Debt Collector - Career Advice - Banking Finance and Insurance

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Credit Controller
Debt Counsellor
Repossession Agent

Debt collectors assist businesses and individuals to collect money they are owed by debtors from overdue accounts, unpaid loans or other debts. They contact the debtor by phone, mail or in person, advising them of the debt and arranging for payments to be made. When they are unable to collect payments they may Future Growth Static suggest legal action be taken by their client, in which case the debt collector may prepare summonses and statements of claim for filing at court. In some cases these workers may be required to locate debtors who have changed addresses or are actively attempting to avoid the debt collector.

Debt Collectors collect consumer, commercial, insurance and other forms of debt for clients, make arrangements to settle overdue accounts, formalise payment arrangements and follow up until accounts are fully paid.

Debt collectors try to recover payment on overdue bills or debts, and negotiate repayment plans and solutions with debtors.

Debt Collector's letters
(Source: Workable)

ANZSCO ID: 599311

Alternative names: Bill Collector, Account Collector, Mercantile Agent, Collection Agent, Commercial Agent, Collection Officer,

Specialisations:

Repossession Agent - collects security goods, such as property or vehicles, when debtors are unable to repay their debts.

Knowledge, skills and attributes

To become a debt collector, you would need:

good negotiation skills
calmness in stressful situations
good research skills
patience and persistence
the ability to abide by strict regulations
good computer and internet skills.

(Source: Your Career)

Duties and Tasks

liaising with clients, credit staff, accounts receivable departments, process servers, Private Investigators, Barristers and Solicitors to find solutions to payment problems
identifying, locating and notifying debtors of overdue accounts in writing, by telephoning and in person, and arranging for payments to be made
find and alert customers of overdue accounts by mail, telephone, or personal visits to seek payment
advise customers of necessary actions and strategies for debt repayment
urge customers to pay sums due on credit accounts, or to return merchandise
tracing addresses of debtors who have moved
locate debtors and convey demand for payment
arranging new repayment plans for debtors having difficulties making existing repayments
referring debtors' disputes to creditors
issuing instructions for the commencement of legal action and enforcement to recover money
prepare summonses and statements of claim for filing at court
arranging for money and goods collected to be transferred to creditors' possession, and preparing statements of account for creditors
put a settlement proposal or alternative payment arrangement to the debtor
recording amounts collected and noting any further action required
complying with debt collection guidelines and relevant legislation.

Did You Know?

Key Points

Australian household debt has risen dramatically since the 1980s and is high compared to other countries.

The rise is not as bad as it looks because it’s been matched by rising wealth and debt servicing problems are low. But this will likely change as interest rates rise further & if dwelling prices fall sharply.

High debt levels will mean the RBA won’t need to raise rates as much as in the past to control inflation or as much as the money market currently expects.
(Source: Livewire Markets)

Working conditions

Debt collectors often work in offices or call centres, and may have to go to debtors’ homes or workplaces. In some cases they may also be required to appear in court. Debt collectors have a high level of contact with people who are upset, angry or stressed, and they must be able to maintain their own composure while attempting to resolve the debt to the satisfaction of both the debtor and the client.

The hours of work are often irregular and may include working evenings and on weekends, so that debtors can be contacted at their homes. Most debt collectors work full time, and some have flexible schedules. This work can involve a high level of travel, which can be locally based or throughout the country. Some debt collectors may also liaise with international agencies in cases where the debtor has either fled a country. Debt collectors can find work throughout all regions of Australia.

The work of debt collectors is increasingly specialised. Some debt collectors work in offices or call centres while others are required to visit debtors at their home or workplace.

Many debt collectors work in a call centre for a third-party collection agency rather than the original creditor. A number are self-employed.

Debt Collector on phone
(Source: Zip Recruiter)

Tools and technologies

Debt collectors use standard office equipment such as telephones, computers and fax machines. They will also need a driver’s licence to travel to debtors' homes or workplaces. Debt collectors need to be familiar with all of the strict legislation governing their behaviour and powers in pursuing an unpaid debt.

Education and training/entrance requirements

You can work as a Debt Collector without formal qualifications, however, they may be useful. Some workers have Vocational Education and Training (VET) qualifications in areas such as mercantile agents, financial services, accounting, business, management, banking and finance.

The Certificate III in Investigative Services, Certificate III in Financial Services and Certificate IV in Credit Management are available at registered training organisations throughout Australia. The Certificate III in Financial Services is also offered at TAFE Colleges throughout Australia.

You can also become a debt collector through a traineeship in mercantile agents or credit management. Entry requirements may vary, but employers generally require junior secondary school certificate or equivalent.

The debt collection industry is jointly regulated by the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC) at the national level, and by licensing authorities at the state level. All debt collectors must have an operator licence issued by the relevant State Police Force. To gain this licence you must be over 18 years of age.

Employment Opportunities

Employment of debt collectors is projected to grow slower than the average for all occupations. Debt collectors may work for a variety of employers, including investigation agencies, insurance companies, private businesses and individuals. Those based in larger cities tend to specialise in a particular industry or in assisting litigation procedures.

The increasing efficiency of collectors, as a result of new software and automated calling systems, may slow growth as it should increase productivity and allow collectors to handle more accounts.

Some growth is expected for collectors in medical industries. As the cost of healthcare increases, the amount of medical debt that people incur is likely to rise as well.

Once you are employed, you may be able to develop, and have recognised, additional skills under the Financial Services Training Package that will expand your career opportunities within this industry.

Credit card companies are more commonly selling their debts to third-party agencies, likely also increasing job growth in the collections industry.

Banking, Finance & Insurance

When a borrower cannot repay their loans, lenders use debt collection agencies and repossession agents to recover unpaid property. As a repossession agent, you participate in the recovery of an asset when Future Growth Static someone is overdue on a debt payment. In your job as a repo agent, you may collect the deed to a vehicle or another piece of property, coordinate the transfer of ownership through a bank, and comply with all relevant laws and regulations for the repossession process. You may also help calculate the costs of repossession and help the bank determine the best way to finance complicated repossession efforts. Repossession agents should not be confused with recovery agents, who locate and retrieve people who fail to appear in court, though some people perform both duties.

The work of a repossession agent involves attending at various places including residences, businesses and work places for the purpose of making demands for settlement of outstanding arrears on a debt or else to seek the surrender of security goods such as vehicles, caravans, boats, trucks etc.

Repossession of car
(Source: Resolvion)

A repo man tracks down debtors who are at risk for repossession of personal property due to outstanding loans. Your job would be to get the lien holder's past-due money or tow away the vehicle. You may have what it takes to succeed in a repo man job if you’re unfazed by ignored voice messages, growling dogs, insults and empty promises to pay tomorrow. Such jobs are not limited to men, of course. Anybody who meets state requirements can get in on this potentially dangerous but lucrative occupation.

Many repossessions are halted at the doorstep when the debtor provides cash, bank cheque or evidence of an EFT transaction to clear the outstanding arrears. In the event resolution of the debt cannot be achieved at the doorstep it is the repossession agent's responsibility to effect repossession in a professional manner and in accordance with instructions from the client and in keeping with the various legislation including the ASIC/ACCC Debt Collection Guideline which reflects obligations under the Australian Consumer Law introduced in 2011, the National Consumer Credit Protection Act 2009, and privacy laws and principles.

Repossession agents have the right to reclaim property on behalf of banks, credit unions and auto dealers when a borrower is late on payments or in default on a car loan. You would spend your days interacting with delinquent borrowers who are in arrears on payments for a car, truck, RV, ATV, boat or motorcycle payments, for example.

Once goods are repossessed they are towed or carted by an independent contractor to an auction room in accordance with the financier's instructions. In the event buildings or land are repossessed, the repossession agent is involved in securing the premises after the occupants have been ejected by a Bailiff or Sheriffs Officer and arranging a locksmith to re-secure the premises to prevent re-entry by the debtor/occupier.

Commonly repossessed property includes:

Cars, trucks, motorcycles, ATVs, RVs and other types of motor vehicles
Boats, yachts, private planes and other modes of transportation
Rent-to-own purchases, such as televisions or refrigerators
Any physical property that has an active loan out against it

Debt recovery
(Source: Marshall Freeman)

ANZSCO ID: 599311

Alternative names: Recovery Agent, Repo Agent, Repo Man, Possession Agent,

Knowledge, skills and attributes

A common question is whether a repossession agent (being a collector) requires an Australian Credit Licence issued pursuant to the National Consumer Credit Protection Act, 2009 - a permanent exemption for collectors from that licensing was issued by a regulatory change in June 2010, whereas those engaged in debt purchasing must hold an Australian Credit Licence.

Typically, a competent and successful repossession agent will possess:

Maturity, honesty, integrity and a fine sense of ethics
Good people skills including the ability to empathise with others
Ability to stay calm
Strong detective and research skills
Good communication skills
A firm but friendly manner
Patience, tact and persistence
An ability to negotiate
A consistent work methodology

Locked
(Source: O'Bryan Law Offices)

Duties and Tasks

Retrieve information about the property and its borrower from a debt collection agency
Use detective skills and networking to locate the property and discover information about the borrower
Decide whether to approach or avoid the borrower
Discreet and efficient contact with debtors and diplomatic negotiation for retrieving debt or recovering property
Devise a plan for reclaiming the property, such as asking the borrower for it or towing it
Operate a towing vehicle to move cars, trucks, motorcycles, ATVs, RVs or other vehicles to a secure location, such as a storage facility
Recover the property and move it to a predetermined location
Report the reclaimed property to proper authorities, such as the police, according to local, state and federal laws
Complete all necessary paperwork, such as a condition or inventory report, for the debt collection agency or lender

Working conditions

A repo man job comes with certain risks. The work can be stressful when debtors are angry and confrontational. You may be verbally abused or threatened with bodily harm. You might encounter armed and dangerous individuals. You’ll ring doorbells and nobody will answer even though you can hear people talking inside. However, repossession may go smoothly when the borrower admits to being unable to pay and voluntarily turns over the keys.

Tools and technologies

In your line of work, you might use skip-tracing technology to find an elusive individual who didn’t leave a forwarding address when suddenly moving out of town. Once located, you might knock on the door to have a friendly chat in hopes of resolving the situation. Or, you could tow the vehicle to a storage facility pending resolution of the matter.

Use necessary tech (cameras computers recorders etc.) for purposes of documentation.

Education and training/entrance requirements

Formal education is not a job qualifier, but you must learn about and follow the state laws. For example, in most states, you must give borrowers the opportunity to retain the property by bringing their account current and paying collection fees. Individuals with backgrounds in physical security control and law enforcement, and previous experience with tow truck and heavy equipment are ideal candidates for recovery agent positions.

Many employers require a valid driver’s license, clean driving record, drug screen and criminal history background check.

Employment Opportunities

Repossession agents may work for a variety of lenders, such as banks, financial firms or credit unions. Each state has different repossession laws, but usually, a lender has the right to repossess property when the loan attached to it has one or more late or missing payments. In most states, a lender can hire a repossession agent to recover property with no police or court involvement. Once a borrower has defaulted on a loan, the lender of the property may contact a repossession agent directly or a debt collection agency that hires a repossession agent.

Repossession imminent
Repossession of house imminent
(Source: Training Zone)

Banking, Finance & Insurance

When businesses provide their products or services, before being paid by the customer – this is known as a credit purchase. They then set up an agreement for the fee to be paid at a later date, in one or several payments.

Credit controllers are responsible for managing this credit payment process, ensuring that only reliable customers are given credit, and that all debts are paid on time.

Credit controllers manage their employers’ outstanding debts from customers who buy goods or services on credit from them (buying in advance of payment – and agreeing to pay later)

They decide whether to accept or reject credit purchases, arrange payment terms for customers, and collect payment of unpaid invoices. Future Growth Strong

Ultimately, they are responsible for reducing the risk of bad debt, ensuring that payments are made on time by clients, and improving the cash flow of a business.

Credit controller employers will fall into 2 main categories in terms of the types of credit they offer.

1) Consumer credit: A business which sell products or services to the public on credit. For example, an online clothing store who offer “buy now, pay later” deals

2) Commercial credit: A business which sells products or services to other businesses, and allow their clients to pay after the service has been provided. For example, an office cleaning company who send an invoice to their client after the cleaning service has been completed.

Essentially any company who offer credit terms to their customers — from banking to not-for-profit — need a finance team and strong credit control in order to run effectively. This means that employment opportunities for credit controllers are vast and varied.

What is credit control?
https://youtu.be/29BmtQDMlKA

ANZSCO ID: 5522

Specialisations:

Associate Credit Controller: An associate credit controller works in tandem with credit controllers to manage reports and perform month-end processes. They will assist in the calculation of fees concerning outstanding debts and will help ensure a timely payment is credited to a debtor account.
Credit Supervisor: With a few years of experience, credit controllers qualify for promotion into a supervisory or team leader role. The duties within these jobs are largely the same as the credit controller role but with the added responsibility of managing a team, acting as the main escalation point of contact and ensuring that the whole team resolve disputes in a timely and efficient manner.
Credit Manager: After gaining managerial experience in a supervisory role, the next logical move is to become a credit manager. Credit managers are responsible for maintaining an entire credit department and, while the role can be stressful, it commands a significantly higher salary.

Knowledge, skills and attributes

Bachelor’s degree in finance, accounting, or mathematics.
Previous work experience as a credit controller.
Good understanding of the legal complexities of loans, payment plans, and interest rates.
Proficient in Accounting and Office software.
Ability to reconcile complex debtors' accounts.
Strong communication skills.
Ability to deal with problematic clients.

Credit Control Checklist
(Source: Clear House Accountants)

Duties and Tasks

Cash flow and debt problems are two of the major issues that companies want to overcome once they start getting customers. A well maintained and effective credit control system in place can help a business optimize their cash flow while avoiding significant debt accumulations.

An effective credit-control system is adopted by businesses to ensure that customers who purchase on payment terms have the ability to pay back on time, and once a sale is made the system makes sure that any delayed payments are collected promptly without significant issues.

A credit controller will communicate with a consumer or business representative by way of email, phone, or physical letter in an attempt to collect the debt their company has purchased.

If they are unable to collect a debt and their company determines it is feasible and financially prudent, they may also initiate legal action against the indebted party to collect what is owed.

In many cases, the credit controller will also be the party to decide if someone has a credit history or the credit ratings and cash flow worthy of taking on more debt.

Evaluating new credit requests and conducting client credit checks.
Managing and collecting debts from company debtors.
Setting up the terms of credit for new clients.
Negotiating payment plans - negotiate settlements and potential payment plans for debtors
Managing the collection of all payments and debts.
Responding to client inquiries.
Processing invoices.
Preparing statements and reports for the company accountant.
Managing the sales ledger.
Liaising with customers and the sales team.
Contacting debtors and communicating with them about their outstanding debts
Deciding on conditions for payment terms and settlements plans
Notating client accounts with details of interactions and agreements
Begin legal action against evasive or non-compliant debtors
Process any debts deemed irreconcilable, such as bankruptcies, that are to be written off

Becoming a Credit Controller
(Source: Tanveer Naseer Leadership)

Working conditions

The work hours of a credit controller will greatly depend on where they are employed. In most cases, they will work a standard shift in an office setting. There may be scheduled or voluntary overtime, as well, as determined by their employer. A credit controller career isn’t often difficult, often due to the formulaic way they can determine creditworthiness.

Those who work in collections may even find the work easy, though repetitive. A credit controller job is a relatively low-stress occupation. There are few deadlines and the work is often conducted at the pace of the controller.

The first thing a credit controller will do when they get into the office is generally catch up on communication like emails and calls that have come in during their off-hours. Then they will move on to any necessary investigations that need to be conducted to answer current inquiries.

There will frequently be a period where they work on the phone, contacting clients that have an outstanding invoice or a late payment. Before ending their day they will generally try to make sure the outstanding issues are as minimal as possible that they will need to deal with when arriving the following day.

Credit Control System
(Source: AMPAC)

Education and training/entrance requirements

A Credit Controller job description should detail a minimum Bachelor’s degree requirement in a finance or business related field of study.

In addition to five years’ experience working within an accounts receivable and/or credit control environment, candidates for a Credit Controller role will also need to demonstrate the following qualities:

Strong analytical skills and attention to detail
Good business acumen for problem solving
Competency with large ERP systems
Confidence to deal with a range of stakeholders
Excellent time management skills and ability to prioritise a demanding workload

Employment Opportunities

Jobs are available across the public, private and not-for-profit sectors, though roles are more common in the private sector.

Most individuals interested in becoming a credit controller will start as an assistant credit controller and work in that position for a few years.

Typical credit controller employers include companies within:

Debt collection agencies – Companies who act as an external credit control function for other companies

Financial services
Legal services
Retail
Manufacturing
Public utilities
Insurance
Property
Technology
Government
Local authority
Education
Charity
Consultancy

Did You Know?

Debt Collection in Australia industry statistics

Market Size: $1bn
Number of Businesses in: 675
Industry Employment: 6,269
(Source: IBIS World August 22)

Some facts about credit usage in the US include:

5 of the 8 largest credit card companies have their headquarters in the US
The largest holder of US credit purchases in 2021 with $950 billion
Balances and utilization rates dropped markedly in 2021
New credit accounts are on the rise, meaning more work for a good credit controller
The average US consumer holds 3 credit cards
(Source: Federal Reserve System)

Banking, Finance & Insurance

A debt counsellor works with a portfolio of clients to provide practical and emotional support to help them manage complex personal debt. Debt counsellors are responsible for dealing with complex debt situations, helping people to manage their finances and eventually become debt free. They provide practical help and advice to clients whose debts have got out of control, advising on issues such as financial planning, budgeting, money management and bankruptcy. Future Growth Strong

Debt counsellors liaise with creditors on behalf of clients, give legal advice and

support clients with court proceedings.

ANZSCO ID: 2721

Alternative names: Financial Counsellor, Debt Adviser, Money Advice Caseworker,

Knowledge, skills and attributes

Good communication skills – both verbal and in writing
A compassionate and empathetic approach
Excellent administrative skills
A knowledge of computers and office software
Good listening skills
A personable approach
The ability to gain the trust of others
Good negotiation skills, particularly when dealing with creditors
Being able to maintain an objective/ non-judgemental position even when talking with clients about emotional/ difficult situations
Good organisational abilities
The ability to meet deadlines and manage conflicting priorities
A good knowledge of issues relating to debt and money management
Good numeracy and literacy
A grasp of a foreign language (depending on the area in which you work)
A desire to help people get out of difficult situations
A respect for client confidentiality
The ability to relate to people from a wide spectrum of backgrounds
A flexible/ adaptable approach to the job
Accuracy and good attention to detail
The ability to stay calm under pressure
The confidence to liaise professionally with clients and creditors

Debt Counsellor
(Source: Get Out of Debt Today)

Duties and Tasks

Liaising with clients about their initial debt situation
Assessing clients’ monthly income and expenditure
Offering emotional support to clients
Working with clients to determine priority payments
Preparing monthly payment plans for clients to follow
Communicating with clients as their debt situation changes
Following up late payments/ paperwork with clients
Liaising/ negotiating with creditors to arrange realistic repayments for clients
Managing relevant financial documents/ paperwork
Advising clients on issues such as financial planning/ budgeting/ money management
Helping clients get access to relevant benefits
Giving legal support and advice to clients e.g. by attending court hearings
Supporting clients through the process of bankruptcy if debts are too big to get back under control

Working conditions

Debt counsellors typically work normal office hours, Monday – Friday, 9am – 5pm. In exceptional circumstances they may be required to work out of hours to meet with clients, in the evenings or on Saturdays. Being a debt counsellor is a desk-based role although some debt counsellors will often work out of the office, meeting face-to-face with clients and creditors and occasionally attending court hearings.

Others will only deal with clients over the phone or in writing.

Rescue
(Source: IFEC)

Education and training/entrance requirements

There is a broad spectrum of relevant degrees including accountancy and finance, social work or psychology.

Depending on the needs of the local community it may also be an advantage to have a good grasp of a foreign language.

Relevant work experience is of more importance than formal qualifications and most debt counsellors begin in a related voluntary role. It is important to demonstrate good people skills so experience working with people in any capacity, but particularly with those who are vulnerable, will be of relevance.

Many debt counselling charities or organisations rely on the goodwill of volunteers so it will usually be possible to find voluntary opportunities in the field, such as giving general advice in a centre. It will also be useful to have work experience in a finance-related role e.g. as a bank cashier or in a debt recovery role, or even in a non-professional role such as managing a budget for a community group or society.

Experience using computers/ working in an administrative capacity will also be useful as debt counsellors split their time between desk-based duties and liaising with clients.

Employment Opportunities

Paid positions are usually reliant on funding so tend to be competitive and on fixed-term contracts of no more than two years.

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