The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the debt recovery software. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.
U.S. household debt has climbed to $18.39 trillion—up 29% from 2019—with 4.4% of that debt in some stage of delinquency. As more consumers experience financial strain, your financial institution is feeling the pressure too. The strain on resources is leading to collector shortages and high turnover, while the stress of the situation is damaging your accountholder relationships. Your being asked to do more with less while maintaining compliance, efficiency, and empathy.
You need a way to recover smarter, faster, and in a way that your consumers will respond. Or better yet, be more proactive in your collections strategy.
The Shift from Reactive to Proactive Collections
Most financial institutions have historically approached collections as a reactive process—waiting for an account to go past due, then chasing repayment through manual outreach and rigid workflows. The current environment demands a different approach: one that’s proactive, data-driven, and consumer-centric.
To stay ahead, FIs need collections strategies that:
- Predict delinquency risk before it happens
- Automate and streamline manual workflows
- Use data intelligence to prioritize the right accounts at the right time
That’s where MeridianLink Collect comes in.
MeridianLink® Collect is debt recovery software that helps financial institutions modernize and optimize their collections operations through automation, intelligence, and integration—so you can recover more, retain more accounts, and remain compliant every step of the way.
From advanced workflows to built-in compliance tools, our platform turns data into action. You gain visibility into collector performance, case outcomes, and outreach effectiveness—helping you continuously refine strategies and strengthen recovery results. One MeridianLink Collect customer grew its consumer loan portfolio by 40%, crediting their switch to our platform as a major driver of that growth.
Let’s take a closer look at how it all works.
MeridianLink Collect + MeridianLink Insight: Turning Data into Decisions
By integrating with MeridianLink® Insight, our data intelligence solution, Collect delivers real-time data from your core and lending systems—giving you a 360° view of your collections landscape and the intelligence to act fast.
What you can do:
- Instantly adjust strategies based on live portfolio data.
- View dashboards that track collector performance and recovery trends.
- Leverage insights that support broader lending and member engagement strategies.
The impact:
- Smarter prioritization and resource allocation, focusing efforts on accounts most likely to pay and improving ROI.
- Faster, more informed decisions through real-time visibility into delinquency trends.
- Enhanced compliance alignment with FDCPA, Reg F, and UDAAP requirements across all outreach efforts.
Propensity to Pay Index: Predictive Power in Every Interaction
MeridianLink’s Propensity to Pay Index (PPI) uses machine learning to score each delinquent account based on likelihood of repayment.
How it works:
- Access predictive repayment insights directly within the Collect interface.
- Automatically segment accounts based on repayment probability.
- Trigger custom workflows and automated outreach tailored to borrower behavior.
- Detect early signs of financial hardship before delinquency escalates.
The result:
- Proactive, personalized engagement with borrowers before issues worsen.
- Smarter segmentation that directs collectors toward high-opportunity cases.
- Greater efficiency and improved recovery outcomes with less manual effort.
Virtual Collector: Empowering Consumers Through Self-Service
Consumers expect digital convenience, especially when managing their finances. The Virtual Collector feature gives them just that.
Through a secure self-service portal, borrowers can:
- View account details
- Make payments or set up promises to pay
- Request callbacks without speaking to a collector
And, it’s fully integrated into your workflows, providing real-time updates via API while ensuring compliance with FDCPA, Reg F, and UDAAP.
Benefits for your institution:
- Frees staff from routine tasks, allowing them to focus on higher-value interactions.
- Extends collections capacity without increasing headcount.
- Delivers a seamless, 24/7 borrower experience across all devices, strengthening relationships and supporting timely repayment.
Bankruptcy, Fraud, and Litigation Queues: Built for Compliance
Sensitive accounts require careful handling. MeridianLink Collect helps institutions manage these complex cases with precision, consistency, and full regulatory confidence.
With this feature, you’ll be able to:
- Configure dedicated queues for specialized case types such as active bankruptcy, pending litigation, deceased consumers, and SCRA-protected accounts.
- Guide collectors through every required step using built-in, compliant workflows.
- Automate routing and enable real-time status updates to ensure sensitive cases are assigned correctly and tracked throughout resolution.
- Maintain audit-ready documentation that supports transparency, compliance reviews, and internal oversight.
The result:
- Consistent, compliant handling of every high-risk account.
- Reduced manual errors and faster case resolution.
- Streamlined oversight with clear visibility into sensitive workflows.
- Greater confidence in your institution’s ability to meet and exceed regulatory standards.
The Debt Landscape Has Changed—Has Your Recovery Strategy?
Delinquent debt is stressful for both your institution and your accountholders. With the right debt recovery software, it doesn’t have to be a pain point.
With MeridianLink Collect you can evolve your operation beyond reactive recovery. Stay ahead of delinquency, protect your relationships, and keep your institution ready for what’s next with MeridianLink.
