Debt Recovery Hub
Welcome to our information hub for teams looking to automate decision tasks in debt recovery for consumer lending.
We focus on data-driven strategies and collections decisioning to manage and recover consumer debt: a decision table uses days past due and a risk band to set treatment and contact channel.
Here, you will find resources and information on automating different parts of the debt recovery process.
Whether you work in consumer lending today or are getting started, this hub gives you practical material to improve and streamline your debt recovery work through automation.
Collections Introduction
A Practical Guide to Collections Stages in Lending- Tools and Communication Strategies
- Key Metrics & Collections Efficiency
- Promise to Pay in Consumer Lending
Collection stages
- Segmented pre-collection activity
- What Collections Agents Should Avoid
- Analyzing a Sample Call Script
External recovery
- When to outsource debt collection
- Selling Debts in Consumer Finance
- Collections Process Costs for Portfolio Acquisition Guide
Decisioning and Analytics
Frequently asked questions
What delinquency cutoffs should I use to change collection treatment?
Use days past due as the starting signal, then combine it with balance, risk band, payment history and contactability. Broad bands such as 1 to 30, 31 to 60, 61 to 90 and over 90 days past due can be a useful starting point. Split a band only when different treatment produces a measurable difference, and check billing cycles and local contact rules before setting cutoffs.
How should collections teams set contact frequency and channel?
Set contact limits for each segment based on applicable rules, customer preferences and consent, vulnerability, and prior responses. Use the channel that has worked for similar customers, then track payments, complaints and opt-outs by channel and contact frequency. Reduce or change contact when repeated attempts bring no response or create complaints, rather than assuming more attempts will recover more debt.
How should we handle a promise to pay?
Record the promised amount and date, then check that the payment has posted before treating the promise as broken. Send a reminder near the agreed date if your contact policy allows it, and give payment processing time before escalating. Track kept and broken promises separately, since a promise is not a payment and missed posting can otherwise trigger unnecessary contact.
How should I test a new collections treatment?
Randomly assign eligible accounts to the current treatment or the proposed treatment, with groups balanced by delinquency age and risk band. Change one element at a time, such as channel or timing, and compare money collected after contact and vendor costs, along with kept promises, complaints and movement into deeper delinquency. Run the test through a full payment cycle and the relevant payment window.
When should I outsource collections rather than sell the debt?
Outsource when you want to retain ownership and control of collection policy but need another team to handle some or all contact. Consider a sale when upfront proceeds and transfer of future recovery risk are more valuable than keeping the debt, and compare the offer with expected net recoveries over time. Review consumer treatment, data access and oversight requirements before choosing either option.
