Collections Agent Job Description [Updated for 2024]

collections agent job description

In the current financial climate, the role of a Collections Agent has never been more important.

As businesses strive to manage their finances effectively, the demand for skilled professionals capable of optimizing revenue recovery and maintaining positive customer relationships grows.

But what exactly does a Collections Agent do?

Whether you are:

  • A job seeker trying to understand the true nature of this role,
  • A hiring manager outlining the perfect candidate,
  • Or simply curious about the intricacies of collections agency work,

You’ve come to the right place.

Today, we present a customizable Collections Agent job description template, designed for easy posting on job boards or career sites.

Let’s dive right into it.

Collections Agent Duties and Responsibilities

Collections Agents are responsible for contacting clients and collecting outstanding payments.

They need to have excellent communication and negotiation skills, as well as an ability to handle stressful situations.

Their duties and responsibilities include:

  • Locate and contact debtors to inquire of their payment status
  • Negotiate payoff deadlines or payment plans
  • Handle customers’ questions or complaints
  • Identify gaps in the system and recommend solutions
  • Bill reminders to customers through phone, emails or letters
  • Collaborate with the team to maintain collection goals and general A/R performance levels
  • Process payments and refunds
  • Resolve billing and customer credit issues
  • Update account status and database regularly
  • Comply with requirements when legal action is unavoidable


Collections Agent Job Description Template

Job Brief

We are seeking a dedicated Collections Agent to assist with the recovery of outstanding payments from debtors.

As a Collections Agent, you will be responsible for contacting debtors and negotiating payments, maintaining records of collection attempts and successful payments, and providing excellent customer service.

Our ideal candidates have excellent communication and negotiation skills, with a customer-service oriented approach.

A background in collections, sales, or a related field would be advantageous.



  • Contact debtors regarding outstanding obligations
  • Send out notices to overdue accounts
  • Negotiate repayment plans with debtors
  • Locate and contact debtors to inquire of their payment status
  • Investigate and resolve discrepancies while managing debtor inquiries
  • Keep accurate records and reporting on collection activity
  • Adhere to laws and regulations associated with debt collection
  • Work closely with account managers to assist with the collection efforts



  • Proven experience as a Collection Specialist or similar role
  • Knowledge of billing procedures and collection techniques
  • Proficient in MS Office and comfortable with working with databases
  • Excellent communication and interpersonal skills
  • Ability to be polite and compassionate without lacking confidence
  • High school diploma; Associate’s/Bachelor’s degree is a plus
  • Knowledge of relevant legal requirements



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


Additional Information

  • Job Title: Collections Agent
  • Work Environment: Office setting. Some after-hours work may be required.
  • Reporting Structure: Reports to the Collections Manager.
  • Salary: Salary is based upon candidate experience and qualifications, as well as market and business considerations.
  • Pay Range: $30,000 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 Collections Agent Do?

Collections Agents, sometimes referred to as debt collectors, work for collection agencies, law firms, or creditors.

They can also work independently as self-employed individuals.

Their primary role is to recover overdue payments from individuals or businesses who have defaulted on their loans or bills.

They do this by contacting debtors via phone calls, letters, emails, or in-person visits.

Collections Agents are responsible for negotiating repayment plans with debtors and helping them understand the seriousness of their financial situation.

They also ensure that the repayment plans are followed and payments are made on time.

They are tasked with tracking down and contacting debtors who have moved without informing their creditors, a process known as skip tracing.

Collections Agents also have to maintain records of all interactions with debtors, update account information, and inform creditors about the status of collection efforts.

Their role also involves understanding and adhering to all laws related to debt collection.

They must respect the rights of debtors and avoid harassment or threatening behavior.

In some instances, Collections Agents may initiate repossession proceedings or hand over accounts to law firms that specialize in debt collection.

Their ultimate goal is to help creditors recover as much debt as possible.


Collections Agent Qualifications and Skills

A proficient Collections Agent should have the qualifications and skills that align with your job description, such as:

  • Excellent negotiation and persuasion skills to handle debtors and secure prompt payments.
  • Strong communication skills to effectively interact with debtors, listen to their concerns, and explain their debts and payment options.
  • Ability to handle stressful and sensitive situations with diplomacy and tact, while maintaining professional behavior and adhering to relevant laws and regulations.
  • Detail-oriented and able to accurately document and maintain records of all interaction with debtors.
  • Customer service skills to ensure respectful, fair, and consistent treatment of debtors, fostering a positive customer experience even in difficult situations.
  • Good organizational skills to manage multiple accounts, keep track of due dates, and follow up on overdue payments.
  • Problem-solving skills to work out feasible payment plans or alternative payment methods for debtors facing financial difficulties.
  • Knowledge of debt collection laws and regulations to ensure the collection process is conducted in a legal and ethical manner.


Collections Agent Experience Requirements

Collections Agents typically require a high school diploma or equivalent as a basic educational prerequisite, with some employers preferring candidates with an associate’s or bachelor’s degree in finance, business, or a related field.

Entry-level Collections Agents may have up to 1-2 years of experience, often gained through internships or part-time roles in a financial institution or a customer service environment.

This experience provides them with a solid foundation in dealing with customers, understanding financial transactions, and learning debt collection procedures.

Candidates with more than 2-3 years of experience in collections are often seen as ideal as they have honed their negotiation and communication skills, and are familiar with the ethical and legal aspects of debt collection.

Those with over 5 years of experience may have held a senior role within the collections department or have been a team leader.

At this level, they are expected to have a strong understanding of credit management, financial hardship assessment, and have advanced skills in managing challenging customer situations.

They may be ready for managerial or supervisory roles within the collections department.

Some roles may require specific knowledge or experience with collections software, and familiarity with federal and state debt collection laws and regulations.


Collections Agent Education and Training Requirements

Collections Agents typically require a high school diploma or equivalent as their minimum education requirement.

Some employers may prefer candidates with an associate’s or bachelor’s degree, especially in fields such as business, finance, or a related field.

Their training often happens on the job, where they learn about their employer’s specific policies on collections.

It often includes both formal classroom training and working alongside experienced agents.

Knowledge of fair debt collection practices, negotiation strategies, and understanding the related legal aspects are crucial for this role.

Additionally, Collections Agents need to be familiar with various collection software and databases, along with basic computer skills.

Although not mandatory, certifications such as Certified Credit and Collections Specialist (CCCS) or Certified Professional Collections Specialist (CPCS) may prove beneficial.

These certifications demonstrate a candidate’s proficiency and dedication to professional growth in the collections field.

Some states may require Collections Agents to obtain a license to operate, and the requirements vary by state.

Continuing education might be necessary to maintain the license.


Collections Agent Salary Expectations

A Collections Agent typically earns an average salary of $36,000 (USD) per year.

However, this figure can fluctuate based on factors such as level of experience, specific skill set, geographical location, and the company they work for.


Collections Agent Job Description FAQs

What skills does a collections agent need?

A collections agent requires excellent communication and negotiation skills as they deal with debtors and negotiate payment arrangements.

They should also have good problem-solving skills to help find the best solutions for debt recovery.

Good organizational skills are important to manage a portfolio of accounts and keep track of payments.

Additionally, a basic understanding of financial principles and laws related to debt collection may be beneficial.


Do collections agents need a degree?

No, a collections agent does not necessarily need a degree.

However, some may have an associate’s degree or a bachelor’s degree in fields like finance, business, or a related field.

What’s crucial is that they have a good understanding of debt recovery and the laws that regulate it.

Training is usually provided on the job.


What should you look for in a collections agent resume?

When reviewing a collections agent resume, look for previous experience in collections or a related field like customer service or sales.

Knowledge of debt recovery and collections laws is a plus.

Also, look for soft skills like negotiation, communication, and problem-solving.

Proficiency in basic computer software and databases used for tracking payments and maintaining accounts is also important.


What qualities make a good collections agent?

A good collections agent has strong interpersonal skills and can handle potentially difficult interactions with tact and patience.

They are persistent and motivated, as the role often requires following up on overdue accounts.

Good problem-solving skills are important in finding effective solutions for debt recovery.

They should also be detail-oriented, organized, and able to work independently.


Is it difficult to hire collections agents?

Hiring collections agents can be challenging as the role requires a specific set of skills, including the ability to handle difficult and sensitive situations with professionalism.

It’s also important to find candidates who are persistent, highly organized, and motivated.

Employers often have to invest in training new hires to ensure they understand the laws and regulations related to debt collection.



And there you have it.

Today, we’ve unveiled the true essence of what it means to be a collections agent.


It’s not just about chasing debt.

It’s about facilitating financial stability, one collection at a time.

Armed with our concise collections agent job description template and real-world examples, you’re all set to venture into this field.

But why limit yourself?

Go further with our job description generator. It’s your ultimate guide to creating detailed job listings or honing your resume to perfection.


Every payment collected contributes to the larger financial ecosystem.

Let’s foster financial stability. Together.

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