Debt Collection Sales Job Description: Essential Skills That Will Make You Stand Out

What a traditional sales job entails is well-known. After all, selling products offering services in person is as old as commerce itself. However, there’s one cousin in the sales family that nobody talks about enough, but definitely should. I’m talking about debt collection sales!

I’m dedicating today’s post to breaking down the debt collector job description because, honestly, there are tons of opportunities in this field that people often overlook. Meanwhile, the debt collection industry is absolutely booming. We’re talking about a field that’s always hiring, always growing, and always in need of sharp, people-savvy professionals.

So, what does the job description of a debt collection sales personnel entail? What key skills do you need to not only survive, but thrive on this career path? Come with me and let’s unwrap this together.

Debt Collection Sales Job Description

Below is what you’ll be doing day-to-day as a debt collection sales personnel:

Skip Tracing

Recovering unpaid debts is the primary job of every debt collector. Ergo, you’ll be tasked with playing detective, locating uncooperative debtors, and making them pay their debts. One of the best techniques collection agencies use for this is skip tracing. It’s a fancy industry-language for finding people who’ve gone MIA. This means using various smart tools and tech to locate and contact debtors who’ve moved or changed their contact details.

Negotiations

Dialogue is crucial to every successful debt recovery. And, in today’s democratic world, we now have laws that protect everyone’s fundamental human rights. The Fair Debt Collection Practices Act (FDCPA), for instance, was established to keep debt collectors in check and ensure they discharge their debt collector job duties in a professional manner. Being aggressive, domineering, and intimidating is so 1990s. Nowadays, it’s less about the “pay up or else” mentality and more about taking a “let’s figure this out together” approach. You’re expected to be respectful as you negotiate payment arrangements that make sense for both parties.

Documentation

Every debt collector worth their salt knows that proper documentation is crucial. Besides, your pursuit of recovering outstanding debts stands no chance of success without proper documentation and records to back your claims. Ergo, you’ll need to maintain detailed records of all your conversations, agreements, and actions taken. 

Legal Compliance

This is paramount for any debt collection agency and its staff. The law is a double-edged sword. If not wielded properly, it can be self-harming, as the debtor may even take legal actions against you. As a debt collection sales personnel, you have the law on your side. However, that’s only if you also stay on the right side of the law. The moment you get carried away and drift away from the rules and regulations guiding debt collection, you automatically put you and your agency at serious risk. 

Ignorance is no excuse here! Therefore, you need to be a walking encyclopedia of debt collection laws and regulations. That doesn’t mean you must memorize every single rule (that’s what reference materials are for). However, you’ll need to understand the basics to ensure you’re always playing by the book.

Goal Getter

Let’s not forget that this is still a sales job! And like every sales personnel, you’ll have targets to meet. Therefore, you’ll need to balance being an empathetic professional with being effective. This might seem like you’ll be walking a tightrope, but trust me, that’s not the case. It’s totally doable once you acquire the skills I’ll be discussing shortly.

What Skills Do You Need to Be in Debt Collection Sales?

While job boards or job postings may simply require relevant experience and high school diplomas, they are no guarantee for a smooth-sailing career in debt collection sales. Rather, you’ll need to equip yourself with the following skill sets:

Excellent Communication Skills

If there’s one super ability you need in debt collection, it’s definitely the ability to communicate effectively. This is more than just being chatty. Rather, you need to master the art of active listening and giving clear explanations. And most importantly, you need to know how to get your point across without making the other party feel like they’re being pressured.

But, if you’re lacking good communication and customer service skills, what can you do? Well, you need to start practicing to hone your communication and negotiation skills. After all, practice makes perfect! So, start by practicing difficult conversations with friends and family. Seek their honest opinions and suggestions on how to be more effective. You can also record yourself talking and listen for areas to improve. Taking online courses in negotiation as part of your personal development journey is another option. You can also study successful debt collectors and mimic their communication style.

Emotional Intelligence

Not many people possess this quality. So, if you happen to have or acquire this skill, its something that seriously sets you apart. In fact, most collection sales personnel that get into trouble with the law do so because they lack emotional intelligence. You’re going to be dealing with people from all kinds of backgrounds. Plus, debt is a touchy subject that can send people spiraling into different emotions. You can expect emotions like anger, frustration, and, on a few occasions, shame. Your ability to read these emotions and respond appropriately is crucial, since you’ll be responsible for contacting these debtors. React wrongly, and things can easily get out of hand.

So, how can you acquire such a valuable skill? Start by educating yourself as much as possible on emotional intelligence. This could be through reading books, taking conflict resolution workshops, or learning how to manage your own emotions first. Then, put your newfound knowledge to use by role-playing difficult scenarios with colleagues and practicing empathy in daily interactions. Before long, emotional intelligence will become a part and parcel of you.

Problem-Solving Skills

Every employer seeks to hire and value employees who can provide answers for, not add to, existing problems. This means you have to be able to think outside the box while staying within legal boundaries. This skill will also prove useful when you’re trying to negotiate payment arrangements that actually stick.

But, how can you become a problem solver? By learning from experienced collectors. Let their actions serve as a collector job description template for you to model after. Excelling at the job responsibilities may also require studying case scenarios of successful debt resolutions. You also need to stay updated on various debt resolution strategies and can even take courses in financial planning to further enhance your skills.

Tech-savviness

The world has gone digital, as you know. So, lacking technical skills is putting yourself at a great disadvantage. It’s not just skip tracing that requires mastering databases and digital tools. You’ll also need to be comfortable with collection software, customer relationship management systems, and various search tools to locate and contact debtors effectively. So, take online courses in relevant software, practice with free CRM tools, and stay updated on the latest industry technology trends.

Legal Literacy

As I mentioned earlier, you must operate within the confines of the law in the discharge of your duties. Overstepping your boundaries can have painful repercussions for you, your agency, and even the original creditor. To avoid this, you need a good understanding of federal and state regulations around debt collection. So, study the Fair Debt Collection Practices Act. You should also take compliance training courses, attend legal workshops and webinars, and join industry associations to stay updated.

These skills are more like muscles: the more you work them, the stronger they get.

Every successful debt collector started exactly where you are now. They wondered if they had what it takes. Well, the truth is, if you’re detail-oriented, enjoy helping people find solutions, and aren’t afraid of a challenge, you’ve already got the foundation for success in this field. The icing on the cake, however, is to acquire as many of the skills discussed above, if not all. With this, the sky is just the starting point for your career in debt collection sales.

There’s one more step you can take to keep your career moving forward. That’s joining our community of thriving collection professionals, Connection2Collections. When you onboard, either as an individual or company owner, you get to enjoy expert guidance on proven collection strategies, regular compliance updates, cutting-edge tools and resources for collection success, and lots more. See you there!