Streamlining Debt Recovery for Hunter Warfield

Struggling with high debt recovery costs due to the legacy software and redundant processes, Hunter Warfield, an established debt collector in the U.S., contacted Armada Labs to solve these issues.
Problem Statement
More than half of US consumers feel under pressure when collectors call them. Unfortunately, collecting debts through calls is a primary method of most lenders, though it proves itself no longer efficient. Consumers simply start ignoring such calls, and lenders rest with the unpaid debt. Also, digital channels are more preferable among “tech-savvy” Millennials and Gen Z’s due to their speed and robustness.

We were worried that consumers would be concerned with an obligation to pay overtime instead of paying in full but in fact, it proved to be not the case. Similarly, our concern that email opt-in may be an issue proved to be wrong.

Things change when a digital-first lending solution by Armada Labs comes into play. Lending 2.0 is the name of the game here, so Hunter Warfield chose us to overcome its operational and compliance issues.
After researching the client’s market environment, we defined the following goals to reach:
  • Increase debt recovery from the total volume of unpaid debt;
  • Reduce the duration of the debt collection process itself;
  • Minimize debt collection costs;
  • Help to continuously demonstrate compliance;
  • Provide top-shelf user experience to consumers.
  • Global debt recovery market
  • Web application and services
  • Full debt recovery automation
5 Software Engineers
3 QA Specialists
2 Business Analysts
1 Project Manager
Technologies used
jQuery, HTML, CSS, .Net Framework 4.6, ASP.NET MVC, ASP.NET WebForms, MS SQL, KMS, SES, S3

Our Solution
Armada Labs’ Paydit removes the persistent pain points between borrowers and collectors by setting up a universal platform for collection agencies. This way, a consumer may access the platform from any device to revise their debt and consider available payment options. Using self-training Machine Learning models, Paydit calculates individual payment plans based on the real-time negotiation results and what the consumer can afford. For lenders, Paydit offers a flexible framework that they can adjust to their firms’ internal rules and local regulations and further improve the consumer’s experience with billing, payment scheduling, reporting, and other options adjusted to each particular consumer. If needed, consumers may renegotiate payments for lower settlements.
Finally, Paydit guarantees compliance through limitation of potential violations via human collectors. Unlike a human debt collector, the system never tricks or lies to the consumer or promises something. The built-in PCI compliance ensures better security and lesser possibility of violations.

Client Benefits
Over two years of close cooperation with Armada Labs, Hunter managed to digitize its consumer lending, with debt resolution and payment negotiation all performed online, stress-free for both parties. Additionally, Hunter’s collectors benefitted from fast-track compliance validation; Paydit had compliance requirements already embedded, so they didn’t have to deal with lengthy disclosures when contacting borrowers. Finally, Paydit delivered a fully automated client account so that lenders could delegate the typical client issues to the system while focusing on more complex tasks. To evaluate their performance, lenders can use a set of pre-built reports or request adding custom ones to cover additional aspects.

Paydit is a great non-threatening alternative and it allowed us to enhance our consumer service. Web portal 24/7 availability is a great addition to our process and offering a self-service debt settlement option gives the consumer a feeling of control of the situation. This means less stress for both.

Hunter’s Business Results
Besides the aforementioned key points, Paydit opened several strategic benefits to Hunter, primarily introducing new communication means with consumers. Next, it facilitated the whole collection process for lenders towards increased transparency and compliance. What’s more important, it made collections more cost-effective: collectors paid only for collected debts without any additional fees.

Milestones Reached
  • In the last three months working with Paydit, Hunter Warfield collected 7500+ payments;
  • Around 30% of Hunter’s clients admitted that they settled their debts faster online than with the previous “phone-call” collection method;
  • In total, Hunter managed to increase the volume of collected debt per month by almost 600%, which brought the firm over $33 million of additional revenue (or 75,679 successful payments).

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