Duties of a Debt Recovery Agent


Debt recovery agents are charged with the responsibility of collecting monies owed to the parties they represent. Some debt recovery agents work in-house or directly for the creditor, while others work for third parties that represent creditors. As a debt recovery agent, professionalism and customer service must be exercised while fulfilling the objective of debt collection.

Customer Information Access

  • In order for debt recovery agents to determine the amount that a client owes, they must be able to access customer information. This often involves the use of computer software systems that record loan balances, invoice dates and payment history. This information allows recovery agents to be informed about the debt and better able to discuss it with the client.

Client Communication

  • Debt recovery agents must be able to use technologies to clearly and effectively communicate with clients regarding debt. While technology has provided new ways to communicate, such as email, it doesn't always allow for a real-time exchange, as with standard land-line telephones. When speaking with clients, debt recovery agents must be knowledgeable regarding the debt and maintain a professional and polite demeanor. Their focus is on gathering information or causing the client to take action regarding debt repayment. In some cases, this may involve accepting a credit card payment over the phone.

Customer Service

  • Debt recovery agents must remember that the client is a debtor and a customer. If a client becomes upset with a collection call and decides not to buy from a company again, this hurts sales. Without sales, a company cannot survive. Also, without sales debt to collect, there is no need for recovery employees. Agents must exercise customer service by letting the client know that they appreciate their business to believe it in order to sound sincere. When they develop a friendly business relationship with clients, agents can make collections a less painful experience, not only for the client but for themselves.

Credit Department Cooperation

  • In many organizations, debt recovery agents must work with the credit department of a company because some clients are financially unable to meet certain collection demands. Understanding a client's financial position is important for this reason. Companies use credit departments to research credit scores, payment histories and outstanding debts. If a client is having trouble making payments on other accounts, too, then the debt recovery agent should consult the credit department. After reviewing a client's financial health, the credit department may revise the collection payment amount. This form of cooperation allows a company to better collect on monies owed while keeping clients loyal.

Adhere to FDCPA

  • The Fair Debt Collection Practices Act (FDCPA) was implemented by the Federal Trade Commission to insure that debt recovery agents do not use unfair, abusive or deceptive collection practices. All debt recovery agents must adhere to FDCPA rules or suffer penalties. FDCPA rules include abstaining from harassment, vulgarity or profanity and false identification.

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