Author: Matt Kulik

3 Ways to Reduce Friction in the Debt Collection Process

By on September 4th, 2026 in Customer Experience, Machine Learning
A consumers working on a phone and computer.

In debt collection, the more friction consumers run into when trying to make a repayment, the less likely they are to follow through. For a long time, the debt collection industry has faced engagement hurdles like not using digital channels or forcing consumers to call in directly to make a payment. However, when a collector makes the payment process easier and more approachable, it’s common for their recovery rates to improve. 

The process of reducing consumer friction might seem daunting at first, but we’ve curated three strategies your business can put into practice to get started. Ready to take a closer look? 

1. Practice Positive Debt Collection Messaging and Tone  

Many traditional debt collection messages often rely on penalties or aggression to spark action. For many consumers, this creates a level of emotional friction that they want to avoid. In general, people are more likely to follow through with a repayment if they see a direct benefit. For example, let’s say that a consumer is behind on their credit card account and compare these two approaches: 

  • Traditional messaging: Your balance is past due, please make a payment or a late fee will be applied and we’ll take further action. 
  • Positive messaging: We want to help you pay your balance and get your account back in good standing today. 

Instead of leading with a consequence that puts extra pressure on the consumer, empathetic and collaborative messaging makes it easier to take the next step. The positive message also clearly communicates a benefit, which can help reduce friction and the initial burst of apprehension consumers feel when they first see a debt collection message. 

2. Offer Self-Service Through an Omnichannel Debt Collection Strategy 

More consumers than ever before prefer to be contacted through digital channels. For collectors that are only using direct mail or phone calls, this means they could be creating additional friction to the process. When you reach out to a consumer on their preferred channel, they’re much more likely to engage with your message. Plus, digital channels have the ability to include links or buttons to a self-service portal. 

By having a button or link consumers can click to submit payment on their terms, your collection strategy is reducing friction. Self-service takes less steps than following instructions on a letter or going through an interaction with a human agent on the phone. 

It’s also important for omnichannel collection messages and self-service options to be quick. The goal is to require the least amount of “actions” for a consumer to take. The user experience should be simple and self-service buttons/links should be clear and easy to see. A simple payment process also gives consumers confidence that their payments will be processed without issues. 

Self-service also gives consumers the ability to make a payment at any time without adding unneeded friction with human agents since consumers can easily see all their information and take action with ease. It’s one of the reasons why roughly 98% of TrueAccord customers resolve their debts through self-service. 

3. More Payment Options Matter for Consumers

For a consumer, few things cause more friction than trying to make a payment and realizing their preferred payment method isn’t accepted. It’s important for collectors (especially those using digital channels) to offer more payment options to consumers. It’s recommended to at least give consumers the option to pay by ACH and debit cards. Your business should also look into allowing digital wallets like Apple Pay and Google Pay as an option as well. Not only are more consumers preferring this method of payment, digital wallets often auto fill billing information when they’re used adding convenience.

Since mobile devices and digital wallets go-hand-in-hand, your payment experience should be optimized for mobile. Even though it takes some extra effort ensuring the user experience is seamless, an issue-free mobile experience is a must for engaging modern consumers. 

TrueAccord Specializes in Low Friction & High Performance 

TrueAccord is a premier omnichannel debt collection agency that puts consumers first by offering a low-friction experience that gets results. With full-lifecycle recovery solutions, our team helps your business put consumers first so that every dollar recovered makes a difference. Learn more about how you can unlock scalable and reliable performance recovery by contacting us today. 

What Collectors Need to Know About Consumer Behaviors

By on August 28th, 2026 in Machine Learning, Product and Technology, User Experience
A consumer making a debt repayment on their computer.

Humans are constantly changing their behaviors based on what’s going on around them. As consumers, many of us have an internal set of rules that businesses need to follow to earn and retain our loyalty. Today, businesses have to work harder for people to take action – the days of guaranteed consumer engagement are gone. 

Nowhere is more true than in debt collection. To succeed today, collectors have to consider changes in consumer behavior and prove authenticity to improve recovery rates. What are some of the biggest trends in consumer behavior that debt collection strategies need to address? That’s exactly what we’re going to explore below. 

Personalization is King for Debt Collection Strategies

Consumers today expect a hyper-personalized experience from any financial brand they interact with. At a baseline, this means having a firm understanding of each consumer’s challenges and preferences. Collectors need to approach consumers as an empathetic friend who knows them to prompt more engagement. 

A common misconception about personalization is that it should only be in the copy. However, there’s more to it than that. Personalization extends to the channel of the message, so debt collectors are increasingly leveraging an omnichannel approach to send a message through each consumer’s preferred communication channel. In fact, 46% of consumers expect brands to communicate through their preferred channels. And an omnichannel approach can increase recoveries by as much as 40%. 

Another useful and sometimes forgotten form of personalization is providing consumers with the option to self-serve. In our experience, the majority of consumers (>90% of TrueAccord consumers) prefer to resolve their financial obligations on their own. This empowers them to get around feelings of stress (and even shame) speaking with a human agent, while allowing them to make a repayment on their own time.

Prioritize Creating a Frictionless Experience with Consumers 

Whether your business is sending a debt collection email, text message, or calling, the process needs to be easy for consumers. For most accounts, it’s important to limit the number of steps required for someone to take action. As an example, some collectors send a letter or email where the consumer might have to take information and feed it into a website, create an account, or log in prior to completing their payment.

Any hiccup or frustration a consumer experiences through the repayment process can cause them to disengage. So, a longer journey will likely lower repayment rates with consumers. Consumers today have a low tolerance for complicated processes, especially when it comes to financial matters. It’s best practice for every digital communication to have a clear next step that’s easy for consumers to recognize. Emails and text messages are convenient as they can provide a direct link to a payment portal. 

Another crucial factor is making sure any information consumers need is not hidden. For example, let’s say a consumer needs their account number to make a repayment. The consumer shouldn’t have to go through multiple steps to get that information. That account number should be included right in the message to make the repayment process as frictionless as possible. 

Consumers Prefer Financial Wellness & Collaboration

Over the last few years, consumers overwhelmingly prefer to work with businesses that are invested in their financial wellness. For debt collectors, that means trading in more traditional strategies for empathy. Collectors need to lean into being collaborative with their customers to ease the emotional burden of repayment. Financial stress is often hard to deal with, and a consumer who feels supported is more likely to make a repayment. 

The act of reciprocity is a big trend in consumer behavior, with most consumers hoping for a business to extend the olive branch first. However, even with this aspiration, the rise of financial scams has made consumers more hesitant to take the first collaborative step. True personalization can help cut through some unease, so it is important to be easy to work with from first contact. This often means giving the consumer options on how to move forward. In fact, it’s best practice to offer a self-service portal and a contact number as repayment options.

Consumer Engagement is TrueAccord’s Specialty 

TrueAccord is a premier debt collection agency that leverages AI technology to deliver a consumer-centric experience. With first and third-party collection services, we take the guesswork out of collections to help consumers find a way forward. If your business is interested in high-performance recovery with consumer-first results, we’re here to help. Contact our team today to learn more.

Empathy is Essential – But Don’t Fake It

By on August 5th, 2026 in Customer Experience, Industry Insights
A person holding a paper heart against their chest.

Many businesses are putting more resources into being empathetic with customers. Not only is it a cornerstone consumer trend, empathy can be a strong competitive advantage when done right. The debt collection industry is no exception, authentic empathy has shown to improve recovery rates while retaining brand loyalty. 

As empathy has become more essential, there have been more instances of it being manufactured or faked. In this blog post, we’re going to break down the cost of faking empathy and what authentic understanding looks like in debt collection.

What Does Fake Empathy Look Like?

To fully understand the concept of faking empathy, let’s walk through a relatable example. Have you ever ordered a coffee and gotten a personalized handwritten note from the barista on the cup? It makes many people feel special, and it was a key element of Starbucks’ empathy-driven experience in its early days. 

Fast-forward to 2025, and the coffee giant made it a policy to write a note for every customer. The only way to do this fast enough was to write more generic messages on all the cups in advance. The magic of those personalized notes disappeared because the personalization and authenticity were gone. There was customer backlash on social media, with many people commenting how the chain lost some of its authentic charm. It’s a lesson that shows when empathy is forced or faked, it often doesn’t have the same impact. 

The same principle holds true when applied to debt collection. If the extent of the empathy being shown feels forced, many consumers can see through it. And one of the most common places where fake empathy occurs is with AI chatbots.

The Cost of Fake Empathy and AI Chatbots

AI chatbots continue to grow in popularity to address consumer issues in the debt collection industry. The problem is that some AI chatbots practice what’s called “scripted empathy”. It’s when a chatbot uses a more generic statement like “I understand that’s difficult” as a blanket response for consumer issues. 

A University of South Florida study found that these fake empathy responses from AI chatbots actually worsen consumer reactions. In fact, the same study found that 73% of consumers will disengage with a brand that fakes empathy. For debt collectors, that means fewer recoveries and potentially losing consumers for good. This research highlights that consumer expectations for empathy being practiced by businesses is high, and isn’t something that can be forced. 

The core theme isn’t that AI chatbots can’t be effective, but that empathy that makes a positive impact takes investing time to gain a better understanding of consumers. A good place to start is working towards understanding each consumer’s unique preferences. And there are other ways AI technology can be used to accomplish that goal in debt collection outside of chatbots.

How TrueAccord Uses AI in Debt Collection to Offer Empathy

TrueAccord puts empathy in the center of all debt collection efforts, some of which is built invisibly into the process instead of explicitly empathetic in content. With a patented machine learning engine, TrueAccord gains a better understanding of each individual consumer’s unique preferences. By using millions of data points as a reference, the technology finds the right message, channel and time for contacting each consumer. Empathy isn’t just saying the right words, it can be meeting consumers where they are most comfortable, too. 

Another way TrueAccord provides an empathetic, consumer-first experience is by offering a self-service portal. Roughly 98% of TrueAccord customers resolve their debt through self-service, bypassing financial discussions that make many people stressed or nervous. More consumers than ever before prefer self-service options to resolve financial obligations and want to be contacted through digital channels. By better understanding and catering to the preferences of each consumer, TrueAccord creates a consumer-centric experience that helps people find the best low friction way forward.

The Future of Empathy in Debt Collection

Some businesses make the mistake of putting all their empathy efforts into tools that don’t offer personalized experiences. Empathy can be infused into more aspects of the debt collection industry other than front-facing tools like chatbots. It’s likely that as empathy becomes even more important to consumers, businesses will need to offer more personalization. For the debt collection industry, it will likely mean offering more convenient ways to view important account information and streamlining the repayment process.

TrueAccord Brings Authentic Empathy to Debt Collection

TrueAccord is a premier collections agency that offers high recovery performance with a consumer-centric approach. Our first-party and third-party collection services help businesses put consumers first, so that every repayment makes a difference. Contact our team today to learn more about how we strike the right balance between high-performance and empathy.

Who Do Consumers Trust More? Human or AI Agents in Debt Collection

By on July 15th, 2026 in Industry Insights, Machine Learning, Product and Technology
A close up of a person and robot arm shaking hands.

As AI agents grow in popularity within the debt collection industry, there is a core question being asked by businesses – who do consumers trust more, AI or human agents? There’s an assumption that consumers will always prefer a human since they provide an innate understanding that AI technology can’t replicate. 

When we look at the data and consumer trends, the answer is more complicated and nuanced. We’re going to take a closer look at the dynamic between consumers trying to resolve financial obligations with humans and AI agents for debt collection. 

Consumer Trust in Debt Collection Often Comes Down to Resolutions

For consumers, the main goal is usually less frustration and a more effective resolution to their financial obligation. Whether it’s an AI or human agent that delivers the frictionless experience, most consumers don’t really have a preference between the two. 

There are plenty of automated systems and AI processes in everyday life that often don’t work as intended. So, consumers want digital and AI experiences to work without any hiccups. The question of trust comes in when there’s challenges in the experience like AI not understanding consumer answers, the process taking too long and more. 

The AI Agent Trust Gap with Consumers

The Parloa Consumer Patience Index report highlights that customer service automation and AI agents can cause trust issues with consumers. According to the study, roughly 30.4% of consumers have zero trust in AI’s ability to handle complex cases. What’s even more staggering is that 93% of the survey respondents said that legacy Interactive Voice Response (IVR) systems fail too often before their issue is resolved. 

Modern AI agents have to regain the trust lost by these outdated AI technology tools. It’s created a consumer trust gap that the debt collection industry should be aware of: 

  • The 3-Minute Time Limit: 55% of consumers will disconnect with an automated or AI system within three minutes if their problem isn’t solved. 
  • Frustration is Common: 61% of consumers admitted to yelling at an AI agent to get routed to a human agent faster. 
  • The Time Trade-Off: Roughly 66% of consumers would rather wait longer for a human agent because they believe AI agents aren’t as accurate. 

What This Means for AI Agents Used for Debt Collection

On the surface it might seem like consumers are against AI agents, but that isn’t the case. The same Parloa survey reported that 85% of consumers would prefer to use AI agents if it solved their problems reliably. Consumers want AI agents to be effective in debt collection because it’s a great way to avoid feelings of judgement or shame that often come with talking to another person. 

AI technology will continue to evolve and get better at solving consumer problems. In the meantime, there are a few key strategies that businesses can use to help bridge this consumer trust gap in debt collection: 

  • Easy Human Handoffs: When your business is using AI agents, make it easy for consumers to be transferred to a human agent. Ideally, the AI technology will detect rising consumer frustration through keywords or tone of voice and pull in a human agent. 
  • Give Consumers Self-Service Options: AI and human agents aren’t needed for every problem. Give consumers the ability to self-serve with payment portals attached to debt collection email and text messages. 
  • Practice AI Transparency: It’s recommended to disclose to consumers when they’re talking with an AI agent. By disclosing this up front, it reduces the risk of consumers becoming frustrating by finding out later on in the conversation. 

Which Agents Do Consumers Trust More 

Right now, trust in human agents is higher compared to AI counterparts. However, that gap is closing rapidly as technology evolves. In the debt collection industry, consumers want to trust AI agents, but businesses need to prove that the process can go smoothly. Companies like TrueAccord have shown that empathy and understanding don’t always have to come from a human voice. 

AI and human agents can both be used to offer a frictionless and consumer-centric experience for debt collection. Digital-first collection strategies empower consumers to interact when, where and how they want. The true debate isn’t about whether or not an AI or human agent is the best for consumers – the best collection strategies leverage both to provide a better experience. 

High-Performance Recovery That Puts Consumers First

Is your business looking to put a more consumer-centric emphasis into your recovery strategy? TrueAccord is a premier omnichannel debt collection agency that offers first and third-party services that put consumers first. We take the guesswork out of collections with a patented machine learning engine that optimizes engagement with each consumer.

Contact our team today to learn more about how business can increase recovery performance and consumer trust. 

Top 5 Debt Collection Trends to Watch Through the End of 2026

By on July 2nd, 2026 in Industry Insights, Machine Learning
The blog title set in front of a man holding a tablet.

2026 is shaping up to be a defining year for debt collection strategies. Consumer expectations have changed, economic pressures continue to weigh on the economy and AI technology is more essential than ever before. Some of the most successful recovery strategies proactively adjust their approach based on important trends like these. 

To help give your business a clearer picture of how to approach debt collection for the rest of 2026, we’ve compiled five trends to keep in mind.

1. Inflation Rates Are Rising

According to the recent Consumer Price Index data from May, the annual inflation rate rose to 4.2%, continuing its upward trend over the first half of the year. This increase was mainly fueled by higher energy costs that put more financial pressure on consumers. With food, housing and medical costs also rising, essentials being more expensive leaves less room in household budgets for other financial obligations. As the year continues on, experts expect that these costs will continue to go up. 

This means debt collection strategies should be looking at how to grab attention, be authentic and meet consumer expectations. Outreach that doesn’t align with these pillars is far less likely to be prioritized by consumers facing financial challenges.

2. Personalized Engagement is Key

There was a time when the standard for debt collection was a one-size-fits all approach,  simply increasing the volume of communications in order to get better results. This traditional method is even less likely to get results in the back half of 2026. Personalization is a powerful debt collection trend this year and will likely pick up even more steam. Consumers today want businesses to meet them where they are with the right time, channel and message. It’s important for digital debt collection strategies to be flexible and adjust based on how each consumer responds. 

AI technology can help businesses uncover the outreach methods each individual consumer is most likely to engage with. For example, a consumer who is in the early stages of delinquency might prefer more messages to keep the obligation top of mind.   

3. Speed is Part of Empathy in Digital Debt Collection

Empathy has been well established to be a core part of effective modern collections. However, it’s easy to forget about how much an efficient, accurate and speedy process contributes to extending empathy to consumers. One of the biggest debt collection trends in 2026 is making the repayment process more hassle-free. Self-service options are going to be even more valuable since they let busy consumers make repayments on their own schedule. 

Think of speed as its own lever in digital debt collection. There are consumers who want a slower experience and might need more space before making a repayment. AI technology can adapt to these nuances by adjusting message frequency, using a more empathetic tone or even handing off to a human agent. The goal should be to make the debt collection process less emotionally taxing for consumers.

4. Collections Compliance Should Be Proactive

Collections regulations are constantly evolving. One core market trend in debt collection is that federal regulations around consumer privacy and AI have been falling behind state action in 2026. With bellwether states like New York and Colorado implementing new debt collection and AI regulations, more states are likely to follow suit this year. 

Does your first- and/or third- party digital debt collection strategy have the capability to ensure compliance control that’s backed by legal experts? As the patchwork of state regulations becomes more complex, debt collection outreach needs to be flexible and adapt to changes in case law and regulations.

5. Improving Consumer Contact Data

Most modern digital debt collection strategies use a multichannel approach to reach consumers. By having the ability to reach out across different channels such as email & SMS, businesses meet more consumer preferences and increase the opportunity for meaningful engagement. Even better, look for an omnichannel strategy that links and optimizes channel selection based on consumer preferences. For these approaches to work, collection strategies need accurate consumer contact information across multiple channels. 

This is a big priority and key debt collection trend for the rest of 2026. Try not to wait until a consumer account falls behind to verify or fix contact data. By communicating to consumers that your business protects their data, you can build trust and make it easier to acquire verified information.

How Is Your Digital Debt Collection Performing in 2026?

TrueAccord is the premier digital debt collection agency that leverages AI technology to offer consumers an empathy-driven experience. If your recovery strategy is looking for extra support to end the year on a strong note, our team is here to help. Connect with us today to learn more about our full-lifecycle recovery solutions.  

What Does the Right Debt Collection Message Look Like?

By on May 27th, 2026 in Customer Experience, Product and Technology, User Experience
I person using a smartphone set behind the blog title.

There’s a question that almost every recovery strategy has to address: What does the right debt collection message look like? The answer isn’t straightforward. Every customer has unique preferences when it comes to the communication channel, the tone of the message and more that businesses should try to honor in order to engage them effectively. The real answer is, the right debt collection message looks different for each individual. 

With the countless variations in consumer preferences, how are debt collection strategies supposed to find the right message? We’re here to answer that question and provide some helpful steps businesses can take to improve their recovery strategy.

The Right Message Starts with Personalization

Many traditional debt collection communications, in the interest of efficiency at scale, speak to every consumer the same way. There’s no change in tone or sentiment found in the message, and the only personalized piece is the account details. That approach is no longer enough for today’s consumers who expect businesses to go the extra mile and honor their preferences. So, how can debt collection strategies meet this expectation? 

An omnichannel approach offers collection strategies the flexibility to send messages through the channel each consumer prefers. The ability to send emails and text messages makes your business better equipped to meet consumers where they are. It’s also important to have messages with different tones. For example one email template could focus on being upfront and transparent in the messaging which could appeal to consumers who prefer businesses that are direct and fact-driven. 

AI technology can also help businesses add personalization to debt collection messages and other communications to build rapport and approachability. AI agents can be trained to pick up on unique consumer nuances. As an example, one of TrueAccord’s AI-generated responses signed off an email with “may the force be with you”, since the consumer it was speaking to had a Star Wars themed signature.

To Find the Right Message, You Need Options

For digital communication channels, it’s important to have a variety of content templates to use. Not only does this help your recovery strategy honor more consumer preferences, but it also allows more flexibility to optimize recoveries. TrueAccord, for example, has hundreds of email and SMS templates that business partners can choose from. In this library, there’s a variety of templates that are made to address different stages of the collections lifecycle with different messaging approaches. 

There are a few aspects that make TrueAccord’s approach to sending the right message unique. The first is in the TrueAccord content team that works to create and refine content templates, adjust subject lines, and test new approaches to match consumer preferences. The second is that TrueAccord uses a patented machine learning engine called HeartBeat that works through millions of data points to select the right message for each individual account.    

Debt collection messages shouldn’t take a one-size-fits-all approach. The core of an empathetic and human-centric approach is doing the work to understand the consumer before reaching out. This goes beyond the words in the messages being sent. The right debt collection message is also sent at the right time and through the right channel, to help drive engagement without aggression.

Debt Collection Messages Need Self-Service Options

Oftentimes, the right debt collection message has a self-service option that allows consumers to handle their financial obligations without talking to a human. When a debt is owed, it’s common for people to have feelings of shame, anxiety or judgement about the situation. These feelings often escalate when it needs to be discussed with another person to be resolved. Self-service options help cut through that barrier and put consumers in control. 

In fact, roughly 90% of TrueAccord customers resolve their debts through self-service without talking to a human. The right message should have the option to use an intuitive digital portal that makes the repayment process more convenient. As consumer preferences continue to overwhelmingly favor digital communication channels, self-service options are a great way to engage with consumers who no longer want to pick up the phone.

Compliance – The Unsung Hero of Collection Messages

No matter what type of content is being sent to a consumer, the right debt collection message needs reliable compliance measures supporting it. Digital debt collection communications need a system that can keep up with the rapidly changing regulatory landscape and case law.

Legal experts should be weighing in to help ensure the content in the debt collection messages being sent don’t break any rules or open up the business to risk. TrueAccord has compliance informed by legal experts and secured by code, with compliance firewall technology built within the system to ensure federal and state compliance requirements are being met.

Send Debt Collection Messages That Put Consumers First

TrueAccord is the premier omnichannel debt collection agency that uses AI technology to create a consumer-friendly experience and higher performance. With full lifecycle recovery solutions, the TrueAccord team can help your business find the right message with a human-centric approach. Contact our team today to get started.

How Collection Strategies Can Navigate Consumer “Ghosting”

By on April 30th, 2026 in Customer Experience, Machine Learning
The blog title with a ghost that's on the phone.

The modern debt collection industry is faced with a unique challenge that’s hard to pin down. Consumers are “ghosting” debt collection phone calls more than ever before. In fact, the answer rates for unknown or unrecognized calls are under 15%, and call screening tools have become mainstream. We’re in an era of “consumer avoidance,” where collection strategies need to shift from prioritizing high-volume calling to digital channels. 

Anytime a consumer “ghosts” your business, a repayment becomes less likely. If you want to build a collection strategy that minimizes vanishing consumers, keep reading to discover tips to help improve engagement and recovery rates.

The Cost of Hesitation for Debt Collection Strategies

In most cases, phone calls are no longer a viable primary (or exclusive) tool for effective debt recovery. The “Cost of Hesitation” is at an all-time high with consumers. It’s the idea that when faced with communications from unknown sources, most people will default to blocking or ignoring them. This is especially true with calls since it’s common to find the notion of talking to a stranger over the phone as stressful or awkward. Plus, the rise of robocalls and financial scams has pushed “ghosting” into a reflex. 

It’s estimated that roughly 75% of consumers use some type of call screening software to block unwanted communications preemptively. This reinforces current trends that say consumers want a frictionless digital experience that gives them the power to engage with financial obligations on their own terms. Some collection strategies have adopted sending empathetic “warm-up” messages through digital channels that provide a clear next step to meet those expectations. To cut through feelings of uncertainty, emails or text messages should include a piece of personal information or account information to increase consumer confidence in its authenticity.

Channel Preference Optimization is Key

One way to interpret consumer “ghosting” is that it’s a product of using a collection strategy that doesn’t reach out through a preferred communication channel. A recent TransUnion survey found that consumers are 40% more likely to engage when a message is sent through a preferred channel. Since more consumers prefer digital channels, debt collection strategies should consider moving to an omnichannel approach. An omnichannel debt collection strategy gives your business more opportunities to connect with consumers through channels they engage with. 

To make this approach more effective, machine learning can analyze engagement data to find the best channel option for each individual account. By making the effort to reach out through a preferred channel, consumers are less likely to “ghost” your messages, and more likely trust the information that’s provided. By adding these elements together, collection strategies become more consumer-centric and create a low-pressure environment to help foster more repayments.  

Why Messaging is Essential in Debt Collection

When someone is faced with aggression or feelings of shame, “ghosting” is a natural response. If a debt collection message or experience feels like being scolded, there usually isn’t a high chance of success. It’s important for debt collection strategies to be transparent with consumers and present options instead of consequences. 

One of the easiest ways to put this idea into practice is with your debt collection messaging. For example, a message saying “payment is due immediately”, puts added pressure on consumers, and increases the chance of “ghosting”. While a message stating “you have options to resolve your balance” is more likely to foster engagement. 

Businesses that want to reduce consumer “ghosting” in debt collection should consider introducing more empathy into their messaging. Every debt collection message is an opportunity to acknowledge what that consumer is going through. Part of this can be achieved by having approved content templates with different tones. If you’re using emails for recoveries, it can help to have a variety of messages that are empathetic,  light-hearted, personalized based on engagement data, and more. 

Each consumer has preferred messaging they’re more likely to connect with. By having more approved content options, your recovery strategy is better prepared to engage consumers. Plus, the right AI tools can analyze data to help find the best message and tone for each individual account.

What’s the Link Between Ghosting and Collections Compliance?

Traditional debt collection strategies often use increased message frequency to try and combat consumer “ghosting.” But as states pass regulations that further limit the number of messages a debt collector can send to a consumer beyond Regulation F, there may be fewer opportunities to get consumers to take action and make a repayment. However, machine learning can create a personalized journey for each consumer within specified compliance guidelines, and keeps optimizing to find the best time, message, and channel to improve performance. 

While there are set time guidelines that certain collection messages have to follow, many consumers have what are called “quiet windows”. When a business respects consumer quiet windows the “ghosting” rate drops. Even though quiet windows aren’t established collection compliance rules, there are benefits for respecting them. In fact, data from the 2025 ACA International Benchmarking report found that messages outside of consumer quiet windows have three times the engagement rate.

TrueAccord Turns Consumer Ghosting Into Resolutions

TrueAccord is a premier omnichannel debt collection agency that leverages patented AI to deliver better results with a process that puts consumers first. Ready to join the dozens of industry leaders who use TrueAccord to collect more? Talk to our team today to learn more.

Why Personalization Matters in Debt Collection

By on March 10th, 2026 in Machine Learning, Product and Technology
A debt collection professional working at a computer.

Imagine if there were a streaming service that only had one show to watch? Some customers may be happy, but it wouldn’t appeal to most due to not addressing consumer preferences. While debt collection strategies and streaming apps don’t share many similarities, there is an important connection – personalization often delivers better results. 

If you’re wondering how to improve recovery rates, personalizing collection communications by honoring preferences is a good place to start. In this blog post, we’re going to highlight how to take a more consumer-centric approach to your debt collection strategies.

Break Away from One-Size-Fits-All

Traditional debt collection strategies tend to exclusively use outbound calling and/or physical mail to reach out to consumers. There are two core issues with this approach. First, consumers often prefer to be contacted through digital channels. Second, the cost of call-to-collect and direct mail strategies continues to rise. So if your strategies do not include digital, then your tactics are more expensive and have a lower likelihood of recovery. 

When a business invests in a one-size-fits-all approach, it’s leaving repayments on the table. By having multiple channels in your collection strategies, you are in a better position to connect with consumers. According to McKinsey data, initiating contact through a consumer’s preferred channel can lead to a 10% increase in payments.

Remove Spam Concerns

Consumers are increasingly weary about communications that are not aligned with their expectations, which may give them a reason not to respond. For example, if a consumer prefers text messages, calling them is far less likely to work. By contrast, a text message that outlines their financial obligation that directly links to a self-service portal is likely to improve the recovery rate in this instance. 

Personalization in debt collection is all about meeting consumers where they are. Debt collection strategies that favor “integration” over “interruption” tend to have higher performance. By aligning your debt collection communications with a consumer’s established behavior, you’re embracing a higher level of empathy through convenience. The process of honoring consumer preferences helps show that your business values their time and preferences. 

Improve Customer Relationships

It’s common for consumers to only owe a debt temporarily, however many businesses like banks and lenders want to retain customers. A debt collection strategy that doesn’t honor consumer preferences will likely feel impersonal, which runs the risk of deteriorating a customer relationship. A personalized approach that reaches out through the right channel, at the right time and with the right message helps preserve the relationship a consumer has with your brand. 

In some cases, improving the consumer experience leads to recovery rates following suit. Every consumer has a preferred communication channel and experience they’re looking for. For example, many consumers prefer to make repayments without ever interacting with a human. This is why roughly 98% of delinquent consumers serviced by TrueAccord resolve their debt on their own through our self-service portal.

Tailor Communications At Scale with Machine Learning

How can a business uncover the preferred channel, the best time and content for each consumer? The answer is machine learning. Machine learning algorithms can analyze past and current consumer behavior to personalize the collection experience at the account level across any portfolio of accounts.

TrueAccord has a patented machine learning algorithm called Heartbeat that has been used to upgrade debt collection strategies for years. Heartbeat works around the clock to be there whenever a consumer is ready to take the next step. Unlike other AI tools, Heartbeat reaches out to every account, and never stops working to find the best communication, channel, and message time for each consumer. 

Heartbeat is trained on millions of consumer engagement data points to craft a communication strategy for each account. If that strategy doesn’t work, it learns and adjusts and keeps trying until a resolution is reached. Unlike traditional collection strategies, this approach takes into account the personal preferences of every consumer it engages with, and results speak for themselves. Within the first nine months of using a personalized debt collection strategy with TrueAccord, a Fintech client was able to collect $500,000 with 95% of those consumers using self-service options.

*If you’re interested in seeing how a SaaS solution could help your internal team personalize digital debt collection communications at scale, explore our sister company Retain.

Deliver Personalization at Scale with TrueAccord

TrueAccord takes a consumer-centric approach to debt collection by leveraging machine learning to personalize the experience for every account. If your business wants to achieve better recovery results while prioritizing a consumer-friendly experience, TrueAccord can help. Connect with our team today to learn how more personalization could be woven into your collection strategy.

Is the Best Debt Collector an Algorithm? 

By on February 20th, 2026 in Industry Insights, Machine Learning, Product and Technology
The blog title set in front of a robot waving.

There are quite a few sitcom episodes where one of the main characters is competing against technology. Whether it’s selling more paper than a website, or automating IT support, the human element in these shows always prevails. In the debt recovery industry, machine learning algorithms have stepped up to challenge humans for the title of best collector. 

At scale, algorithms have many innate advantages for debt collection over human agents. Let’s take a look at how this competition would shake out, the argument for why machine learning algorithms are the best debt collectors and how it stacks up to other technology like chatbots. 

The Benefits of Machine Learning and Algorithms for Debt Collections

One of the core reasons why machine learning algorithms can be considered “the best collector” is because they can process large datasets faster and more efficiently than humans. Algorithms can analyze data of past consumer behavior, learn the nuances of individual accounts, and adjust strategies to improve the collection approach over time. By comparison, it would take a team of humans countless hours to reach the same level of analysis and insight, let alone making the required adjustments at scale.

When data is leveraged to offer personalization at scale, every interaction with a consumer is optimized for engagement. For example, an algorithm could send an email to a consumer first. If that person doesn’t respond, the technology could try a new content template, subject line or even try sending a text instead. The speed at which algorithms can process data allows debt collection strategies to evolve to meet consumer preferences with greater accuracy.

*Curious to see how your internal collections strategy could offer personalization at scale for digital channels? Take a look at our sister company Retain and learn more about white-label debt collection software.

Deployment Speed and Compliance Risk Differences

Human collectors take significant time and resources to train. They often have to go through weeks of onboarding and need to shadow more experienced collectors before reaching out to consumers. An algorithm can often be integrated into existing collection strategies faster to make a lasting meaningful impact. Algorithms solely focus on analyzing data and behavior to optimize collections. It’s technology that has no emotional biases or “off” days that happen to every human being. 

Machine learning algorithms help enable code-based compliance. It helps ensure that all regulatory requirements for debt collection are being met with the ability to run real-time updates for any new rules and case law. This technology eliminates the “human error” factor in debt collection compliance, which reduces risk for businesses across their recovery strategy. 

When a “Human Touch” is Needed in Debt Collection

While machine learning algorithms can automate digital communications and optimize engagement, there are situations where human collectors have an advantage. Consumers with larger debt balances are more likely to prefer a human collector who can work through a more complicated situation with empathy. Even though consumer preferences are shifting more towards digital communications and self-service portals, some consumers will only talk to other people. This fact is part of the reason why it’s important to have an omnichannel collections strategy to help ensure all types of consumer preferences can be honored.

Algorithms vs. Chatbots for Debt Collection

In the debt collection industry, there have been more companies utilizing chatbots in their recovery strategy. The most common application is when a consumer visits the website, an option appears that lets that person talk with a chatbot. However, this form of self-service has some drawbacks that make it less valuable than machine learning algorithms that operate at the heart of the strategy. 

If a chatbot is powered by AI, there’s a risk of hallucinations occurring. When discussing debts, inaccurate information from an AI chatbot could lead to an increase in disputes and expose the business to legal risks. The other option is decision tree chatbots that could have trouble resolving more nuanced questions from consumers. 

The effectiveness of chatbots for debt collection has one big issue: in most cases, the consumer has to visit a company’s website to engage with it. Once a consumer goes to a collector’s website, they’ve already taken a big step towards engagement. Debt collection is often about finding the most effective ways to get a consumer’s attention and prompt action. Chatbots still require the outreach to drive consumers to a website.

AI Voice is Poised to Become a New Challenger

AI voice technology has made huge strides recently. AI voices have the ability to sound human with different tones, speech inflections and more. Even when the use of an AI voice is disclosed, the realism it can now achieve helps consumers get past some hesitancy of speaking to it. In the future, it’s likely that we’ll see more voice AI integrated into omnichannel collection strategies. While complex cases would be handled by human agents, voice AI could handle the more routine calls. This alone could significantly improve the effectiveness and efficiency of collection strategies.

Get High-Performance Recovery Powered by Machine Learning

TrueAccord has a patented machine learning engine called “Heartbeat” that creates a personalized journey for every consumer. If you’re ready to learn more about why many industry experts believe that an algorithm is the best collector, we’re here to help. Contact us today to explore TrueAccord’s full-lifecycle recovery solutions.

TrueAccord Expands Full-Lifecycle Support  with New First-Party Collection Services

By on February 11th, 2026 in Industry Insights
The blog title in front of a green and blue background.

TrueAccord is expanding its industry-leading recovery business to include a dedicated first-party collection service, designed to act as a seamless extension of clients’ brands. With this addition in the early-stage delinquency space, TrueAccord now offers a complete full-lifecycle recovery solution that bridges the gap between initial re-engagement and late-stage recoveries.

This first-party service, powered by TrueAccord’s subsidiary Sentry Credit, Inc., focuses on consumer engagement and retention rather than just liquidation. It utilizes a “HumAIn” approach to collections, supporting seasoned agents with advanced AI to deliver a brand-aware experience that feels like a natural extension of an internal team. 

“By expanding our services to address the full recovery lifecycle, we are bridging the gap between early-stage re-engagement and late-stage resolution,” said TrueAccord CEO Mark Ravanesi. “Our approach combines the precision of our machine learning engine with the empathy and experience of our professional collection team. Whether a consumer is just falling past due or is deep in the recovery funnel, they receive a convenient, digital-first experience that prioritizes retention and financial health while delivering the high-performance results our clients expect.” 

With a focus on positive consumer interactions and industry-leading recovery, this first-party expansion offers clients a seamless way to deliver their customers a consistent, empathetic experience from the very first delinquency communication. By leveraging the patented AI technology, TrueAccord eliminates guesswork and allows collections experts to focus on helping consumers find a sustainable way forward. The service is built to be both flexible and highly scalable, working directly from clients’ AR systems or its own CRM.

For more information about TrueAccord’s services, visit www.trueaccord.com or contact sales@trueaccord.com.