Anyone who has had to deal with debt collection knows how terrifying and stressful the experience can be. TrueAccord thinks machine learning could be the solution to that problem, and today the company announced that it has raised $22 million funding to prove it out.

The Series B funding round was led by Arbor Ventures, and it also included participation by Nyca Investment Partnership, Assurant Growth Investing, Caffeinated Capital Fund, Felicis Ventures, TenOneTen and Crystal Towers. The new investment brings TrueAccord’s total funding to nearly $35 million.

Founded in 2013, TrueAccord uses machine learning to streamline debt collection, making it more manageable for the people in debt, while at the same time increasing recovery rates for the financial institutions to whom they owe the money.

TrueAccord’s platform uses machine learning to analyze consumer behavior and determine when and how they should be contacted about their debt, as well as the best payment options to offer. The idea is to make it as easy as possible for consumers to make their payments, and to make that contact the right way in order to increase the likelihood that they will pay.

“TrueAccord is redefining the debt collections industry through a digital approach for debt recovery,” said Melissa Guzy, co-founder and managing partner at Arbor Ventures. “It is achieving higher customer engagement, satisfaction and recovery rates through its data-driven platform, which tailors the collection process to individual consumer preferences. This unique approach is making a positive impact on an overlooked industry ripe for innovation and empowering many of the estimated 77 million people in debt to get on a path to better financial health.”

TrueAccord said its new funding will go toward further developing its platform, which includes adding better audit and compliance functionality. The startup also plans to grow its staff and expand into new vertical markets.

“It was the personal experience of dealing with a debt collector that made me realize the traditional collections industry was ripe for disruption with technology innovation and a more human approach,” said Ohad Samet, chief executive of TrueAccord. “We are seizing this opportunity to use machine learning to humanize debt collection for good.”

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