PLLC
Converging Capital, LLC
Convoke, Inc.
Credit Management Corporation
D1AL
David Reid
Debt Sales Partners
First National Collection Bureau
FirstSource
ForgiveCo PBC Inc
Frost Echols LLC
Guru DNA Consulting, LLC
Hasson Law PC
Hudson Cook, LLP
Indiana Receivables, Inc.
Javitch Block, LLC
Kompato AI Inc.
McGlinchey Stafford, PLLC
Mendelson Firm, PLLC
National Recovery Solutions, LLC
Orion Capital Solutions, LLC
Pacific Capital
Poser Investments, Inc.
Pro Forma Inc
SCJ Commercial Financial Services
Shindler and Joyce Law Firm
Simplicated
Slate
Sonnek & Goldblatt, Ltd.
Superlative RM
The Bureaus, Inc.
Troutman Pepper Locke
Tsarouhis Law Group
UHG I LLC
Vargo & Janson, P.C.
Venable LLP