Collection Agent Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a collection agent. Feel free to use our collection agent job description template to produce your own. We also provide you with information about the salary you can earn as a collection agent.
Who is a Collection Agent?
Collection agents act as a link between customers and businesses. They communicate with customers directly to collect their debts and settle outstanding balances. This role requires exceptional customer service, persuasion, and negotiation skills.
In addition to working closely with legal, accounts receivable, and sales departments, collections agents can also develop strategies for collecting accounts that are not paid. If necessary, they will take further steps. High levels of detail and great record keeping are essential to ensure payment plans are recorded and customers are communicated with.
A collection agent is an entity legally authorized to collect default payments and “charge off” debts on behalf of the original creditor. The charge-off debts will be marked as non-collectible by the lender’s system. After a successful collection, the collections agent will earn profit for the creditor. Although such agents are usually registered DCAs (Debt Collection Agencies), they can also be acting under the creditor’s company name. It denotes that a collection agent is a part of the lender’s corporate. An agent for recovery works to establish a diplomatic approach with the debtor to maintain business relations between the first (the creditor) as well as the second (the debtor). A collection agent can work on a local or international level. He follows strict local and international laws to protect the rights of the debtor as a consumer. A collection agent will manage the entire debt recovery process. This includes various negotiation methods and recovery tools that lead to full and successful debt collection.
You can sub-divide a collections agent into business recovery and consumer agents. The first go after consumer debts, while the debtor is an individual; and the second type recovers corporate debts, where the subject of debt and the creditor are both business organizations.
A recovery agent may also be divided according to his or her expertise and areas of activity. If the agent works under the creditor’s trade name and is a part of his company, then he will be labeled as a “first party” collections agent. Because there is no data transfer, such entities can start the collection process much earlier.
The third-party collections agent is a recovery agent who works for licensed DCAs. This type collects delinquent payment on behalf of the original creditor, for a fixed fee (commission). Such agents use integrated APIs, which allow them to exchange default profile information between the collection agency (and the initial lender) and the original creditor.
A collection agent can also be a debt buyer. He can work in a debt collection agency or on his own. His primary goal is to buy bad debt profiles of the original creditor in return for a portion of the lender’s payment. This agent will then have the option to either start the process of recovery as the new creditor or re-sell the purchased debts to another buyer.
If a legal debt collection solicitor specializes only in collecting bad debt default payments, then he can also be considered as a recovery agency. Legal representatives and attorneys with specialized knowledge can carry out more actions than standard debt recovery agents. They can take the property and belongings of debtors by force. They also have the power to transfer the entire debt collection case to a court.
In the case of debt recovery, the methods of contact and collection used by the types of collection agents are the same. They employ different pre-legal, legal, and court procedures. This includes phone calls and written and face-to-face communication, emails and official letters (reminding or informative), personal visits to the debtor’s properties, and so on. To solve the debt problem, they may offer payment plans or sell a part of their consumer’s possessions at auction. A standard debt recovery representative cannot seize personal property or personal possessions except when acting as a legal attorney collection agent. Except for the above-mentioned types of agents, a debt solicitor collection agent only assists during the legal portion.
Collection Agent Job Description
Below are the collection agent job description examples you can use to develop your resume or write a collection agent job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The jobs and duties of a collection agent include:
- Identifying outstanding debts and monitoring assigned accounts
- Assisting customers with any complaints or questions.
- Conducting investigations and developing plans to fix discrepancies
- Negotiating payment plans or deadlines
- Respecting customer policies and procedures
- Closing a set number of collections accounts within a given time to reach the designated target
- Locating and communicating with debtors.
- Implementing repayment schedules.
- Ensuring that your debt status is current and accurate
- Keeping and maintaining a book of debtors.
- Generating sales leads for web advertising and directory listing.
- Using computer GPS to locate vehicles
- Using computer programs to update clients (RDN or PRIOS) and enter assignments.
- Interpreting for customers, coworkers, and managers to facilitate cross-cultural communication.
- Providing administrative support by electronically submitting claims to Medicare, Medicaid, or private insurers for emergency and/or non-emergency transports.
- Supervising the outside counsel and negotiating settlements for the plans.
- Providing information about billing, service issues, and Comcast products.
- Collaborating with accounts, sales, as well as the Legal Department on debt collection efforts.
- Designing and implementing debt collection strategies.
- Respecting the FDCPA through the entire debt collection process.
- Searching public databases to locate defaulters, including Credit Bureau information and background checks.
- Avoiding repeated payments delinquency through negotiation of manageable debt repayments.
- Negotiating settlements to receive payment for a specific percentage of the debt.
- Keeping hard copy as well as electronic records of all communications
- Transmitting statements of delinquencies or satisfied debts to Credit Bureau.
- Track the assigned accounts to find outstanding debts
- Planning your next steps to collect any outstanding payments
- Finding and contacting debtors to inquire about payment status
- Negotiating payment plans or payoff deadlines
- Handling questions or complaints
- Investigating discrepancies and finding solutions
- Alerting your superiors to debtors who are unable or unwilling to pay.
- Complying with legal requirements is essential when legal action becomes necessary
Other important tasks include:
- Customer Communication
Primarily, a collection agent communicates with customers by phone to resolve delinquent accounts or collect on outstanding debts. Collection agents must be patient and diligent as they often deal with debtors who either ignore their calls or immediately hang up when they realize it is an attempt at collecting a debt. A collection agency may encounter rude or hostile customers.
- Negotiation and Debt Settlement
Negotiation is essential when collections agents are trying to establish and enforce payment plans that will eliminate the debt. These plans can be managed for the customer and prevent accounts from falling into default again. Collectors agents might need to negotiate for a settlement that allows the agency to receive payment on a specific percentage of the debt.
- Documentation
The collecting agent keeps detailed records about all communications with customers, the payment plans agreed to by customers and amounts that were paid over the telephone. Although many collection agents use software to help manage customer records, maintain oversight of debit balances, and receive payments, collection agents still need to ensure accurate records are kept throughout the debt collection process.
- Research and Customer Location
Collection agents are often required to locate debtors for them to start the recovery process. This can include accessing credit reports and other publicly available records to comply with the Fair Debt Collection Practices Act. Agents in collections are skilled in processing large volumes of information. They can also keep accurate records of phone numbers and addresses of debtors to assist with debt recovery efforts.
Qualifications
- Training or certification in debt collection is preferred.
- Deep knowledge of the FDCPA & professional codes.
- Proficiency in debt collection software like ACE and CollectMax
- At least 2 years of experience in customer service or sales.
- It will be a benefit to have previous debt collection experience.
- Experience in developing and implementing debt recovery plans and strategies to avoid losses.
- Collaborative debt collection efforts with other departments/institutions.
- Experience in searching public databases and records to track down defaulters.
- Excellent interpersonal and recordkeeping skills.
Essential Skills
- Listening skills
As a collection agent, you must always listen to your debtors to understand why they are not paying up. You should expect stories and explanations as to why the debts aren’t paid. This is only part of what you can expect from debt collection. You must therefore be patient and listen to the debtor.
While it may not make sense for you, don’t let the debtor think that you don’t understand what he/she is trying to say. Stories are an important part of debt collection. Listen carefully and don’t let your mind wander to the phone. You must listen and not make the debtor feel embarrassed by your inability or unwillingness to explain their issues to them.
- Sensitivity/emotional intelligence
It is not a good thing to be known for being a debtor. It is important to be able to use the principle and emotional intelligence when collecting debts owed to debtors. It is important to let the debtor speak for themselves and not shut them down or deny them the chance to communicate over the telephone. Use empathy to understand the reasons presented by the debtor. Avoid offensive or inflammatory words while communicating with debtors. Even though they’ve defaulted on their payments, don’t be rude or offensive to the debtor.
- Calmness
Diplomacy has been the best method of resolving conflict. It is the best way to get around debt collection. You will need to instill calmness in yourself if your goal is to become a successful debt collector. You should also understand that the opposite of calmness is harshness. It is manifested through careless speech and the use of offensive and defaming words. This can make you appear or place you in a negative light soon. When approaching debtors, you should keep calm and try to negotiate a solution. While it is tempting to be serious in your phone conversation, don’t let that stop you from using harsh or inflammatory language. It can make your job much more difficult than you might like.
- Clarity and concision
Clear communication is essential when communicating with debtors. So, whatever words you have, keep the message simple, clear, and concise. It doesn’t matter how many words you speak. Clarity is not dependent on volume.
It is true that the more money you try to recover, the longer you spend talking on the phone.
Be concise, but make sure your words are meaningful.
Failure to communicate clearly and concisely can lead to the debtor thinking you meant what you mean.
Take note of this and don’t be a person who uses too many words, but lacks clarity.
- Know your job
You have responsibilities and limits in your job. Anything that isn’t in line with your job description will not be accepted. You must remember this and stay within your job.
As a collection agent, your job is to recover the debts of debtors in your organization using every diplomatic avenue available. Don’t fall for the trap of thinking that you can do more than your job description. It is not acceptable, and it will not get you any positive recognition.
You are not paid to do the work of others or perform beyond what is required by your job description.
Collecting agents have a challenging job. The job is often misunderstood. Collections don’t require you to be pushy or ruthless. It requires that you approach people from a place where they can understand and persuade them to work with you. You will be able to stand out when you apply for a job at a collection agency if you have the right skills. Although this job requires a particular personality, these traits can be developed. These attributes are essential if you want to excel in collections.
- Problem Solver
Collection agents are a complex business that requires negotiation, compromise, and lots of problem-solving ability. Being creative is key to being a successful collection agent. To meet your expectations in collecting debts, talk to your supervisor. Once you are clear about your expectations, you can talk to debtors about making small, frequent payments, connecting with a local organization that can lower their costs, and finding additional revenue sources.
- Be Fair and Firm
In this job, you must remember that debtors are stressed and frustrated. Your chances of obtaining a collection from debtors will be greater if you try to be genuine and empathic. You can’t go wrong if you are determined to succeed in this field. It is important to maintain healthy skin and a thoughtful approach. You should remember that some people may be in deep debt as a result of traumatizing circumstances like divorce, illness, and injury. You can show compassion to the debtor when you create a payment program to ensure they can fulfill your agreement.
- Communicating Skills
Successful collecting agents must be able and willing to share sensitive information. Communication is crucial for collections. As a collections agent, you will need to communicate, concisely, and in a way that is easy for anyone to understand. To be able to offer a solution, it’s not enough that you speak. You must actively listen to your debtor. Trustworthy agents are aware that the collections industry can be a two-way procedure.
How to Become a Collection Agent
- High school graduation is a must
Employers will prefer to hire collection agents who have a minimum high school diploma. You can consider postsecondary coursework, such as in accounting and business studies, to gain a wide range of skills and knowledge.
Learn from call center experience. Employers seek out collection agents who have worked in call centers before. This helps workers improve their customer service skills and learn basic call center technology. Experienced workers can bring this knowledge to their job, reducing the time required to master this task.
- Learn how to use Microsoft Office
Microsoft Office programs, such as Word or Excel, are often used for data management and documentation in collections. You can learn these programs through a course or class. These courses are often found in libraries around the country or online.
- Create your resume
Specific examples will highlight your negotiation and communication skills. Mention any previous jobs that required these skills.
Local jobs for collections specialists are available. When searching for jobs, specialty areas may be available such as accounts receivable collection agent, legal collection agent, or healthcare collection agent. These job titles provide a good idea of what accounts you will be working with. These positions will allow you to advance your career by obtaining certification.
Where to Work
Some collections agents work directly for companies that are trying to collect on unpaid bills. These agents may have a greater range of duties, including working with other departments to create financial reports and maintaining accurate client records.
Collections agents face the primary challenge of dealing with clients who don’t have the money to pay their outstanding bills. This can lead to sensitive conversations. Collection agents need to be able to approach every conversation with a fresh perspective, without bringing up any emotional baggage from previous calls.
Collection Agent Salary ScaleThe average annual salary for a debt collection agent in the United States is $32,720 per year. This can depend on different factors.