Are you looking to start your journey as a debt collector?
Being a debt collector isn’t the most celebrated career out there, but it’s important work for maintaining the health of small and midsized businesses. The US debt collections industry is worth about $18 billion, so figuring out how to establish yourself will be of utmost importance.
In this post, we’re going to give you 5 crucial tips for how to become a debt collector. The more you know about the industry and its intricacies, the easier it’ll be to find clients, so keep reading and we’ll help to get you started.
1. Do Your Research
What is a debt collector, really? It’s someone that acts as an intermediary between a business and clients that haven’t paid up. To be a great debt collector, it’s a lot more, however.
Learn as much as you can about debt collection laws and regulations in your state. The Fair Credit Reporting Act, Fair Debt Collection Practices Act, and Telephone Consumer Protection Act are all integral to your work.
You can also find more information here about the duties you’ll perform and the services you’ll provide as a debt collector.
2. Join a Debt Collector Organization
You’ll need to get the proper licenses to start a debt collection business. Each state will have its own requirements, so make sure to read carefully what you need to do to operate legally. No business will hire an unlicensed debt collector to do this work.
It’ll also be helpful to join one or more of the debt collections professional associations that are out there. These can provide you with extra knowledge, but more importantly, will further legitimize your operation.
3. Use Technology
Once you start building a good list of clients, you’ll find yourself getting busier and busier. It’s important to stay organized and one of the best ways to do that is to use some of the technological resources that are available.
Using collections-specific CRM software can help you keep track of all client and borrower information, as well as help you automate messages and schedule meetings with people. Simply put, it’s going to make your life easier if you’re open to using technology.
4. Get Reviews
Building a network of clients will be difficult at first. There are thousands of debt collection companies out there, but not all of them are very reputable. Simply by being an honest and forthcoming collections agent, you can earn the trust of small businesses in your area.
You need to know which clients to target – medical offices, banks, auto shops, etc. – but what’s more important is getting reviews. Always ask happy customers to leave you a review on Google or BBB – this will bolster your reputation and help you find more customers.
5. Develop Emotional Skills
Being a debt collector, your priority is always with your clients. That being said, it’s going to be difficult to chase down people who have fallen on tough financial times all day, every day.
Striking a balance between having an emotional understanding of these people’s plight while still doing right by your client is the most important thing. Work on your listening skills and try to keep emotions at bay as much as you can.
Learning How to Become a Debt Collector
Now that you know how to become a licensed debt collector, you can start formulating a plan for your new business. It’s not going to be easy, but follow these tips and you’ll be able to get a foothold in this industry. From there, it’s all about establishing a good reputation and pleasing your clients.
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