To date, the digital communications channel with the highest uptake has been email. In TransUnion\u2019s 2024 Debt Collection Industry Report<\/a>, 74% of respondents reported using email for communication with debtors, up 6% from the previous year. Yet, both physical mail (87%) and telephone calls (86%) remained more widely used, and it\u2019s unclear how broadly and how effectively email is being utilized, even within agencies where it is a common tool. <\/p>\n\n\n\n This post won\u2019t dig too deep into the details of transitioning to a digital-first collections process. <\/p>\n\n\n\n Instead, we\u2019ll dive deep into the factors complicating or limiting digital adoption that were hot topics of conversation on the floor at RMAi \u2014 as well as which technologies companies are prioritizing. <\/p>\n\n\n\n There\u2019s a pretty strong consensus in the industry that digital debt collection will be a good thing, but getting there \u2014 in the face of some fairly significant headwinds \u2014 is proving to be a challenge. Each agency\u2019s own situation is different, but some of the recurring issues we heard included: <\/p>\n\n\n\n One additional key factor is agency size, which is a strong predictor of technology use. Transunion\u2019s report breaks this out: 71% of agencies with fewer than 20 full-time employees (FTE) use email, while that figure is 91% for agencies with 100 or more FTE. The difference is even more pronounced with other technologies, with small agencies adopting them at a fraction of larger competitors\u2019 rates. <\/p>\n\n\n\n <\/p>\n<\/div><\/div>\n\n\n\n Even as agencies grapple with implementing email, and some question its continued efficacy<\/a>, other technologies are seeing a growth in interest. Small agencies were heavily represented at RMAi\u2019s breakout sessions, and our team reported that SMS text messaging<\/strong> and ringless voicemail<\/strong> (voicemail drop) are the two technologies that delegates were most interested in. Hearing from attendees about which technologies they\u2019re interested in and which ones aren\u2019t even on their radar was especially interesting for our RMAi team. Paradoxically, ringless voicemail \u2013 despite all the interest we heard \u2013 also falls into this category: Everyone seemed to know about it, but surprisingly few were actually implementing it. A couple of other things we considered exciting, but which earned a collective shrug as far as awareness and implementation, were chatbots\/digital assistants (on websites or phone systems) and social media communications. <\/p>\n\n\n\n As a tech company, perhaps it\u2019s easier for us to be enthused about promising technologies, but both of those tools hold a lot of promise that\u2019s currently being overlooked.<\/p>\n\n\n\n Both the uncertainty and the rapid pace of change in the regulatory environment (and the corresponding compliance burden for agencies of all sizes) have become a major focus for the industry as a whole. <\/p>\n\n\n\n Sessions at the conference and feedback from our team\u2019s interactions with delegates centered around a few major points. <\/p>\n\n\n\n Medical debt in the United States accounts for approximately $220 billion, according to a 2024 analysis by the Peterson-KFF Health System Tracker,<\/a> and affects some 20 million Americans. That represents a substantial opportunity for business in the debt industry, but in practice, many agencies at the conference are approaching with caution. <\/p>\n\n\n\n The former administration\u2019s regulatory changes<\/a>, barring many forms of medical debt from being reported to credit agencies, removed a significant negative incentive for consumers to prioritize medical debt. Ambiguity about what is and isn\u2019t covered under the new rules is a deterrent: if a medically necessary purchase is made on a credit card, is it medical debt or consumer debt? What about medical-adjacent purchases, such as adaptive renovations for persons with chronic medical conditions? <\/p>\n\n\n\n These rules may be rolled back by the new administration<\/a>, which hypothetically favors the accounts receivable industry, but uncertainty around the regulatory environment is not conducive to forward planning. <\/p>\n\n\n\n This brings us to a second major point that was widely discussed at the conference. The new administration has targeted the CFPB itself for a significant reduction in staffing and a rollback of its regulatory powers. The agency, as currently constituted, through significant funding cuts by the Executive Branch, may in effect cease to exist. <\/p>\n\n\n\n Superficially, this might be seen as a \u201cwin\u201d for the industry, but it was clear from conversations we took part in at the conference that many see it as a potential headache. The fear is that the work of collections will ultimately become more difficult, not less, if federal regulation is supplanted by a patchwork of state and local legislation. This will be especially impactful in the case of agencies operating across multiple regions or jurisdictions. <\/p>\n\n\n\n New rules implemented by New York City<\/a> were the subject of a lot of discussion by attendees at the conference, and they may provide a look at how lower jurisdictions might seize the initiative in the absence of strong federal regulations. The legislation, slated to take effect in October of 2025, makes a number of changes, including: <\/p>\n\n\n\n Businesses operating in New York argue that this represents a big increase in the difficulty and administrative overhead required to collect on money they\u2019re owed and a drag on their profitability. For the industry as a whole, it\u2019s less about the new rule\u2019s specific details and more about the idea of individual municipalities regulating collections activity. <\/p>\n\n\n\n New York City is admittedly an outlier, albeit with a population and economic activities larger than many states. But the idea of needing to manage compliance all the way down to the municipal level can be frustrating and adds to the uncertainty facing the industry. <\/p>\n\n\n\n At first glance, the 2025 RMAi conference\u2019s two key underlying themes \u2013 the industry\u2019s continued shift toward digital-first collections and the growing compliance challenges as a result of regulatory changes \u2013 have relatively little in common. But in truth, both point to the increasingly important role of technology in debt collections. <\/p>\n\n\n\n The evidence is clear that a digital-first collections process improves profitability and ROI. In uncertain times, the innate tendency is to draw back on investment, but selective technology upgrades can make companies more resilient and better able to cope with whatever turbulence may come their way. <\/p>\n\n\n\n Investing in a nimbler intelligence product, such as Spokeo for Business, can help ease the transition to a digital-first collections process for many agencies. Spokeo integrates both regulated and open-source data not typically available in credit headers into a single, intuitive search database that makes contacting debtors\u2014while staying compliant\u2014easier than ever before. <\/p>\n\n\n\n To learn more about how Spokeo for Business can improve your agency\u2019s operations, see a demo of the product, or arrange a no-cost trial, please reach out to our team using the contact information on our Collections and Skip Tracing<\/a> page. <\/p>\n\n\n\n Sources<\/p>\n\n\n\n McKinsey Company: The Customer Mandate to Digitize Collections Strategies<\/a><\/p>\n\n\n\n TransUnion: 2024 Debt Collection Industry Report<\/a><\/p>\n\n\n\n Peterson-KFF Health System Tracker: The Burden of Medical Debt<\/a><\/p>\n\n\n\n Consumer Financial Protection Bureau: Fast Facts: Consumer Reporting of Medical Information Proposed Rule<\/a><\/p>\n\n\n\n American Association of People with Disabilities: Explaining Medical Debt and the CFPB Rule: What\u2019s Going on With Medical Debt, and How Does it Affect People With Disabilities<\/a><\/p>\n\n\n\nHeadwinds Inhibiting Technological Change <\/h3>\n\n\n\n
\n
![\"many](\"https:\/\/www.spokeo.com\/pathfinder\/wp-content\/uploads\/2025\/06\/brett-jordan-LPZy4da9aRo-unsplash-1024x768.jpg\")
Where is the Industry Trending? <\/h3>\n\n\n\n
That\u2019s pretty consistent with the chatter we\u2019ve been hearing all year. Online consumer portals (for payment and information purposes) are getting some traction, especially at larger agencies. Interest in text messaging was definitely more universal, perhaps because it\u2019s more accessible for smaller agencies. <\/p>\n\n\n\nWhich Technologies are Getting Overlooked? <\/h3>\n\n\n\n
![\"collections](\"https:\/\/www.spokeo.com\/pathfinder\/wp-content\/uploads\/2025\/06\/elijah-mears-E94nZORR5qc-unsplash-1024x683.jpg\")
<\/figure>\n\n\n\n2. Uncertainty About the Regulatory Environment is Top-of-Mind<\/h2>\n\n\n\n
Medical Debt Continues to Be a Difficult Niche<\/h3>\n\n\n\n
Uncertainty Around the Regulatory Environment<\/h3>\n\n\n\n
New York City\u2019s New Regulations<\/h3>\n\n\n\n
\n
The Evolving Role of Technology in Collections<\/h2>\n\n\n\n