How to become a Debt Collector

Debt collectors assist in the retrieval of money owed by debtors from overdue accounts, unpaid loans or other debts. They may contact the debtor, advise them of debts and arrange for payments to be made.

Personal requirements for a Debt Collector

Good negotiation skills
Ability to remain calm in stressful situations
Good research skills
Patient and persistent
Able to abide by strict regulations
Good computer and internet skills

Education & Training for a Debt Collector

To become a debt collector you usually have to complete a VET qualification. As subjects and prerequisites can vary between institutions, you should contact your chosen institution for further information. You can also become a debt collector through a traineeship. Entry requirements may vary, but employers generally require Year 10.

Additional information

The debt collection industry is jointly regulated by the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC) at national level, and by licensing authorities at state level. Depending on your state or territory, you may need to hold a licence, pass checks or meet requirements such as minimum age.

Duties & Tasks of a Debt Collector

Debt collectors:

Contact debtors and inform them of debts
Liaise with debtors, clients, process servers and solicitors
Provide information on debts
Prepare summonses and statements of claim for filing at court
Locate debtors and convey demand for payment
Put a settlement proposal or alternative payment arrangement to the debtor
Sight, inspect or recover a security interest.

Tasks

Complying with debt collection guidelines and relevant legislation
Referring debtors' disputes to creditors
Arranging new repayment plans for debtors having difficulties making existing repayments
Identifying, locating and notifying debtors of overdue accounts in writing, by telephoning and in person, and arranging for payments to be made
Arranging for money and goods collected to be transferred to creditors' possession, and preparing statements of account for creditors
Tracing addresses of debtors who have moved
Recording amounts collected and noting any further action required
Liaising with clients, credit staff, accounts receivable departments, process servers, Private Investigators, Barristers and Solicitors to find solutions to payment problems
Issuing instructions for the commencement of legal action and enforcement to recover money

Working conditions for a Debt Collector

Debt collectors often work in situations that can be stressful and must be able to maintain their professional conduct at all times. They may be required to work in the evenings or on weekends. The work may involve a lot of travelling to meet clients or debtors. 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.

Employment Opportunities for a Debt Collector

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.

Specializations

Repossession Agent

A repossession agent collects security goods, such as property or vehicles, when debtors are unable to repay their debts.

Debt Collector

Average age
38 years
Future Growth
Stable
Gender Share
62% female
Average full-time
40 hours
Weekly Pay
$1,231
Skill level rating
Lower skill
Unemployment
Lower unemployment
Full-Time Share
73% Full-Time
Employment Size
9,400 workers
Employment by state
ACT: 0.8%
NSW: 33.7%
NT: 0.5%
QLD: 21.9%
SA: 7.6%
TAS: 1.3%
VIC: 26.6%
WA: 7.5%
Age brackets
15-19: 1.9%
20-24: 12.4%
25-34: 27.5%
35-44: 21.8%
45-54: 19.4%
55-59: 7.9%
60-64: 5.2%
65 and Over: 3.9%
Education level
Advanced Diploma/Diploma: 12.4%
Bachelor degree: 16.3%
Certificate III/IV: 17.5%
Post Graduate/Graduate Diploma or Graduate Certificate: 6.7%
Year 10 and below: 10.4%
Year 11: 6.3%
Year 12: 30.5%