The Collection Challenge

Debt collection has long been one of the most challenging aspects of financial services. Collekt AI's clients—banks, credit unions, and collection agencies—were struggling with multiple pain points in their collection operations.

Traditional call center agents were expensive, inconsistent in their approach, and required extensive training to maintain compliance with FDCPA and TCPA regulations. Even with proper training, human error led to compliance risks that could result in costly lawsuits. Additionally, aggressive collection tactics damaged customer relationships and brand reputation.

With contact rates averaging only 40-50% and payment promise rates hovering around 35%, the return on investment for collection operations was minimal. Scaling to handle larger portfolios meant hiring more agents, which compounded costs and compliance risks.

The Oration Solution

Collekt AI partnered with Oration to improve debt collection through intelligent, empathetic AI voice agents. These agents engage debtors in natural, respectful conversations—understanding their financial situations, offering flexible payment options, and maintaining perfect compliance with all regulations.

Oration's AI agents were fine tuned for the nuances of debt collection:

• Empathetic Conversations: The agents recognize financial stress and adapt their tone accordingly, treating debtors with dignity while working toward resolution
• Built-in Compliance: Every call automatically adheres to FDCPA, TCPA, and state-specific regulations with built-in guardrails that prevent violations
• Payment Flexibility: Agents can discuss and arrange payment plans on the spot, reducing friction and increasing promise-to-pay rates
• Sentiment Analysis: Real-time analysis detects debtor stress or frustration, allowing the AI to adjust its approach or escalate to a human agent when needed

With Oration, Collekt AI was able to:

• Scale collection efforts without increasing headcount or compliance risk
• Maintain consistent, compliant communication across every single call
• Improve recovery rates through empathetic, personalized conversations
• Reduce operational costs dramatically while increasing effectiveness

Results

The impact was immediate and substantial:

• 58% payment promise rate—significantly outperforming the industry average of 35-40%
• 73% right party contact rate—up from 45% with traditional methods
• 85% cost reduction—massive savings compared to traditional call center operations
• 100% compliance—zero FDCPA or TCPA violations across 50,000+ monthly calls
• Higher customer satisfaction—debtors report feeling respected and heard, protecting brand reputation

Looking Ahead

Building on this success, Collekt AI is expanding its partnership with Oration to include multilingual capabilities to serve debtors across multiple geographies more effectively.