What is a debt collector anyway?

Posted by on May 9, 2012 in News | 0 comments

 

…and why do people fear them so much?

Debt

Debt collectors locate and contact customers of overdue accounts. Most initiate contact by letter, telephone, email or sometimes in person.  Good ones try to understand why there is a delay or stop in payments.  At MC$, we often go the extra mile to visit the debtor and make personal contact.  We find the face to face contact is an invaluable and also effective tool in negotiating and problem solving.
You have two parties – party one has extended the credit and party two has incurred debt and is delinquent in repaying.  They are not too excited about speaking to each other!  A good collection agency will make a difference by producing what is missing and that will solve the debt problem.

What are the qualifications needed to become a debt collector? 

High school education is a must for becoming a debt collector. Although no other qualifications are needed for becoming debt collectors, some of the institutes do offer professional qualifications to people pursuing a career in credit control. The International Association of Professional Debt Arbitrators (IAPDA) and The Association of Settlement Companies (TASC) offer several industry tips and other educational advice which help people entering the collections jobs.
Other essential skills include:

  • ability to compromise
  • time management
  • computer familiarity
  • patience
  • excellent communication skills

What not to do as a debt collector
There are also certain limitations as a debt collector. You’re not supposed to do certain things which are not allowed by the FDCPA (Fair Debt Collections Practices Act). These are prohibited by the FDCPA:

  • You must not call a debtor before 8 in the morning or after 8 at night.
  • If the company of the debtor doesn’t allow you to communicate with the debtor during office hours, you’re not supposed to do it.
  • You must not use abuses or threaten the debtor to collect debt.
  • You must also not hide the amount of debt the debtor owes the collection agency and also shouldn’t hide your identity from them.
  • You also must not harass the debtor’s relatives and neighbors to collect debt.

For more info about the Fair Debt Collections Practices Act-click here

Photo by http://www.freedigitalphotos.net/

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