Debt collector

Debt collectors are employed by individuals or companies who are owed money. They make contact with debtors by letter or telephone or visit a person at home. They offer advice and suggest ways of repaying what is owed. They sometimes take people to court to get the money.

Also known as:

• Bailiff
• Credit controller

Work activities

Debt collectors are employed by debt collection agencies or the credit departments of organisations to recover money that is owed. Consumer debt collection involves collecting money from members of the public who have not paid debts such as public utility bills or credit card bills. In the case of personal debt, a debt collector contacts the debtor (the person who owes the money) in writing or by telephone to ask for the debt to be settled. At this stage, they listen to the reasons for non-payment and offer advice based on the debtor’s circumstances. For example, alternative methods of payment might be suggested.

Debt collectors always try to reach a fair and practical settlement with the debtor that is also acceptable to the creditor (the person or company that the money is owed to). They keep careful records of what has been agreed, often using a database. A field debt collector visits the debtor’s home if payment is not received. They try to negotiate an acceptable repayment plan. Only as a last resort does a debt collector start legal proceedings. At this stage, a bailiff might be employed by a creditor to take away a debtor’s goods or assets.

In commercial debt collection, large amounts of money can be owed. Debt collectors contact the company by letter or telephone. If there is no response, they threaten legal action and if the company still doesn’t pay, legal proceedings start. Debt collectors can specialise in international work. Foreign debt collection companies and legal professionals might be hired to help with this. Other debt collectors specialise as tracing agents looking for debtors who have vanished. Debt collectors might also serve High Court writs.

Personal qualities and skills

As a debt collector, you’ll need to be:

• Patient but assertive.
• Calm, tactful, discreet and understanding in relatively distressing situations.
• A good judge of character.
• Able to keep accurate records.
• You should have:
• Excellent negotiation and interpersonal skills.
• Organisational skills.
• Written communication, IT and keyboard skills.
• Number skills.
• A confident and determined telephone manner.
• The ability to deal politely but effectively with objections.

Field debt collectors usually need a full driving licence.

Pay and opportunities

Salaries depend very much on geographical location and employer. The pay rates given are approximate. Debt collectors earn in the range of £21,000 a year, rising to as much as £32,000. Benefits can include profit-related bonuses and commission, based on the amount of debt recovered.

Debt collectors could work office hours, or shifts between 8am and 8pm, plus some Saturday mornings. Those who work in the field might need to work evenings and weekends.

Employers are debt collecting agencies and the credit departments of large organisations. Opportunities for debt collectors occur in towns and cities throughout the UK.

Some experienced debt collectors become self-employed.

Where are vacancies advertised?

Vacancies are advertised in local newspapers, on the Chartered Institute of Credit Management and employers’ websites, on internet job boards, on the Government’s Find a Job service.

Entry routes and training

You can enter this career by applying directly for vacancies. Some entrants have developed skills by working in credit control or financial advice. You could also complete a level 2 (intermediate) apprenticeship in the role of credit controller and collector, or a level 3 (advanced) apprenticeship as an advanced credit controller and debt collection specialist.

Employers usually provide on-the-job training. The Chartered Institute of Credit Management (CICM) offers Certificates and Diplomas in Debt Collection. The Credit Services Association (CSA) offers the Award, Certificate and Diploma for the Debt Collection Industry. The CSA also runs the Collector Accreditation Initiative, a yearly online test for debt collection staff. The CICM and some larger agencies might run additional training courses in, for example, telephone techniques, negotiation skills, the Data Protection Act, the Consumer Credit Act and insolvency.

Debt collectors can progress to team leader, supervisor and manager posts. Some might become self-employed or start their own agency.

Qualifications

Some entrants have academic or work-related qualifications, such as GCSEs, A-levels or Edexcel (BTEC) level 2 First or Level 3 National qualifications. Employers usually expect applicants to have a reasonable level of literacy and numeracy.

To begin an intermediate or advanced apprenticeship, you will need GCSEs in English and maths. You may be able to complete these alongside your programme if you don’t already have them.

Adult opportunities

Age limits: It is illegal for any organisation to set age limits for entry to employment, education or training, unless they can show there is a real need to have these limits.

Some entrants have developed skills by working in credit control, accounting technician work or financial advice. Employers expect applicants to be able to deal with the public.

Related careers

• Accounts assistant
• Credit controller
• Credit manager
• Door supervisor