Definition
A payment plan, also called a payment arrangement or installment agreement, is an agreement under which a debtor pays an outstanding balance in a series of scheduled payments rather than a single lump sum. Plans specify the installment amount, frequency, start date, number of payments, and any settlement discount for completion. Autopay enrollment dramatically increases completion rates.
Most consumers in collections cannot pay in full but can pay something monthly. Plans convert that willingness into cash, and well-designed plans with realistic amounts and automatic payments complete at 70% to 85% versus under 50% for manually paid plans.
Example
A debtor owes $1,800 and says she can afford $150 a month. The AI offers a 12-month plan at $150 with autopay from her debit card, or a 10% discount if she pays $1,620 over 6 months. She chooses the 12-month plan; it completes on schedule.
How HL Hunt handles it
HL Hunt's AI negotiates plans within the authority you set, proposes amounts debtors actually keep, enrolls them in autopay in the same conversation, sends reminders before each draft, and renegotiates automatically when a payment fails, rather than letting the plan quietly die.