Collection Associate Job Description [Updated for 2025]

In today’s data-driven society, the role of a Collection Associate has become increasingly important.

As financial landscapes evolve, the need for proficient professionals who can manage, track, and recover debts effectively grows stronger.

But what does a Collection Associate truly do?

Whether you are:

• A job seeker trying to grasp the core responsibilities of this position,
• A hiring manager outlining the perfect candidate,
• Or simply curious about the inner workings of debt collection,

You’ve landed on the right page.

Today, we introduce a customizable Collection Associate job description template, designed for effortless posting on job boards or career sites.

Let’s delve into it.

Collection Associate Duties and Responsibilities

Collection Associates are primarily responsible for recovering the amount of money owed by various debtors to the company.

They usually deal with customers who are late on their payments or have defaulted completely.

They often have the following duties and responsibilities:

• Monitor accounts to identify outstanding debts
• Investigate historical data for each debt or bill
• Find and contact clients to ask about their overdue payments
• Take actions in order to encourage timely debt payments
• Process payments and refunds
• Resolve billing and customer credit issues
• Update account status records and collection efforts
• Report on collection activity and accounts receivable status
• Reviewing the terms of sales, service or credit contract with the debtor
• Negotiate payoff deadlines or payment plans
• Handle questions or complaints, investigate and resolve discrepancies
• Implement strategies for debt recovery while ensuring compliance with company policies and regulations

 

Collection Associate Job Description Template

Job Brief

We are looking for a dedicated Collection Associate to assist our company in keeping our business financial transactions on track.

Your responsibilities will include ensuring and securing our company’s income by reviewing accounts, contacting and negotiating with debtors, and managing all debts owed to our company.

Our ideal candidate is one who is highly organized, has excellent communication and negotiation skills, and is focused on preserving customer relationships while ensuring prompt payments.

 

Responsibilities

• Keep track of assigned accounts to identify outstanding debts
• Plan course of action to recover owed money
• Locate and contact debtors to inquire of their payment status
• Negotiate payoff deadlines or payment plans
• Handle questions or complaints
• Investigate and resolve discrepancies
• Create trust relationships with debtors when possible to avoid future issues
• Update account status and database regularly
• Alert superiors of debtors unwilling or unable to pay when necessary
• Comply with requirements when legal action is unavoidable

 

Qualifications

• Proven experience as a Collection Associate or similar role
• Knowledge of billing procedures and collection techniques
• Familiarity with laws related to debt collection (e.g. FDCPA)
• Working knowledge of MS Office and databases
• Comfortable working with targets and tight deadlines
• Excellent communication and interpersonal skills
• Problem-solving and critical-thinking skills
• High school diploma; Associate’s/Bachelor’s degree is a plus

 

Benefits

• 401(k)
• Health insurance
• Dental insurance
• Retirement plan
• Paid time off
• Professional development opportunities

 

Additional Information

• Job Title: Collection Associate
• Work Environment: Office setting. Some travel may be required for meetings or training.
• Reporting Structure: Reports to the Collection Manager or Financial Controller.
• Salary: Salary is based upon candidate experience and qualifications, as well as market and business considerations.
• Pay Range: $31,000 minimum to $45,000 maximum
• Location: [City, State] (specify the location or indicate if remote)
• Employment Type: Full-time
• Equal Opportunity Statement: We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.
• Application Instructions: Please submit your resume and a cover letter outlining your qualifications and experience to [email address or application portal].

 

What Does a Collection Associate Do?

Collection Associates typically work for businesses in industries such as banking, finance, and retail, or for debt collection agencies.

Their primary responsibility is to pursue past-due payments from customers or clients.

They do this through a variety of means such as phone calls, emails, and letters, reminding the customer of their financial obligations and arranging for payment.

Collection Associates are also often responsible for tracking and reporting on unpaid debts, and may be required to maintain records of collection efforts and customer responses.

They also work closely with clients to set up payment plans and modify existing contracts, if necessary.

They may also liaise with legal teams or third-party collection agencies to escalate collection efforts when required.

Their ultimate goal is to recover as much debt as possible on behalf of their employer, whilst ensuring compliance with relevant laws and regulations.

In some cases, Collection Associates may also be asked to provide feedback on credit policies or procedures based on their interactions with customers.

 

Collection Associate Qualifications and Skills

A proficient Collection Associate should possess the following qualifications and skills to effectively manage debt recovery and ensure smooth financial operations:

• Strong negotiation skills for liaising with debtors to arrange debt payoffs and coordinating with legal teams on default cases
• Good communication skills to clearly and professionally communicate with clients about their debts and financial obligations
• Highly organized and detail-oriented to accurately track and record payments, keep meticulous records of debts and repayments, and ensure all data is correctly entered into the system
• Ability to remain calm and composed in challenging situations, especially when dealing with clients who might be defensive or stressed about their financial situation
• Strong numerical and financial skills to calculate interest rates, balances due, and to develop feasible repayment plans
• Problem-solving skills to resolve any issues or disputes that arise during the debt collection process
• Familiarity with debt collection laws and regulations, ensuring the company’s debt collection processes are legally compliant
• Customer service skills for handling clients professionally and respectfully, while maintaining a firm approach to ensure repayments are made.

 

Collection Associate Experience Requirements

Collection Associates typically begin their careers in entry-level roles in banking, finance, or customer service, where they gain valuable experience communicating with customers and understanding financial products.

A minimum of 1 to 2 years of experience in these fields is often required for an entry-level Collection Associate position.

Candidates should have experience with debt recovery and credit control processes.

They should also be comfortable using various collection tools and software, as well as maintaining and updating customer account information.

Those with more than 3 years of experience may have a deeper understanding of the legal aspects of debt collection, negotiation skills, and are typically proficient in maintaining a high level of customer service while managing sensitive financial matters.

Candidates with more than 5 years of experience in collections or a related field may be ready for a more senior role, such as a Collection Supervisor or Manager.

These roles often require strong leadership skills, a thorough understanding of collection laws and regulations, and the ability to develop and implement effective collection strategies.

 

Collection Associate Education and Training Requirements

Collection Associates usually require a high school diploma or equivalent.

They often receive on-the-job training to learn the specific tools and procedures used by their employer.

This training includes customer service skills, negotiation tactics, and learning how to use collection software.

Many employers prefer candidates who have previous experience in a customer service or sales role, as these positions require excellent communication and negotiation skills.

While not mandatory, certification as a Professional Collections Specialist (PCS) or Certified Receivables Compliance Professional (CRCP) can give candidates an edge.

These certifications are offered by organizations such as ACA International.

Some positions may require Collection Associates to have a thorough understanding of credit and finance principles, which could be gained through an associate’s or bachelor’s degree in finance, accounting, or a related field.

Continuous education is also important as laws and regulations governing debt collection are subject to change.

Therefore, maintaining up-to-date knowledge on these matters can be crucial for career advancement.

 

Collection Associate Salary Expectations

A Collection Associate earns an average of $35,000 (USD) per year.

The actual salary may vary depending on factors such as level of experience, specific industry, and geographical location.

 

Collection Associate Job Description FAQs

What skills does a Collection Associate need?

Collection Associates need strong negotiation skills to communicate effectively with customers regarding their payment status.

They also need to be patient and empathetic as they often deal with customers in stressful financial situations.

Good numerical skills are also essential to accurately keep track of payments and outstanding balances.

In addition, they need to have excellent organizational skills to maintain accurate records.

 

Do Collection Associates need a degree?

While some employers may prefer candidates with a degree in finance or a related field, many Collection Associates positions do not require one.

However, most employers require a high school diploma or equivalent.

Relevant experience in customer service or collections can be a beneficial asset for this role.

 

What should you look for in a Collection Associate resume?

When reviewing a Collection Associate’s resume, you should look for experience in customer service or collections.

Additionally, skills in negotiation, communication, and record-keeping are crucial.

Familiarity with collection laws and regulations and experience with collection software can also be valuable.

 

What qualities make a good Collection Associate?

A good Collection Associate is patient and understanding, as they often deal with customers in difficult financial situations.

They have excellent communication and negotiation skills, which help them to recover owed money effectively.

They also need to be detail-oriented to accurately track and record payment information.

A strong Collection Associate is also ethical and respectful, always adhering to laws and regulations surrounding collections.

 

What are the daily duties of a Collection Associate?

A typical day for a Collection Associate involves contacting customers about their outstanding debts, negotiating payment plans, and processing payments.

They also maintain records of customer interaction and update account status.

Part of their day may also be spent reviewing files for delinquent accounts and overseeing the application of collection laws.

They work closely with the collections department to achieve overall objectives.

 

Conclusion

So, there you have it.

Today, we’ve delved into the intricate workings of being a collection associate.

Surprised?

It’s not just about managing receivables.

It’s about shaping the financial health of a company, one account at a time.

With our comprehensive collection associate job description template and real-world examples, you’re ready to make your move.

But why end your journey here?

Explore further with our job description generator. It’s your next step to precision-crafted listings or finessing your resume to perfection.

Always remember:

Every account managed is a step towards a healthier financial future.

Let’s shape that future. Together.

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