Becoming a debt collection attorney is a process that starts with becoming a lawyer. There are several steps to take to pursue this career. To become a debt collection attorney, you first complete law school and then pass the bar exam in the state where you want to work.
You also gain experience in the debt collection industry by working for a debt collection agency or by working with individual creditors. Additionally, it is important to stay up-to-date on debt collection laws and be familiar with the court system. By taking the following steps, you can pursue a career as a debt collection attorney.
Becoming a Debt Collection Attorney
1. Get an Undergraduate Degree
You can become a debt collection attorney just from a high school diploma. However, it is best to study for an undergraduate degree in your related field. Also, this gives you a better chance of becoming a debt collector.
Your expertise should also include knowledge of business awareness, financing, and computer skills. Overall, getting an undergrad degree is the right path to take.
2. Deeply Study Debt Collection Law
Studying debt collection law is the foundation of becoming a debt collection attorney. Learning and understanding the critical laws and acts based on debt collection help you become a better attorney.
It helps you work through legal aspects of specific matters while allowing you to stay connected with the debtors. Moreover, staying updated on these laws and acts is important, because every case has different requirements.
Each state of your country has different laws falling under the debt collection umbrella. However, some laws or acts remain the same throughout the country. Those are the laws you must learn and understand to proceed with debt collection. The following primary acts are the basis for the laws in your state:
- FCRA (The Fair Credit Reporting);
- GLBA (The Gramm-Leach-Bliley Act);
- TCPA (The Telephone Consumer Protection Act);
- FDCPA (The Fair Debt Collection Practices Act); and
- HIPPA (The Health Insurance Portability and Accountability Act).
3. Experience Is Necessary
Gaining relevant experience is important. It helps you acquire important field-related skills to fulfill your job duties. Furthermore, this experience also highlights you in front of potential prospects.
After you enroll in your undergrad degree, pursue internships at debt collecting companies. They improve your opportunities to score jobs and learn valuable skills.
4. Get the Debt Collection Attorney License
After you acquire your undergraduate degree and pass the bar exam, get proper licenses and certifications to practice debt collection. According to your country and state, the requirements for acquiring these may differ.
For example, some states ask you to acquire a collection agency bond before receiving your debt collection license. This bond defines that you took an oath of following the rules and laws followed by professional debt collectors. This makes a positive impact on companies. It is a testimony of your credibility, professionalism, and understanding of how debt collection works. In addition, it assures that you will refrain from theft and fraud and never neglect your duties in any way.
Your official debt collection license requires the completion of a few forms stating important questions related to your financial and personal information. Depending on the company you want to work with and the state’s requirements (where you practice debt collection), the state might ask you to rent a physical office.
For example, suppose you work for a government firm and do most of your debt collection business remotely. For this, the firm may ask you to have a separate physical office from your home to receive your official license.
Primary Responsibilities of a Debt Collection Attorney
Some debt collection attorneys work for debt collection agencies, while others work for individual creditors. The job of a debt collection attorney is to ensure that debtors repay their debts in a timely manner. This involves working with debtors to create debt repayment plans or taking legal action against debtors who do not repay their debts.
If you are interested in becoming a debt collection attorney, it is important to understand the various responsibilities of the job. Debt collection attorneys must communicate with debtors effectively, and they must be knowledgeable about debt collection laws.
In addition, debt collection attorneys must navigate the court system and work with other legal professionals. Other responsibilities include:
- Managing and monitoring outstanding debts and accounts;
- Giving debtors answers to their questions or concerns;
- Designing payment proposals;
- Negotiating repayment terms; and
- Consistently updating account statuses to clients and businesses.
Skills and Salary of a Debt Collection Attorney
A debt collection attorney must possess the following major skills:
- Time management;
- Communication and negotiation;
- Complete understanding of debt collection laws and acts;
- Filing important paperwork;
- Researching and recovering critical financial information;
- Calmness during stressful situations; and
- Ability to perform in court on behalf of your client.
In the USA, according to the Bureau of Labor Statistics, the median annual salary of a debt collection attorney is between $30,000 (25th percentile) and $61,000 (75th percentile). Moreover, the top 10% earners receive up to $100,000 and more annually.
