Table of Contents
- Why Manual Follow-Up Doesn’t Scale
- Automation Triggers Explained
- Building DPD Campaigns
- Message Templates by Stage
- When to Escalate to Phone Calls
- Tracking Responses and Payments
- Compliance Guardrails
- Getting Started
Why Manual Follow-Up Doesn’t Scale
Here’s what manual DPD campaigns looks like at scale:
Day 1: Pull a list of accounts 5+ days past due. Call the first 20 before lunch. Leave voicemails. Log notes. Repeat after lunch.
Day 2: Check which accounts paid. Remove them from the list. Add newly past-due accounts. Call more numbers. More voicemails. More notes.
Day 5: Realize you forgot to follow up on the 15-day accounts while working the 5-day accounts. Some accounts slipped to 30 days without a single contact.
The problems: – Inconsistency: Some accounts get five touches, others get zero – Cost: Collector time is expensive ($15-25/hour loaded) – Burnout: Repetitive work wears people down – Documentation gaps: Notes are incomplete, timing is fuzzy – Opportunity cost: Collectors should negotiate arrangements, not dial phones
Automation handles the repetitive work—delivering days past due automated text messages so collectors can focus on accounts that need human judgment.
Automation Triggers Explained
Days past due automated text messages works on simple logic: when an account reaches a specific days-past-due threshold, an action triggers automatically.
Core components:
- Data source: Your loan management system (LMS) provides payment status
- Sync mechanism: API, file upload, or middleware connects LMS to SMS platform
- Trigger rules: “When DPD = X, send campaign Y”
- Exit conditions: “If payment received, stop campaign”
Example trigger rules:
| Condition | Action |
|---|---|
| DPD = 1 | Send “friendly reminder” SMS |
| DPD = 5 | Send “payment overdue” SMS |
| DPD = 10 | Send “please contact us” SMS |
| DPD = 15 | Send SMS + email, flag for call |
| DPD = 30 | Send “credit reporting” warning |
| DPD = 45 | Send “final notice” SMS |
| Payment received | Stop all campaigns for this account |
| Opt-out received | Stop SMS, continue other channels |
The system checks triggers daily (or more frequently), evaluates every account, and fires messages automatically.
Building DPD Campaigns
Here’s how to structure a comprehensive DPD campaign:
Stage 1: Early Delinquency (1-14 DPD)
Goal: Recover payment before it becomes a habit Tone: Friendly, helpful Frequency: 2-3 messages Channel: SMS primary
This stage catches forgetfulness. Most payments recovered here cost almost nothing to collect.
Stage 2: Mid Delinquency (15-29 DPD)
Goal: Create urgency before credit impact Tone: Direct, concerned Frequency: 2-3 messages + email Channel: SMS + email, phone for non-responders
Borrowers who haven’t paid by day 15 need more than a nudge. Mention consequences. Offer payment options.
Stage 3: Serious Delinquency (30-59 DPD)
Goal: Prevent charge-off, negotiate arrangements Tone: Firm, solution-oriented Frequency: Weekly SMS, regular calls Channel: All channels active
Credit bureaus have been notified. The borrower knows this is serious. Focus on arrangements and payment plans.
Stage 4: Severe Delinquency (60+ DPD)
Goal: Last chance before charge-off/recovery Tone: Urgent, final warning Frequency: As needed Channel: Phone primary, SMS supplemental
Human intervention is critical here. SMS supports but doesn’t replace collector engagement.
Message Templates by Stage
1 Day Past Due
Hi {FirstName}, your payment of ${Amount} was due yesterday. Easy to miss! Pay now: {PaymentLink} – Reply STOP to opt out
5 Days Past Due
{FirstName}, your account is 5 days past due. Please pay ${Amount} to avoid late fees: {PaymentLink}. Questions? Reply to this text. – Reply STOP to opt out
10 Days Past Due
Your payment of ${Amount} is now 10 days overdue. Please pay today: {PaymentLink}. If you’re having trouble, reply and let’s discuss options. – Reply STOP to opt out
15 Days Past Due
Important: {FirstName}, your account is 15 days past due. To avoid credit bureau reporting and additional fees, pay ${Amount} now: {PaymentLink} – Reply STOP to opt out
21 Days Past Due
{FirstName}, we haven’t received your payment of ${Amount} and your account is seriously past due. Please call us at {Phone} or pay at {PaymentLink} immediately. – Reply STOP to opt out
30 Days Past Due
NOTICE: Your account is 30+ days delinquent. This may be reported to credit bureaus. Pay ${Amount} now to protect your credit: {PaymentLink} or call {Phone}. – Reply STOP to opt out
45 Days Past Due
FINAL NOTICE: {FirstName}, your account will be escalated for recovery action if not resolved within 5 days. Contact us immediately: {Phone}. – Reply STOP to opt out
Template tips: – Keep messages under 160 characters when possible (single SMS segment) – Always include payment link – Always include opt-out language – Personalize with name and amount – Match tone to severity
When to Escalate to Phone Calls
SMS is efficient but not sufficient for every situation. Escalate to phone when:
Non-response triggers: – No response to 2+ SMS messages – Account reaches 15+ DPD without payment or contact – Borrower replies with questions that need discussion
Complexity triggers: – Borrower requests payment arrangement – Disputes the amount owed – Reports financial hardship – Indicates they want to surrender collateral
Risk triggers: – High-balance accounts – Repeat delinquency patterns – Accounts nearing charge-off threshold
Recommended escalation workflow:
DPD 1-14: SMS only
DPD 15-29: SMS + email, phone queue for non-responders
DPD 30-44: Phone primary, SMS supplemental
DPD 45+: Recovery team, all channels
Automation surfaces accounts needing calls; collectors work the queue instead of building it manually.
Tracking Responses and Payments
Automation without measurement is guessing. Track these metrics:
Message-Level Metrics
- Delivery rate: % of messages successfully delivered
- Response rate: % of messages that get a reply
- Opt-out rate: % of recipients who unsubscribe
Campaign-Level Metrics
- Cure rate by DPD stage: % of accounts that pay at each stage
- Average days to payment: How long after first SMS does payment arrive?
- Escalation rate: % of accounts requiring phone follow-up
- Cost per recovery: Total SMS cost / accounts cured
Sample Performance Dashboard
| DPD Stage | Messages Sent | Cure Rate | Avg Days to Pay |
|---|---|---|---|
| 1-5 DPD | 2,400 | 45% | 2.1 |
| 6-14 DPD | 1,800 | 28% | 4.3 |
| 15-29 DPD | 1,200 | 18% | 6.8 |
| 30-44 DPD | 650 | 12% | 9.2 |
| 45+ DPD | 340 | 8% | 14.1 |
This data tells you: early intervention works. Invest in preventing accounts from reaching 15+ DPD.
Compliance Guardrails
Automated campaigns need automated compliance. Build these guardrails into your system:
Time-of-Day Restrictions
- No messages before 8am or after 9pm (recipient’s time zone)
- Platform should auto-detect time zone from phone number
- Queue messages for next valid window
Frequency Limits
- Maximum messages per account per day (recommend: 1)
- Maximum messages per account per week (recommend: 3)
- Maximum messages per account per campaign
Opt-Out Processing
- Immediate removal from SMS campaigns
- Automatic confirmation message
- Notation in account record
- Alternative channel assignment
Content Compliance
- Required disclosures included in templates
- No deceptive statements
- Amount accuracy verified from data source
- Audit trail of all messages sent
Consent Verification
- Confirm consent exists before first message
- Track consent source and timestamp
- Flag accounts with consent issues
CloudContactAI handles all of these automatically—time zone detection, opt-out processing, frequency caps, and message logging.
Getting Started
Implementing DPD automation is straightforward:
Phase 1: Connect Your Data (Week 1)
- Integrate with loan management system
- Map required fields (name, phone, amount, DPD)
- Test data sync accuracy
Phase 2: Build Campaigns (Week 2)
- Create message templates for each DPD stage
- Configure triggers and exit conditions
- Set compliance guardrails
Phase 3: Pilot (Week 3)
- Run with subset of accounts
- Monitor delivery and response rates
- Verify payment tracking works
Phase 4: Scale (Week 4+)
- Expand to full portfolio
- Add A/B testing for message optimization
- Build reporting dashboards
The Bottom Line
Manual collections is a treadmill that never stops. Every month, new delinquencies pile up while your team struggles to keep pace.
Days past due automated text messages breaks that cycle. The right message goes to the right account at the right time—every time, without fail. Your collectors stop dialing and start negotiating. Your cure rates go up. Your costs go down.
Set it up once. Let it run forever.
Ready to automate your collections workflow?
CloudContactAI’s DPD automation triggers messages based on days past due automated text messages, handles compliance automatically, and integrates with your loan management system.
Start your free 14-day trial →
FAQ
How often does the DPD data need to sync? Daily is standard. Some banks sync multiple times per day for faster response to payments.
What if a payment comes in between sync and message send? Build a payment check into your send logic, or sync immediately before campaign execution.
Can I pause automation for specific accounts? Yes. Accounts in bankruptcy, active disputes, or under special arrangements should be flagged to exclude from automated campaigns.
What about partial payments? Configure your logic: does a partial payment reset DPD, or does the account stay in campaign until paid in full? Most banks continue campaigns for partial payments.
How do I handle accounts that keep cycling through delinquency? Track repeat delinquency patterns. After 2-3 cycles, these accounts may need different treatment—earlier phone calls, payment plan offers, or risk review.