Constant AI launches Delinquency Shield for credit unions

Constant AI has launched Delinquency Shield for credit unions, a product designed to help borrowers avoid rolling 60 days past due.

The launch comes as one in four federally insured credit unions with more than USD $500 million in assets set aside more for loan loss reserves than they earned in the first half of 2026, based on Constant AI's analysis of NCUA call report data.

Delinquency Shield is powered by Nia, a payment assistance agent that handles requests from borrowers seeking relief on loan payments. The system is designed to manage the process from the first conversation through to posting any agreed change to the core processing system.

The tool asks borrowers what caused their financial difficulty, how long it is expected to last, and what they can afford to pay. It then reviews the member's account, applies the credit union's policy to identify a suitable payment assistance programme, presents the terms, and records the outcome.

It focuses on cases before a loan reaches 60 days past due, a point credit unions monitor closely through measures such as the roll rate from 30 to 60 days past due and the cure rate. Constant AI argues this stage is often missed when institutions rely on delinquency reports that only show accounts after borrowers have already fallen behind.

Many credit unions already offer payment assistance programmes, but access is often slowed by manual handling and internal approval processes. Requests can sit in back-office queues while the borrower's position worsens.

Standard collections workflows are usually built around reminders, payment links, and commitments to pay. These may work for borrowers who simply forgot a payment, but are less effective for those facing a short-term financial shock.

MSU Federal Credit Union is implementing the product. April Clobes, President and CEO, said the financial impact of rising reserves affects how institutions serve members.

"Every dollar we set aside in reserves is a dollar that can't be invested back into serving our members. When members are struggling, the best outcome is helping them get back on track before they fall behind. Giving people access to relief options not only supports their financial well-being, it strengthens the credit union and allows us to continue serving members through every stage of their financial journey," said April Clobes, President and CEO of MSU Federal Credit Union.

Delinquency Shield works with the platforms credit unions already use rather than requiring changes to existing systems. Institutions can also review requests and outcomes through a dashboard that tracks loan value protected and charge-offs avoided.

Collections process

The system is intended to reduce the administrative work tied to routine hardship cases. Each offer, outcome, and posting to the core system is logged with an audit trail, while cases that require judgement or a more sensitive approach can remain with human collectors.

This reflects a broader push by lenders and financial technology providers to automate more of the servicing process while keeping policy control within the institution. Constant AI says the product applies rules already set by the credit union rather than creating a separate decision framework.

Catherine York Powers, President and CEO of Constant AI, said the product is aimed at borrowers whose problem is not a missed reminder but an inability to pay on schedule.

"A member who can't pay doesn't need another reminder. They need an answer that fits their situation, preferably before the loan reaches day 60. Nia gives every member the options your best collector would offer, in the first conversation, under your own policy," said Powers.

Delinquency Shield is available for credit unions using most major core processing systems.