A recovery agent works for a collection agency or directly for a financial institution, engaged in recovering debts from defaulting customers. Banks and financial companies employ recovery agents directly on the payroll or through collection agencies, which have agents working on recovery of debts across different kinds of loans, credit cards, auto loans, mortgages, etc.
This article covers helpful information on how to become a recovery agent.
A recovery agent follows-up with delinquent customers by phone or face-to-face visits. Recovery agents don’t work for banks or loan companies alone, any business or service where customers are required to make payments for goods or services received and fail to do so, in spite of several reminders or notices. For example, hospitals, retail stores, utility companies, etc are all services which use recovery agents to collect money on long-overdue payments. Other responsibilities include:
- Trace customers who’ve moved away from recorded locations, without any forwarding address or trace left behind. This activity is known as “skip-tracing”.
- For customers who are unable to make payments, recovery agents are authorized to offer some amount of waivers or easy debt repayment plans.
- Maintaining detailed records of calls/visits made, payments or promises to make payments, new contact details, etc.
Qualifications & training
- A high school diploma or an approved GED equivalent is the minimum educational qualification required; though an associate or bachelor’s degree in any discipline or work experience in a customer-service role are added advantages.
- On-the job training is provided once you are hired as a trainee, including company policies and procedures, systems training, collection or recovery techniques, communication & negotiation skills, federal and state laws related to debt collection, etc.
In the current economic scenario, recovery agents are quite in demand, since more and more people are defaulting on various kinds of debt. Compensation for recovery agents is paid on a commission basis, i.e. a percentage of the debt collected, or a combination of salary plus commission. Average earnings range between $15,000 and $45,000, usually calculated on an hourly basis.
Advanced career prospects include managerial responsibilities in the organization/company, managing a large team of collectors and recovery agents. Alternatively, you can set-up your own recovery agency and provide services to companies which make use of collection services.
Follow the guidelines provided in this article to become a recovery agent.