FDCPA Compliance and Attorney Ethics: What Creditors' Rights Lawyers Need to Know for 2026

Shareholder Amanda Yurechko recently presented a CLE at the National Business Institute in Cleveland, where she provided a practical, up-to-date look at the Fair Debt Collection Practices Act (FDCPA) and its impact on today’s creditors’ rights landscape, and on Ethics Updates in 2025. Her session covered FDCPA statutory background, communication rules, liability considerations, and emerging issues shaping both compliance and litigation strategy.
 

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As I told attendees during the presentation, the FDCPA continues to evolve in meaningful ways—particularly with the CFPB’s rulemaking under Regulation F and the increasing interplay between federal and state requirements. Understanding who qualifies as a debt collector and what constitutes a consumer debt remains foundational, yet these definitions still generate confusion in real-world scenarios. I walked through common gray areas, including mixed-use transactions, attorney involvement, and obligations that fall outside the Act altogether, before moving into the core communication standards that drive most compliance risk.

I also spent time on the notices, disclosures, and timing requirements that can make or break a collections strategy. From the Model Validation Notice to the “7-in-7” call rule and strict limits on third-party communication, the Act demands clarity, documentation, and consistency. Many attendees were surprised by how easily a routine call pattern or incorrectly structured message can trigger liability. We dug into statutory damages, actual damages, and the narrow—but important—bona fide error defense, as well as trending litigation areas such as medical debt and statute-of-limitations concerns.

Finally, I closed the session by touching on a timely issue for every practitioner: the ethical boundaries surrounding the use of artificial intelligence. With new standing orders in many courts limiting or prohibiting AI-generated filings—and recent national examples of sanctions—lawyers must be intentional, transparent, and technologically competent. The American Bar Association  issued guidance in 2024 under Formal Opinion 512 to help attorneys understand their ethical obligations in the changing AI landscape and the ethics rules AI will affect. I also shared guidance on confidentiality risks in online and virtual communications and the need to understand the privacy concerns surrounding the software and apps attorneys are using.  I also discussed that Ohio Rules dropped the requirement for “zealous representation” previously found in the Code, and Ohio Rule 1.3 encourages an attorney to be courteous to opposing counsel to the extent it does not prejudice their client’s position. These themes continue to shape not just FDCPA compliance, but the broader expectations placed on attorneys today.

I look forward to continuing the conversation as the regulatory environment evolves and as courts further refine what compliant, ethical collections practice looks like in 2026 and beyond.

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If you have any questions on this topic or would like to learn more about Weltman’s consumer and/or commercial collections solutions, feel free to connect with Amanda at any time.

This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.