As we close out 2025, let’s reflect on what we predicted last year, see how things actually played out, and prepare for what’s coming in 2026.   

This year has been transformative for the debt collection industry, marked by sweeping regulatory changes, rapid technological adoption, and evolving consumer expectations. 

2025’s Reality: CFPB Scaled Back While States Stepped In 

At the end of 2024, I made some bold predictions for 2025. Here’s how they stacked up in reality:  

Prediction: Federal regulatory environment would relax 

Reality: The Consumer Financial Protection Bureau (CFPB) didn’t just relax, it took a major holiday this year, implementing a “sharp scalpel” approach.  The CFPB scaled back operations significantly and withdrew 67 guidance documents, signaling a clear deregulatory agenda. 

Prediction: CFPB Director Chopra would step down or be replaced by President Donald Trump 

Reality: President Trump fired Director Chopra February 1, 2025. A week later, White House Office of Management and Budget Director Russ Vought became the Acting Director of the CFPB. 

Prediction: DOGE Committee would persuade Trump to abolish the CFPB entirely or reduce the scope of its power 

Reality: The DOGE Committee vocalized their message to abolish or reduce the scope of the CFPB in February 2025. However, DOGE did not see its wish come true, as the CFPB is indeed intact, albeit working in a limited capacity this year. 

Prediction: State-level increase in consumer protection laws 

Reality: States dramatically increased their passage of consumer protection laws, including but not limited to debt collection, data privacy, AI, and more.   

 Prediction: Industry consolidation 

Reality: Rising compliance costs and tech investments drove consolidation of collection agencies, BPOs, and outsourcers. 

2025 in a Nutshell 

This year was all about the dramatic shift in regulatory dynamics. At the federal level, deregulation dominated the headlines. The CFPB rescinded dozens of rules and withdrew 67 of their regulatory guidance documents, two FCC commissioners stepped down, effectively freezing new policy, and the McLaughlin vs. McKesson case resulted in an outcome which changed the court’s reliance on precedence.  Meanwhile, states filled the gap, creating a patchwork of consumer protection laws for debt collection agencies to navigate. 

Trending Topics in 2025 

Throughout the year, no one can deny that AI and automation were at the forefront of every conversation. Vendors offered many AI tools, and agencies explored and implemented these tools at a rapid pace. While federal AI regulation remained quiet, states stepped up with privacy and AI laws; 19 states now have privacy laws, and a few, like California and Colorado, have enacted AI laws.   

As AI adoption soared, data privacy and robust cybersecurity systems became top of mind for organizations. Companies know they are accountable for what happens to the data utilized by AI, so strong data privacy policies and robust cybersecurity systems are essential.  

And let’s not forget the rise in adoption of digital and omnichannel communication to meet consumer preferences. Meeting consumer preferences while staying compliant and ethical has been a major focus.

Looking Ahead: 2026 Predictions 

As I think about these 2025 trends, here’s what we can expect next year: 

1. AI adoption will outpace regulatory frameworks, so compliance and privacy safeguards will be critical for organizations.
2. State-level complexity will deepen as more jurisdictions introduce consumer protection and AI governance laws. 
3. The CFPB will likely continue without a permanent director, operating in a limited capacity while funding reforms are under discussion. 

Interested in my thoughts on AI? Watch this Compliance Bytes video:

Conclusion

The regulatory landscape isn’t slowing down; it continues to become more complex.  Success in 2026 will depend on staying agile, adapting to new tech, and maintaining consumer trust. 

2026 and Beyond: How Velosidy Helps You Stay Ahead

So how do you prepare for what’s sure to be another year of deregulation and decentralization Finvi’s Velosidy platform is purpose-built to adapt to rapid changes within the ARM industry: 

• Flexible tools and regular upgrades allow users to quickly adapt to evolving regulations.   

• Built-in compliance guardrails meet industry regulations and can be easily adjusted to meet customer specifications.  

• Full transparency and auditability, so you can demonstrate compliance when it matters the most. 

Explore more compliance topics: 

Disclaimer: Finvi is a technology company and provides this post solely for general informational and marketing purposes. You should not rely on the content of this material for any other purpose or as specific guidance for your company. Finvi’s advice, services, tools, and products described herein do not guarantee compliance with any law or industry standard. You are ultimately responsible for your own company’s actions and compliance efforts. Because everyone’s situation is different, you must consult your own attorneys, accountants, and/or other advisors to obtain specific advice on your company’s compliance, legal, tax, regulatory and/or other business needs. Despite Finvi’s efforts to provide current and up-to-date information, you need to recognize that the information contained herein may become outdated quickly and may contain errors and/or other inaccuracies.