‍Client Profile: $2.4B AUM Credit Union | Mid-Market

The Industry Challenge: Credit unions are facing a perfect storm: rising operational costs, steady loan growth, and a macroeconomic environment pushing historically prime members into early-stage delinquency.

Our Client’s Challenge: A manual "dial-and-file" approach was failing to keep pace with rising 1-30 day delinquencies. The collections team was underwater with manual outreach, leading to high Roll Rates into the 60+ day buckets and increased Provision for Credit Losses.

The Status Quo: Legacy Process

• Methodology: Manual call lists generated from the Core, supplemented by static Notice of Intent letters.
• Engagement: Average of 1.2 touches per account per week.
• Friction: Members had to call back during credit union business hours to negotiate a Promise to Pay.‍
• Compliance: Relied on manual agent notes to track "7-in-7" Reg F call frequency.

The Challenger: Paydoff Automated Collections Platform
To modernize the collections lifecycle, progressive credit unions are deploying Paydoff to automate the noise of early-stage delinquency. Rather than replacing the human element, Paydoff acts as a digital safety net, utilizing core-agnostic file ingestion to trigger automated, highly personalized workflows.

• Omnichannel Nudge Sequences: Transitioning from easily ignored phone calls and delayed USPS mail to compliant, automated SMS and email sequences.
• Engagement: 4.5 system-driven touches per week with zero manual effort.
• Frictionless Self-Service: Empowering members with a secure, 24/7 digital resolution portal. Members can cure their account, establish a Promise to Pay (PTP), or set up a payment plan directly from their smartphone without ever speaking to an agent.‍
• Systemic Compliance: Hard-coding FDCPA, Regulation F, and TCPA guardrails into the outreach architecture to ensure frequency caps and time-zone rules are strictly and automatically enforced

The Aggregate Impact & Metrics:
By shifting the 1–30 day delinquency strategy from manual to automated digital resolution, the credit union utilizing Paydoff reported significant improvements across both balance sheet metrics and operational efficiency.

• +24% Increase in 30-Day Cure Rates: Engaging members on their preferred channels accelerates early-stage resolution before accounts roll into higher delinquency buckets.
• 65% Digital Resolution Rate: The majority of early-stage members resolve their balances via the Paydoff digital portal entirely via self-service, completely bypassing the call center.
• 40% Reduction in Inbound Call Volume: Eliminating the "I'm calling to make a payment" traffic frees up collections staff to negotiate complex, high-balance workouts.‍
• Zero IT Implementation Delays: By leveraging universal file ingestion rather than waiting for heavy API builds, credit unions achieve full deployment and first-value realization in weeks, not quarters.

Conclusion:

For credit unions, collections is not just about debt recovery; it is an extension of member service. By deploying Paydoff, institutions are insulating their collections teams from volume spikes, reducing Provision for Credit Losses, and providing members with a modern, dignified, and frictionless path back to financial health.