Engage Borrowers Effectively Amid Rising Auto Loan Delinquency

Auto loan delinquencies have reached their highest level in over 30 years. As of January 2025, 6.56% of subprime borrowers were more than 60 days past due, according to Fitch Ratings - the highest rate since 1994. The Federal Reserve Bank of New York also reported a 3% serious delinquency rate (90+ days past due) across all auto loans in Q4 2024, marking the highest level since 2010. 

The reason is clear: affordability is under pressure. According to an article published by Kelley Blue Book, the average price of a new vehicle has jumped more than $10,000 since 2020, while interest rates have driven monthly payments higher across the board. The average monthly payment on a new car loan stood at $755 in January, far above the $566 average in 2019. 

In this strained environment, lenders and finance providers must respond swiftly with better digital payment tools and compliant, timely communications that meet regulatory standards. 

Remove Barriers to Payment Through Usability and Trust 

Borrowers under financial strain are more likely to stay current when the payment process is intuitive, secure, and responsive. A well-designed portal not only simplifies transactions, it builds trust by demonstrating professionalism and transparency. 

Key capabilities that improve the borrower experience include: 

• Real-time account access to view balances, due dates, and payment history 

• One-time and recurring payments via ACH, debit, or credit card 

• Auto Pay enrollment and digital reminders to reduce late payments 

• PCI Level 1 compliance for secure handling of payment data 

• Single Sign-On (SSO) and secure password protocols with security questions 

• WCAG 2.2 AA accessibility compliance for full usability across devices 

• Centralized access to past communications and transactions, eliminating the need to call for statements or history 

In fact, PayNearMe reports that 47% of consumers say digital reminders help them pay on time. Combined with flexible payment methods and secure access, a modern portal supports consistent on-time payment - even during financially challenging periods. 

Communicate Effectively - And Compliantly 

When delinquency occurs, how you communicate matters. Regulatory expectations around default communications are high, particularly for subprime borrowers. Errors, delays, or noncompliant letters expose your organization to unnecessary risk. 

Consider an end-to-end solution for compliant customer communications 

Gain access to attorney-prepared default letter templates for all 51 jurisdictions, including Notices of Intent, Right to Cure, and Post-Sale Explanations. These templates are maintained by our legal partners and updated in response to statutory and regulatory changes - complete with version redlines, memoranda, and audit trails. 

With DataOceans’ Compliance Hub+, you can: 

• Produce and deliver letters in minutes, not months 

• Eliminate reliance on IT or third-party vendors for template updates 

• Maintain compliance with the latest requirements in every state 

• Track every approval, edit, and delivery with full audit visibility 

• Ensure delivery accuracy through CASS and NCOA-certified processes 

This not only reduces risk, but also streamlines your operational burden - freeing legal, compliance, and technical teams to focus on high-value work. 

Support Payment Success and Mitigate Compliance Risk 

Rising delinquencies require more than collection calls—they demand better systems. A self-service payment portal increases the likelihood of on-time payments by removing friction. Meanwhile, Compliance Hub+ ensures your communications are timely, accurate, and audit-ready. 

Together, they reduce strain on internal teams, improve borrower engagement, and safeguard your institution against regulatory missteps. 

Let us help you accelerate cash flow while maintaining full compliance.