Collection Manager Job Description [Updated for 2025]

In the era of data and analytics, the role of Collection Managers has never been more significant.

As businesses grow and evolve, the need for skilled professionals who can effectively manage, organize, and protect our data collections heightens.

But let’s delve deeper: What’s truly expected from a Collection Manager?

Whether you are:

• A job seeker trying to comprehend the core responsibilities of this role,
• A hiring manager outlining the perfect candidate,
• Or simply captivated by the intricacies of collection management,

You’ve landed in the right place.

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

Let’s dive right into it.

Collection Manager Duties and Responsibilities

Collection Managers are responsible for overseeing and managing the activities and operations of the collections department, ensuring all procedures are followed in order to reduce an organization’s outstanding accounts receivable.

The duties and responsibilities of a Collection Manager include:

• Develop and implement effective collection strategies and tactics
• Analyze and monitor accounts receivable portfolio to assess collection risk and identify problematic areas
• Oversee and supervise daily activities of the collection team
• Ensure all collection activities are in compliance with laws and regulations
• Train, evaluate, and manage collections staff, improving overall productivity and effectiveness
• Communicate with customers regarding overdue accounts and determine reasons for non-payment
• Negotiate payment plans and settlements with debtors
• Prepare and present reports on collection activities and progress
• Coordinate with legal department for legal actions against debtors in case of non-compliance
• Assist in budget preparation and expense management activities
• Develop and maintain relationships with key clients to ensure timely collections

 

Collection Manager Job Description Template

Job Brief

We are looking for a detail-oriented and experienced Collection Manager to oversee our collection efforts.

The Collection Manager’s responsibilities include developing and implementing strategic plans to recover outstanding amounts, maintaining accurate records, and ensuring all company policies and procedures are adhered to.

Our ideal candidate has a strong understanding of debt collection procedures, excellent problem-solving skills, and the ability to effectively communicate with debtors and internal teams.

Ultimately, the role of the Collection Manager is to ensure that our collection efforts are successful while adhering to legal and ethical standards.

 

Responsibilities

• Developing and implementing effective collection strategies
• Monitoring and maintaining assigned accounts
• Negotiating payoff deadlines and payment plans
• Handling escalated calls and complex collection inquiries
• Keeping accurate records and reporting on collection activity
• Training and guiding staff on collection techniques and legal issues
• Resolving billing and customer credit issues
• Reviewing and adhering to all relevant legal regulations and company policies
• Assessing creditworthiness and approving or rejecting loan applications

 

Qualifications

• Proven work experience as a Collection Manager or similar role
• Knowledge of billing procedures and collection techniques
• Familiarity with all relevant legal regulations
• Experience with MS Office and databases
• Ability to handle sensitive and confidential information
• Excellent communication and negotiation skills
• BSc degree in Business Administration, Finance, or relevant field

 

Benefits

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

 

Additional Information

• Job Title: Collection Manager
• Work Environment: Office setting with options for remote work. Some travel may be required for attending conferences or training sessions.
• Reporting Structure: Reports to the Chief Financial Officer or equivalent.
• Salary: Salary is based upon candidate experience and qualifications, as well as market and business considerations.
• Pay Range: $50,000 minimum to $80,000 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 Manager Do?

Collection Managers typically work for banks, lending companies, and other financial institutions.

They are responsible for overseeing a company’s collections department, which is involved in recovering unpaid debts from clients.

They supervise and coordinate the activities of the collection staff to ensure efficiency and compliance with company policies and legal requirements.

A key part of their role is to implement strategies for recovering unpaid dues, which often includes negotiating payment plans with debtors, repossessing assets, or initiating legal actions.

They are also involved in analyzing data relating to credit and collections, recognizing trends, and suggesting changes in strategies as necessary.

Collection Managers may also interact with customers to resolve disputes, validate debts, or provide information about methods of payment.

They often work closely with the sales and customer service departments to maintain customer relationships and ensure customer satisfaction, while mitigely addressing delinquency issues.

Their role also includes ensuring the team’s adherence to fair debt collection practices and other related regulations to protect the rights of the debtors and the reputation of the company.

 

Collection Manager Qualifications and Skills

A proficient Collection Manager should possess the necessary skills and qualifications that match your job description, such as:

• Excellent negotiation skills to deal with customers and negotiate payment plans or settlements.
• Strong interpersonal skills to build relationships with customers and maintain a professional demeanor during difficult conversations.
• Understanding of relevant laws and regulations, including the Fair Debt Collection Practices Act, to ensure all collection activities are compliant.
• Detailed knowledge of credit and collections processes and systems, to effectively manage and track outstanding debts.
• Exceptional organizational skills to manage multiple accounts and keep accurate records of all transactions and interactions.
• Problem-solving abilities to address disputes, identify solutions and work towards a resolution.
• Strong communication skills to explain complex financial concepts to customers, ensure that they understand the status of their account, and to work effectively with team members.
• Financial acumen to assess creditworthiness and identify potential risks.
• Ability to make informed decisions under pressure and prioritize tasks in a fast-paced environment.

 

Collection Manager Experience Requirements

Collection Managers generally have a background in finance, business administration, or a related field.

They gain significant experience in credit or collections, customer service, and negotiation during their educational and early career paths.

Entry-level candidates may have 1 to 2 years of experience, usually through internships or part-time roles in customer service, accounts receivable, or debt collection agencies.

These professionals can also gain relevant on-the-job experience in roles such as Collection Agent, Credit Analyst, or other finance-related positions.

Candidates with more than 3 years of experience have typically honed their skills in managing collections, resolving customer complaints, and improving collection processes.

They often develop these skills in roles like Collection Specialist or Collections Team Lead.

Those with more than 5 years of experience may have some managerial experience, including staff supervision, budgeting, and strategic planning.

At this stage, they may be ready for a Collection Manager role, overseeing the entire collections department and setting collection goals.

They may also have experience with legal aspects of collections, including knowledge of Fair Debt Collection Practices Act (FDCPA) and other relevant laws.

 

Collection Manager Education and Training Requirements

Collection Managers typically have a bachelor’s degree in finance, business administration or a related field.

This role requires knowledge in areas such as credit and collections procedures, customer service, and basic accounting principles.

Therefore, specialized courses or certifications in these areas can be beneficial.

Some positions may require a Collection Manager to have a master’s degree in finance or business administration.

This advanced degree can demonstrate a candidate’s proficiency in managing large portfolios and handling complex financial issues.

In addition to formal education, Collection Managers also need strong communication and negotiation skills.

Therefore, training in these areas, such as through workshops or seminars, can be beneficial.

Experience in a collections role is also crucial for this position.

Many Collection Managers start out as Collection Agents or in customer service roles to gain relevant experience.

Furthermore, some companies may require Collection Managers to be certified by an accredited organization, such as the American Collectors Association (ACA).

This certification demonstrates a candidate’s adherence to ethical collection practices and their commitment to the profession.

Continuous learning and staying updated with changes in regulations and laws related to debt collection is also important for this role.

 

Collection Manager Salary Expectations

A Collection Manager earns an average salary of $59,850 (USD) per year.

However, the actual salary may fluctuate depending on factors such as experience, qualifications, the size and type of the employing organization, and the geographical location.

 

Collection Manager Job Description FAQs

What skills does a Collection Manager need?

A Collection Manager should have excellent negotiation and problem-solving skills to navigate complex financial situations.

They also need solid communication skills to liaise between debtors and creditors.

They should be adept at data analysis and have a good understanding of financial laws and regulations.

Organizational skills are crucial as they often handle multiple accounts and must keep track of all transactions and communications.

 

Do Collection Managers need a degree?

A bachelor’s degree in business, finance, or a related field is often required for a Collection Manager role.

However, extensive experience in collection or a similar role can sometimes compensate for the lack of a degree.

Some Collection Managers may also hold certifications from recognized financial or credit institutions.

 

What should you look for in a Collection Manager resume?

A good resume for a Collection Manager position should show a solid background in credit or collections, including experience with negotiating and managing financial recovery efforts.

Look for knowledge of financial laws and regulations, expertise in customer service, and proficiency in data analysis and reporting.

Excellent communication skills and the ability to handle difficult situations are also important.

 

What qualities make a good Collection Manager?

A good Collection Manager should have excellent leadership skills to guide and motivate their team.

They must also be patient, respectful, and fair when dealing with debtors.

The ability to make good judgement calls and strategic decisions is crucial.

A high level of integrity and adherence to ethical practices is also vital in this role.

 

Is it challenging to hire a Collection Manager?

Hiring a Collection Manager can be challenging as it requires finding someone with a unique blend of financial acumen, negotiation skills, and a firm understanding of financial laws and regulations.

The candidate should also be able to handle difficult situations with professionalism and compassion.

It’s important to offer a competitive salary and benefits package to attract top candidates.

 

Conclusion

And there we have it.

Today, we’ve unfolded the reality behind the role of a Collection Manager.

Surprised?

It’s not just about chasing overdue payments.

It’s about maintaining the financial health of an organization, one collected payment at a time.

With our go-to Collection Manager job description template and real-world examples, you’re equipped to take the next step.

But why put a limit there?

Explore further with our job description generator. It’s your definitive guide to creating laser-focused job listings or perfecting your resume.

Remember:

Every collected payment contributes to the larger financial stability.

Let’s maintain that stability. Together.

How to Become a Collection Manager (Complete Guide)

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