What Does It Take to Be a Debt Collector? A Look at a Professional’s Training and Tools

There are many great career opportunities in the debt collection industry. And one of them is being a professional debt collector.

Professionally trained debt collectors serve several purposes. They of course assist a business with improving cash flow by bringing late and non-paying customers to the table. And they help consumers navigate challenging financial situations.

Training is the most important part of being a professional debt collector. There are many parts of being in collections that require consistent knowledge and training as well as mastering creatin skills.

Want to know more about the ongoing training and skill-building that professional debt collectors go through?

Legal compliance for debt collectors

The debt collection industry is one of the most heavily regulated industries. So it’s important for anyone in the position of debt collections to understand the legal compliance behind what we do. Most notably, in the United States, collectors must understand the FDCPA rules which include such regulations as prohibiting harassment, calling at odd hours and misrepresentation to name a few.

Debt collectors must also understand the guidelines that are dictated by the Consumer Financial Protection Bureau which outline measures to avoid deceptive or unfair collection practices.

Debt collection professionals are also trained in state collection laws. Individuals working in a nationwide debt collection agency must understand rules and regulations that can vary by state. Many states have different guidelines and restrictions on how and when a debt collector can communicate with a consumer.

Communication skills and debt collections

If you are communicating with consumers as a debt collector, you must be able to communicate with all types of individuals effectively. A professional debt collector must clearly articulate the reason for the call so a consumer understands exactly why they are being contacted. Another vital skill that debt collectors are trained on and learn overtime is active listening. A debt collector cannot do their job without listening and understanding a consumer’s financial situation, and why they have not paid a bill. Collectors also need to understand how to de-escalate angry or distressed consumers. To make a collection call a success, they must be able to build rapport and work with a consumer to create some type of payment arrangement without conflict.

Training in ethical standards

Every consumer should be afforded the dignity and respect they deserve. Every individual has their own personal situation and financial challenges when it comes to collections. Today’s debt collections focuses on maintaining respectful and professional tones and conversations. The more a debt collection professional can assist a consumer in navigating their financial challenges, the better everyone is. Ethical debt collections mean listening to that consumer and having a respectful conversation that helps to resolve the matter amicably.

Constant feedback and improvement

Today’s ethical collection agency will focus on feedback by analyzing how a debt collector manages a collection call. Regular feedback by reviewing calls from peers helps professional collectors refine approaches.

Understanding financial literacy as a debt collector

Collectors also need to be able to analyze a consumer’s financial situation. They need to have a basic understanding of a consumer’s financial health so they can move forward with a reasonable plan to get the debt paid off. If a consumer is not in a financial situation to pay off a debt, a professionally trained collector will understand that and recommend options.

Understanding the available support system

Debt collections can be a tough job just because of the nature of the work. Not every consumer is going to be comfortable on a debt collection call. And not every debt collector is a good match for every consumer. Part of training a debt collector is providing them the necessary support system they need. And one part of that support system is being able to transfer a call to somebody who may be able to assist that consumer.

Technology in debt collections

There are all types of technology and tools that help a debt collection professional do their job. And it is important for them to be properly trained and understand how to use certain systems. At the basic level, collectors need to understand how to use the provided database software to track accounts and log consumer interactions. Many collection agencies use dialer systems, which help them stay compliant. And of course, data security is a top priority because the collection agency must handle sensitive financial and personal information properly.

Proper and ongoing training are one of the foundations of providing effective and ethical debt collections. It is a must-have in any collection agency.