How To Become A Debt Collector

Debt collectors and collecting agents are in charge of collecting risky debts and delayed payments. Debt collectors cooperate with the clients or business consumers in tracing missing debtors or governing legal debt collection procedures. They negotiate a settlement with the client over an agreed payment plan. Credit controllers function in the credit control department. They assist in chasing and tracing late payments from the company’s suppliers and customers. A high school diploma or an equivalent is required to qualify as a debt collector.

Debt collectors or collection agents usually work with third party agencies and are required to make field visits to debtor’s home to recover the debt. The debt will be recovered over legal procedures. During the process, a debt collector’s role is to serve as per court regulations and orders, and follow a legal scheme or framework.

Debt collectors generally work on shifts and also during weekends to contact the debtors who usually work during the day.

What does it take to become a debt collector?

To become a debt collector one should have,

  • Good written and verbal communication skill
  • A confident but polite approach
  • Be able to work under strict deadlines and pressure
  • Good governance and IT skills
  • Effective negotiation skills and ability to explain financial terms and conditions clearly
  • Be able to understand relatable legal and court procedures.

Though no specific requirement is required to enter this profession, these skills can be advantageous.

The process of getting a debt collecting license:

Anyone who decides to conduct the business or functions of collecting a debt or performing activities of a debt collector will require a license as specified under the Act. Executing a debt collecting process without a license is a serious offense.

To obtain a license one must be:

  • A fit and able-bodied person
  • A person of good character and reputation; and
  • 21 years of age or more

Application for the license of debt collecting is available online. Your application for debt collecting license will be referred to the commissioner of police to make inquiries into whether you are an appropriate person to hold a license.


A license will not be issued without security or a bank guarantee in the recognized proforma or a bond in the form recommended by the Debt Collectors Licensing Regulations, 1964. The bank guarantee must be original and for the amount of:

$6,000 for a natural person license

$10,000 for a company license

If a bond is terminated during the license period, the license will be suspended until the bond is replaced.