LND // For Lenders · Collections & arrears

Collections that reach borrowers before they miss, not after.

The best collections shop is the one that never has to collect. We build pre-arrears signal engines, Consumer Duty-safe outreach, forbearance and restructure workflows, and vulnerable-customer handling that FCA supervisors respect and roll rates rebel against.

BuyerHead of Collections · CRO · Head of Compliance← All lender capabilities
The problem

Why most collections engines are structurally too late.

A borrower who misses their first payment has almost always missed it in their head three weeks earlier. The signals are usually there in the servicing data — DD margin shrinking, hardship enquiries, portal login pattern changes, complaints, support-copilot conversation topics — long before the missed payment lands in a collections queue. Most lenders never look, or look manually, and end up chasing missed payments through cost-heavy dialler operations that Consumer Duty is increasingly hostile to.

The lenders that have shipped a pre-arrears brain have moved the roll-rate curve. First-arrears rate falls because borrowers get proactive forbearance offers before they miss. Roll-to-30, roll-to-60, roll-to-90 all shift. Recovery rates improve because when arrears do occur they occur later in the customer relationship and against a documented Consumer Duty-safe treatment path.

What good looks like

What good collections looks like in 2026.

A pre-arrears brain, a treatment engine and a vulnerable-customer layer, wired together. It should produce:

  • Pre-arrears risk scoring on every active loan, daily, with signal reasoning ('DD margin fell 60% last month, hardship enquiry in portal, complaint filed').
  • Proactive Consumer Duty-safe outreach — the borrower receives a forbearance option before they miss, in the channel they use, with a policy-scoped set of options.
  • FCA CONC 7-aligned treatment paths per arrears state, per product, per vulnerable-customer classification.
  • Vulnerable-customer signalling captured as a first-class artefact, feeding into every subsequent interaction.
  • A collections operator UI that ranks the day's queue by expected recovery contribution and Consumer Duty risk, not just days past due.
What KJ Capital ships

What KJ Capital ships.

A bespoke collections brain that sits above your LMS and your collections operator tools. We deliver:

  • A pre-arrears risk model, trained on your book, versioned and evaluated.
  • Consumer Duty-safe outreach generation behind a policy layer encoding CONC 7, financial-promotion, forbearance and vulnerable-customer rules.
  • Treatment paths per arrears state, mapped to your existing collections policy.
  • Vulnerable-customer detection and handling flows.
  • A collections operator UI with queue ranking and case-summary generation.
  • Full audit trail for every automated action, every recommendation and every human decision.
Typical outcomes

What lenders actually see after go-live.

First-arrears rate
-10 to -25%
Roll-to-60 rate
-15 to -30%
Collections cost per case
-30 to -50%
Vulnerable-customer capture rate
3–5×
Frequently asked

What buyers ask us about this build.

Q01How does this stay FCA CONC 7 compliant?+
The treatment paths are architected against CONC 7 explicitly, every automated action is policy-scoped, vulnerable-customer signals route to a human where required, and every interaction is audit-logged. The evidence base is stronger than manual collections, not weaker.
Q02Do you replace our collections vendor (Aryza, Exus, Latitude by Genesys)?+
Usually no. We sit above them, feeding pre-arrears signals in and reading operator outcomes back out. Some engagements do consolidate; that's a customer choice.
Q03How do you handle Consumer Duty vulnerable-customer requirements?+
Vulnerable-customer signalling is a first-class artefact captured on every interaction and propagated to every subsequent one. Treatment paths adapt automatically to vulnerable classifications.
Q04Can we integrate with debt-purchaser handover?+
Yes. Case-bundle export to debt purchasers is a standard workflow, with the AI-generated case summary shortening the purchaser's own diligence.
Q05Price?+
Productised Build: from £120k, 10–12 weeks. Continues on the AI Operator retainer once live.
Next step

Two weeks. £15k. A written blueprint and a working proof-of-concept on your loan book.