I know going after debtors, especially the sneaky, adamant ones, is no fun. Nevertheless, debt recovery is a necessity on so many levels. The alternative is watching as countless businesses grind to a halt all because some people or bodies refused to honor their overdue payment. Let’s not even get started on the aftermath effect on the general economy.

Debt collection agencies are the unsung heroes working tirelessly to keep the balance. What is a debt collection agency?  They are the companies original creditors seek out when all hopes seem lost. These agencies are known for planning courses of action to recover outstanding debts, be it legal actions or otherwise.

Mind you, the job is more than just picking up the phone to demand debtors pay back what they owe. As a member of the public, having such a superficial view of the role is quite understandable. But as a debt collector, however? It’s completely unacceptable.

So, what exactly do debt collectors do all day? What skills do they need to successfully recover outstanding debts without running into any legal troubles or even burning bridges? That’s why, today, I’ll be discussing the different duties and responsibilities of debt collectors.

What Do Debt Collectors Do?

Understanding exactly what a debt collector job entails is not the responsibility of just the on-field or on-call collection agents alone. It also goes for anyone remotely connected to the collection industry. This includes collection agency owners and even those trying to get a handle on their business’s accounts receivable. Why is this important?

Well, for starters, this job isn’t for the faint of heart. So, if you’re considering stepping into the debt collection industry, having this information will be of great help. Once you have a realistic view of what the job entails, you can finally make well-informed decisions. I’m talking about identifying whether it’s a good fit for your skills and personality.

For business owners, recruitment officers, or job boards, knowing what to expect from your staff will serve as a compass during the hiring process. This means not focusing only on their high school diploma or any other certifications. Do they possess the right skills to carry out debt collectors work to the fullest? It also helps set clear, achievable expectations.

And let’s not forget about the legal side of things. Knowing what debt collectors can (and more importantly, should) do helps to stay on the right side of the law. The last thing you want is for your collection agency to get slapped with a lawsuit because a collector overstepped their bounds.

5 Debt Collector Job Duties You Must Know

Are you considering a career in debt collection? Are you planning to hire new talents for your agency? Or perhaps you are curious about what to expect from debt collectors. Then, check out the debt collector job description template below:

Locate Debtors

This is the first call of order on the collector’s to-do list. Besides, how will you recover a debt if you can’t locate the debtor?

To do this, debt collectors must be attentive to details. He must know how to sift through a lot of information and pick out exactly what they need. This essentially means looking for a needle in a haystack.

But that’s not all. He needs good research skills to gather necessary information or evidence. This can be from public records, online databases, or even social media.

And in doing all this, he must be persistent. Locating a debtor is like solving a puzzle. So, he’ll need to persist while trying different pieces until something fits.

Initiate Contact

Once you’ve located the debtor, it’s time to reach out. But be strategic because this first contact can set the tone for the entire collection process. Whether it’s through phone calls, letters, or emails, you need to handle customers in a professional, non-provocative manner and tone. Of course, being respectful towards them doesn’t guarantee their cooperation. Do it nonetheless.

To promote a smooth locate-and-contact step, a collector needs good communication skills. That means you should be clear, professional, and persuasive. You’ll also need thick skin to endure the rudeness and rejection that comes with the job. Contacting debtors and lashing out due to provocation is not permitted under the law.

Negotiate Repayment Plans

This is where the debt collector’s negotiation skills will be put to the test. Oftentimes, recovering a debt entails revisiting repayment plans and trying to find a solution that works for both parties. You can’t go all out, gun-blazing, and unwilling to find a middle ground.

For the best outcome, have a good understanding of how the financial world works plus the basic financial concepts. Use this knowledge to assess the debtor’s situation, propose realistic solutions, and negotiate payment arrangements. Better still, look beyond standard repayment plans when needed. Think outside the box and craft creative repayment plans that both parties can work with. Also, ensure you’re documenting every interaction and agreement.

Ensure Legal Compliance

This is very important. Ensure both legal and non-legal collection means are within the confines of the law. There are several laws guiding the conduct of debt collectors. But the biggest of them is the Fair Debt Collection Practices Act (FDCPA).

To achieve this, every debt collector must be familiar with laws like the FDCPA and others. You also need attention to details here too. That little thing you overlook may be a stumbling block later.

Report to Credit Bureaus

As a debt collector, you’re also responsible for contacting the credit bureaus, keeping them updated on the status of any debt. This includes reporting your payment terms as well as when debts are paid off. So, ensure you’re meticulous and guard against error reporting. Making mistakes in credit reporting can have serious consequences for individuals.

The role of a debt collector is far more nuanced and multifaceted than many people realize.

As a debt collector, you’re expected to possess a unique blend of skills. These include organization, ethical decision-making, excellent communication, and negotiation skills. Although it’s a challenging role, having these skills makes finding solutions that work for both creditors and debtors less difficult.

Continuous personal development is equally important to have a great career as a debt collector. But like that popular saying, “If you want to go fast, go alone. But if you want to go far, go together.” That’s why you should join us at Connection2Collections.

Connection2Collections is a community of debt-collection kindreds and professionals from across the globe. You can look forward to so many exciting benefits. For instance, you’ll gain access to cutting-edge strategies to boost your performance. You’ll also gain insights into current industry trends and fresh ideas that will help you stay ahead of the competition. Our supportive community of professionals was once in your shoes. So, they understand the challenges you may be facing and will help you achieve your career goals.

So, what are you waiting for? Take the next step in your debt collection journey. See you there!