AI-Driven Settlement Offer Negotiation for Severely Delinquent Accounts
This workflow recovers significant amounts from severely delinquent accounts by presenting realistic settlement options, negotiating within strict parameters, and fast-tracking documentation. Legal focuses on enforcement, not negotiation.
AI operates via
How It Works
- 01
Settlement Eligibility & Discount Authority Assignment
AI identifies accounts >90 DPD, flagged as 'unlikely to pay in full', or nearing statute of limitations (7 years in UK). CFO pre-approves discount bands: (a) 90–120 DPD = max 20% discount, (b) 120–180 DPD = max 30% discount, (c) 180+ DPD = max 40% discount. Discounts capped by balance size (e.g., >£100k requires CFO individual approval). AI flags account with applicable discount authority.
- 02
Settlement Proposal Generation & Offer Presentation
AI generates settlement offer: total outstanding balance minus approved discount (e.g., £10k debt, 25% discount = £7.5k settlement offer). Proposes payment structure: (a) lump sum within 14 days (full discount), or (b) two instalments over 30 days (slightly reduced discount). Calls debtor with professional negotiation script, presenting settlement as 'final opportunity before legal action'.
- 03
Negotiation & Objection Handling
If debtor objects to offer ('Can't afford £7.5k'), AI probes affordability and proposes alternatives within discount envelope (e.g., '£3.75k today + £3.75k in 30 days' or 'Can you do £6k lump sum given the discount we're offering?'). Offers incentive sweeteners within CFO limits (e.g., 'If you pay within 7 days, we'll add another 5% discount'). Records negotiation tone and outcomes.
- 04
Verbal Acceptance & Confirmation
Once debtor verbally accepts settlement terms, AI confirms: (a) settlement amount, (b) payment method and timing, (c) this is full and final settlement of the account, (d) upon payment, account closed. AI sends immediate SMS with offer summary and payment deadline. Email follows with formal settlement offer letter (legal-reviewed boilerplate) outlining terms.
- 05
Legal Documentation & Payment Tracking
AI routes accepted settlement to Legal team with settlement agreement template pre-populated (debtor name, settlement amount, payment schedule, release clause). Legal reviews and sends formal settlement agreement to debtor for e-signature or wet signature. Upon payment received, AI updates account status to 'settled' and files settlement agreement with case file. If payment fails, escalates to Legal for breach action.
See How It Works
The AI Employee executes each step autonomously - no human intervention required unless explicitly configured.
Settlement Eligibility & Discount Authority Assignment
Settlement Proposal Generation & Offer Presentation
Negotiation & Objection Handling
Verbal Acceptance & Confirmation
Legal Documentation & Payment Tracking
Settlement Eligibility & Discount Authority Assignment
AI identifies accounts >90 DPD, flagged as 'unlikely to pay in full', or nearing statute of limitations (7 years in UK). CFO pre-approves discount bands: (a) 90–120 DPD = max 20% discount, (b) 120–180 DPD = max 30% discount, (c) 180+ DPD = max 40% discount. Discounts capped by balance size (e.g., >£100k requires CFO individual approval). AI flags account with applicable discount authority.
Settlement Proposal Generation & Offer Presentation
AI generates settlement offer: total outstanding balance minus approved discount (e.g., £10k debt, 25% discount = £7.5k settlement offer). Proposes payment structure: (a) lump sum within 14 days (full discount), or (b) two instalments over 30 days (slightly reduced discount). Calls debtor with professional negotiation script, presenting settlement as 'final opportunity before legal action'.
Negotiation & Objection Handling
If debtor objects to offer ('Can't afford £7.5k'), AI probes affordability and proposes alternatives within discount envelope (e.g., '£3.75k today + £3.75k in 30 days' or 'Can you do £6k lump sum given the discount we're offering?'). Offers incentive sweeteners within CFO limits (e.g., 'If you pay within 7 days, we'll add another 5% discount'). Records negotiation tone and outcomes.
Verbal Acceptance & Confirmation
Once debtor verbally accepts settlement terms, AI confirms: (a) settlement amount, (b) payment method and timing, (c) this is full and final settlement of the account, (d) upon payment, account closed. AI sends immediate SMS with offer summary and payment deadline. Email follows with formal settlement offer letter (legal-reviewed boilerplate) outlining terms.
Legal Documentation & Payment Tracking
AI routes accepted settlement to Legal team with settlement agreement template pre-populated (debtor name, settlement amount, payment schedule, release clause). Legal reviews and sends formal settlement agreement to debtor for e-signature or wet signature. Upon payment received, AI updates account status to 'settled' and files settlement agreement with case file. If payment fails, escalates to Legal for breach action.
Key Results
Related Templates
Integrate With Your Favourite Tools
TRUSTED BY HIGH-GROWTH BUSINESSES
Ready to deploy this template?
Our team will configure this template to your CRM, compliance rules, and brand voice. Live in under 7 days.