The work

Debt collectors are responsible for collecting money owed to companies or individuals. They contact people by phone, in writing, or in person, to arrange the re-payment of unpaid debt on credit cards or mail order goods, for example. By contacting the debtor (the person who owes the money), they can find the best way to get the money paid back. But it's important not to harass debtors - collectors are more likely to find out the reasons for non-payment, and try to negotiate payment plans that debtors can manage.

The first stages of debt collection involve staff in a debt collection agency making phone calls, or writing to debtors, to ask them to pay the debt back. Some organisations use field collectors who collect the repayments in person.

Debt collectors (sometimes called collections representatives) may be concerned with individual or consumer debts, or with businesses wishing to reclaim debts owed for services or products bought from them. Many businesses hand over unpaid debt problems to factoring or commercial debt collection firms who follow up unpaid debts in a methodical and legal manner. Collectors may have to take legal action if persistent efforts fail, and may deliver legal documents concerning debts, or be involved in process serving (a warning of a legal process).

Sometimes debts need to be traced and pursued abroad, through agents or foreign debt collectors.

Hours and Environment

Hours of work may be 9am to 5pm, or shifts between 8am and 8pm in order to allow contact with people who are working during the day. Collectors may have to work on Saturdays and do evening work to contact debtors.

Skills and Interests

Debt collectors should be:

• good communicators in writing, on the phone, or face to face
• persuasive and persistent, with the sensitivity to deal fairly with people, in often difficult situations
• able to stay calm under pressure, and be adaptable in tricky situations
• good negotiators and able to explain financial matters in a firm and clear way
• numerically confident to explain payments and financial terms
• interested in people and credit services
• able to absorb, and abide by, relevant legislation, for instance on data protection and harassment.

Entry

Maturity is considered an advantage in this kind of work, so there is no upper age limit.

• Some financial companies employ early retired or retired people for this work.
• There are no minimum academic qualifications

Training

Agencies normally provide initial on-the-job training and in-house courses on telephone techniques, credit law, litigation and insolvency. Some debt collectors and credit controllers may take qualifications awarded by the Credit Services Association (CSA) or the Institute of Credit Management (ICM), which can enhance career development towards roles with more responsibility.

Opportunities

There are about 20,000 people employed in debt collection, and the prospects for job vacancies are good and possibly increasing. Much of the work involves office administrative and information technology skills to record information and to manage data. Call centre type work can be involved, and part-time work is common.

Many debt collectors, particularly field collectors, are self-employed or work freelance.

Annual Income

Further information

Institute of Credit Management
http://www.icm.org.uk