Debt collectors work in various industries and can be employed by in-house collection agencies or external companies that buy debt. They may work on a commission basis and must comply with laws such as the Fair Debt Collection Practices Act.
Debt collector jobs can be in many different industries, but they generally fall into several broad categories. Debt collection jobs can be found at in-house collection agencies or in collection houses to which debts are sold after in-house creditors fail to collect the unpaid balance of debts. Often, those working in the debt collection field work partially on a commission basis, receiving a relatively low base salary with the opportunity to earn a percentage of any debts collected.
A debt collector’s job is to contact individuals who are late on their bills and try to get payments from those debtors. Thus, debt collectors can work in any industry where a person owes money. Generally, debt collectors work for credit card companies, student loan companies, finance or car loan companies, mortgage companies, and banks. Debt collector jobs can also exist in other fields where a person assumes a legal responsibility to pay; for example, a debt collector could work for a cell phone company and try to collect unpaid monthly bills from consumers. It is also very common for bill collectors to collect unpaid medical bills.
Some debt collector jobs are at home, which means that the debt collector works for the original creditor. For example, if Citibank issues a credit card and someone defaults, Citibank will use an internal collector first to try to collect the debt. Internal collectors are all employees of Citibank and collect debt for that company only.
Other collectors work for debt collection companies whose sole purpose is to collect unpaid debts. In fact, these outside collection agencies do not lend money to consumers themselves. Instead, they buy debt for pennies on the dollar from other creditors who have proved unable to collect on the debt. If they are able to collect a small amount of the unpaid balance, they usually make a profit since they paid so little to buy the debt in the first place.
Debt collectors may use various tactics, including blame or repeated phone calls, to try to collect the unpaid balance of debts. Debt collectors, however, must comply with laws such as the Fair Debt Collection Practices Act, which prohibits them from making overt threats or harassing a debtor. The more persuasive a debt collector is in getting people to submit debt payments, the more lucrative debt collector jobs can be.
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