What does a Collection Agent do?
A Collection Agent aids their employer in collecting money owed from customers. They may work directly for a lender, such as a bank or credit card company, or for a third party that collects for multiple businesses. Collection Agent job duties ensure that companies take every step available to avoid financial losses due to nonpayment. At the same time, a Collection Agent seeks to resolve situations in a way that is favorable to the customer by offering settlements and payment plans. This helps to protect their employer’s reputation and ensures compliance with federal, state and local laws that govern collections.
Collection Agent skills and qualifications
A successful Collection Agent possesses skills that allow them to fulfill their duties and responsibilities. As you review résumés for your open position, the following qualifications can help you identify quality candidates:
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Proficiency in the use of database and debt collection software to update records and interpret payment information
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Research skills to locate customers and track down errors that may have led to inaccurate reporting of debts
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Conflict resolution and negotiation skills to overcome obstacles to collecting payment
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Multitasking skills to move from one case to another
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Written communication skills to keep detailed, simple-to-understand notes about contacts
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Oral communication skills to interact professionally with customers and coworkers
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Customer service skills to handle objections and deal with distressed individuals
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Extensive knowledge of laws related to collections and codes of ethics for Collection Agents
Collection Agent experience requirements
Typically, previous experience in customer service or in a call center is necessary to enter a Collection Agent career. Many employers have large teams of Collection Agents who hold positions of varying seniority. Entry-level positions usually require only 1 or 2 years of customer service experience. For senior roles that involve collecting large debts, supervising other agents or training new hires, 3-5 years of work history as a Collection Agent may be required.
Collection Agent education and training requirements
Most employers prefer to hire Collection Agents with at least a high school diploma or GED. In some cases, education may offset a lack of experience in the field. For example, someone with an associate or bachelor’s degree in communications, business or legal studies may have the knowledge and skills necessary to succeed in Collection Agent careers, even if they have never worked in customer service or collections before. For senior positions, you may wish to prioritize candidates who have earned the Certified Commercial Collector credential from the International Association of Commercial Collectors, Inc. (IACC). To get certified, Collection Agents must pass a written examination.
Collection Agent salary expectations
According to Indeed Salaries, the average salary for a Collection Agent is $39,617 per year. Individual Collection Agents may expect to earn more or less based on their geographic location, education, training, certification status and work experience.
Job description samples for similar positions
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Collection Agent job description FAQs
What qualities make a good Collection Agent?
The ability to remain calm when interacting with upset customers is one of the most important qualities for a Collection Agent. Individuals in the field also need to be empathetic. Emotional resiliency is another highly desirable trait, as working with people who are facing financial hardship can lead to burnout.
Is it better to hire a Collection Agent or to outsource collections?
Whether you should have Collection Agents on staff depends on your needs. Some companies choose to keep collections in-house so they can guide messaging and allow for easy collaboration between their billing, collections and legal departments. Others prefer to outsource to reduce costs or put responsibility for complying with regulations on companies that specialize in collections.
Do Collection Agents have different responsibilities in different industries?
Depending on the type of debt they are trying to collect, Collection Agents have different responsibilities when handling debts that cannot be collected. Agents trying to collect unsecured debts, such as credit cards or medical expenses, may need to complete paperwork to initiate a charge-off, which means the creditor writes off the debt. For secured loans, agents may need to begin legal proceedings that can allow property to be seized by the creditor. This may entail completing affidavits detailing the attempts made to collect the debt.
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