Delinquencies are climbing. Repos are up. Servicing costs are outpacing recoveries. 

And collections teams are still stuck handling repetitive calls that follow the same script every time.

You know the work. You've done the work. And if you're honest, it's not where your best people should be spending their time.

AI agents are already replacing the low-value, high-volume conversations across the collections cycle. 

No buzzwords. No “future of work” talk. Just trained systems doing grunt work, reliably.

Here’s where leading auto lenders are using them today, and what they’re getting in return.

Early-stage outreach

Cure calls. Past-due reminders. Right-party verification.

You probably have agents spending hours each day reminding people they’re behind and reading off the same disclosures. They log notes. Verify contact. Repeat.

This is policy work, not judgment work.

AI agents handle it just as well — often better — and don’t call in sick.‍

They’re currently being used to:

• Place outbound calls and verify identity using Knowledge-based authentication
• Explain past-due status and cure options
• Walk through payment or hardship paths
• Escalate to humans if nuance comes up
  

Results we're seeing:

• 50-80% of early-stage conversations fully automated
  
• 60% workforce reduction in that band
  
• Up to 35% drop in direct call costs
  

And they work after hours, when a surprising number of borrowers actually call to make a payment.

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Late-stage delinquency

Balance checks. Deferrals. Payment plans.

As accounts age, the conversations get slightly more complex, but still follow a script. Agents are stuck fielding the same inbound questions, toggling between systems, and trying to stay compliant.

AI agents don’t get flustered. They read from the same playbook every time.

Lenders use them to:

• Surface live account data to answer balance and fee questions
  
• Guide borrowers through eligibility for extensions or deferments
  
• Capture call notes and push updates to core systems
  

Automation rates:

• 30-60% of conversations offloaded
  
• 25-45% reduction in agent hours
  
• Up to 25% cost savings per call
  

No hold times. No dropped data. And no burnout.

Repossession workflows

No one wants these calls. Not the borrower. Not your agents. But they need to happen — and they need to be done by the book.

The work is sensitive, but not complicated. And AI agents are built for exactly that.

Used today for:

• Scheduling surrender pickups
• Delivering clear instructions to borrowers on what to remove
• Syncing updates back into the LMS

Impact:

• 10-25% of repossession interactions automated
  
• 5-10% in labor savings
  
• Cleaner case handling, fewer follow-ups

Agents hate doing this. AI doesn’t care. It just gets it done.

Post-repossession communication

Redemption notices. Auction disclosures. Final balances.

This part’s a legal minefield. And it’s where mistakes cost you in compliance penalties, chargebacks, or just wasted time redoing work.

AI agents are now trusted to handle it.

They’re handling:

• Delivery of jurisdiction-specific notices and timeframes
• Inbound calls from borrowers wanting to retrieve property or redeem their car
• Scripted, logged communication with full audit trails

Why it works:
It’s structured communication with clear legal rules. That’s exactly where AI excels.

Why this isn’t a “Maybe Later” conversation

If you're only using human agents to handle every reminder, every deferral request, every repo call, you’re burning hours you don’t need to.

AI agents are already delivering:

Some lenders are seeing 3-5x ROI in under six months.

This isn’t about replacing your team.

It’s about freeing them from low-value work — the kind no one enjoys and you can’t staff fast enough.

So what you're waiting for? See if it fits your conversations, schedule a quick chat here.