How to Become a Debt Collector
The job of a debt collector came into being because most people who take money either cannot or don’t return it on time. The debt collector is called in to collect debt, specially if its unsecured.
Many people specially in the western world live in debt, they spend more money than they make, and sometimes they dig themselves into such a deep hole that they find it difficult to get out. That is when a debt collector comes into the picture. Many agencies avail the services of a debt collector to try and recover their debt.
The scope of the work
Debt collectors first find out how much somebody (individual or company owes). Then they have to approach the person and see how they can pay the money back. They will be the ones sending mails, emails, contacting the people telephonically in an effort to recover the dues. If the person is not willing to pay the money back, he may be threatened with legal or other action, including repossession of the goods (especially if they have been bought on hire purchase) bought with the money.
They are the ones who will arrange for legal or criminal action to be brought against the debtor. They will the ones who will be in charge of the paperwork.
The qualifications and training
A person does not need any formal training to be a debt collector. He must be good in communication skills and be able to follow up on his work as well as take care of the nitty-gritty of administrative details. Some organizations may offer in-house training to debt collectors or seminars and workshops. However, high school is a must.
The Institute of Credit Management offers professional qualifications for careers in credit control. The International Association of Professional Debt Arbitrators and The Association of Settlement Companies offer education, industry tips and advice that is essential for anyone looking to enter the collections line of work. But you can get a job as a trainee or intern without much in the way of qualifications as long as you have good communication skills and have some experience in learning the legalities of debt collection.
Usually jobs in debt collection are out sourced to debt collection agencies. So you can get job in a debt collection agency, independent consultancy or organization. Some large companies may have a debt collection department. Debt collectors can become team heads or even get into managerial level jobs with the requisite experience.
Debt collectors can earn and average salary of around $28,000 or €16,000 a year plus other benefits. Some agencies also give debt collector a commission on the debt recovered by them. Debt collection is a universal job, so with experience you will be able to move anywhere.
For the past 28 years, I have been involved in the credit & collection industry. The last 14 years as VP of collection operations, training and compliance for a national collection law firm.
When a creditor agrees to lend you money, finance your car, or extend credit, there is an agreement and that agreement has terms (rules). The contracts used by creditors do no include clauses that say; the borrower can pay when they want, if they want, or only if they feel they can afford to. When a debt is left unpaid, it is not the creditor that is to blame…it is the borrower. WAKE UP.
I don’t know about you……but I think it makes more sense to work with a creditor and not force their hand. The bottom line is….debt collection will be here as long as loans are made and money is barrowed. You eliminate the ability to cost effectively recover bad debt and you eliminate lending.