Use Cases Collections & ArrearsMortgage ServicingRedress & ClaimsCustomer Service
Use Case

Collections & Arrears

Empathetic, compliant recovery at scale. Handle 80% of cases autonomously while maintaining the human touch for vulnerable customers.

The Challenge

The impossible trade-off.

Traditional collections face a fundamental dilemma that conventional automation cannot solve.

Aggressive Recovery

Push hard for payments and you'll hit recovery targets — but damage customer relationships, increase complaints, and create regulatory risk under FCA Consumer Duty.

  • Customer churn increases
  • Complaints and regulatory attention rise
  • Brand reputation suffers
  • Long-term customer value destroyed

Customer-Focused Approach

Prioritise relationships and compliance, and recovery rates suffer while costs increase to handle the complexity and volume properly.

  • Lower recovery rates
  • Higher operational costs per case
  • Resource constraints force prioritisation
  • Sample-based compliance (5–10% coverage)

The Resource Constraint Problem

With limited human resources, organisations are forced into difficult choices — and the result is inconsistent customer experience, missed recovery opportunities, and compliance risk. Not because of bad strategy, but because there simply aren't enough hours in the day.

  • Prioritise by balance: Only high-value accounts get attention — smaller balances drift
  • Prioritise by DPD: Focus on severely delinquent, miss early intervention
  • Use cheaper channels: 70% SMS/email, only 30% personal contact
  • Accept coverage gaps: Some customers never receive appropriate attention

The economics are compelling.

Typical 40-agent operation
£2.1M
per year
Agentic AI operation
£650k
per year

£1.5M annual saving — plus unlimited scalability without headcount.

What to Expect

Measurable outcomes.

Based on industry benchmarks. Individual results vary depending on portfolio composition and existing processes.

+13–20%
Recovery Rate Improvement
+7–10%
Customer Retention Increase
−70%
Operational Cost Reduction
100%
Compliance Coverage

System in Action

How it works in practice.

Real scenarios showing how the agentic system reasons, acts, and escalates — with compliance built into every step.

Scenario 1: Accidental Missed Payment

Scenario: Sarah M., 4-year customer, £8,000 credit limit, perfect payment history (48 consecutive on-time payments). Large recent transaction (£2,800 — house move). Payment of £156 now 3 days overdue, first miss ever.
Assessment
Analysis: "High-value customer with perfect history. Large recent transaction suggests life event. Miss occurring soon after large spend indicates cash flow timing, not inability to pay."
Conclusion: 95% confidence ACCIDENTAL — HIGH attrition risk if treated aggressively.
Decision
"Accidental segment + high-value customer = allow grace period. Contacting immediately may annoy a customer who simply forgot."
Decision: Wait 3 days (total 6 days overdue), then send single SMS — friendly tone.
Action
"Hi Sarah, just a friendly reminder that your payment of £156 was due on the 20th. You can pay quickly via the app or by calling us. If there's a reason you couldn't pay, we're here to help."
Compliance Review
✓ Required regulatory disclosures included  ·  ✓ Tone appropriate for segment  ·  ✓ No vulnerability indicators
Decision: APPROVED
Outcome: Customer reminded appropriately without being alienated. Compare to traditional: automated threatening text Day 1 → annoyed customer → complaint risk → potential account closure.

Scenario 2: Vulnerable Customer

Scenario: John D., 18-month customer, £2,000 credit limit, second missed payment. Previous customer service call mentioned "health issues". £89 payment now 7 days overdue.
Assessment
⚠ Vulnerability flag raised from previous interaction. Analysis: "Previous issue resolved — willing but potentially unable to pay. Health mention indicates possible temporary hardship."
Conclusion: 70% confidence TEMPORARY HARDSHIP + VULNERABILITY DETECTED.
Decision
"Vulnerability flag means we must not apply pressure. FCA guidance requires allowing customer to make first contact in their own time."
Decision: Send supportive email with callback option. No follow-up for 14 days. Must include payment holiday info and free debt advice referral.
Action
"Hi John, we noticed your payment of £89 hasn't arrived yet. We understand life can be challenging. If you're facing difficulties, we have several support options including payment plans, temporary payment holidays, and free debt advice. There's no pressure — just reach out when you're ready."
Compliance Review
✓ Vulnerability detected — enhanced protections applied  ·  ✓ Support options clearly stated  ·  ✓ No pressure language
Decision: APPROVED with enhanced monitoring. Human notification: flagged for potential escalation.
Outcome: Customer harm prevented ✓  |  Vulnerability protections applied ✓  |  Good outcome achieved ✓  |  Audit trail complete ✓

Scenario 3: Persistent Non-Payer

Scenario: Personal loan customer, 4 months arrears, no response to 8 previous contact attempts across channels.
System Response
After initial contact attempts and payment arrangement offers receive no response, agents escalate to firmer messaging about consequences. Still no response.
Escalation
Recognises this pattern requires human specialist intervention. Compiles complete case history and routes to collections team for formal action.
Compliance Review
Confirms all required steps taken before escalation. Full audit trail provided — no time wasted by specialist on system investigation.
Outcome: Human specialist receives a fully documented case ready for legal proceedings if necessary. Every required step evidenced.

Team background (includes)

Vanquis Bank  ·  Capital One  ·  Barclaycard  ·  Chetwood Bank  ·  Intrum  ·  Arrow Global  ·  KotoCard

Get Started

Ready to transform your collections operation?

Start with a focused 6–8 week POC using your real data and workflows. Low investment, real output, evidence to decide.