Debt collection techniques

The techniques and principles used to collect overdue debt from customers.

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debt collection technique

knowledge

cross-sector

Debt collection techniques is an essential knowledge of the following occupations:

Insurance collector: Insurance collectors collect payment for an overdue insurance bill. They specialise in all areas of insurance such as medical, life, car, travel, etc and recurrently contact individuals to offer payment assistance or to facilitate payment plans according to individual’s financial situation.
Credit manager: Credit managers oversee the application of credit policy in the bank. They decide the credit limits to be imposed, the reasonable levels of risk accepted and the conditions and terms of payment made to the customers. They control the collection of payments from their customers and manage the credit department of a bank.
Tax compliance officer: Tax compliance officers collect fees, debt, and taxes on behalf of government institutions in cities, municipalities and other jurisdictions. They perform administrative duties and communicate with other officials and institutions to ensure operations are correct and compliant with policies.
Debt collector: Debt collectors compile debt owned to the organisation or third parties, mostly in cases when the debt is past its due date.

Pawnbroker: Pawnbrokers offer loans to clients by securing them with personal objects or items. They assess the personal items given in exchange for the loan, they determine their value and amount of loan available and keep track of inventory assets.
Court enforcement officer: Court enforcement officers enforce orders of court judgements such as managing the recovery of money owed, seizing of goods, and selling goods in public auctions to obtain the money owed. They also send summons and arrest warrants to ensure attendance in court or other judicial procedures.

Debt collection techniques is optional for these occupations. This means knowing this knowledge may be an asset for career advancement if you are in one of these occupations.

Financial manager: Financial managers handle all the matters in reference to the finance and investments of a company. They manage financial operations of companies such as the assets, liabilities, equity and cash flow aiming to maintain the financial health of the company and operative viability. Financial managers evaluate the strategic plans of the company in financial terms, maintain transparent financial operations for taxation and auditing bodies, and create the financial statements of the company at the end of the fiscal year.
Credit union manager: Credit union managers oversee and manage member services, supervise staff and operations of credit unions. They inform staff about the latest credit union procedures and policies and prepare financial reports.
Financial risk analyst: Financial risk analysts correctly identify and review potential risk areas threatening the assets or capital of organisations. They specialise in either credit, market, operational or regulatory risk analysis. They use statistical analysis to evaluate risk, make recommendations to reduce and control risk and review documentation for legal compliance.
Credit risk analyst: Credit risk analysts manage individual credit risk and care for fraud prevention, business deal analysis, legal documents analysis and recommendations on the level of the risk.

References

1. Debt collection techniques – ESCO