Torchora
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Key Responsibilities and Required Skills for Credit Collection Officer

💰 $28,000 - $55,000

FinanceCollectionsCredit RiskCustomer Service

🎯 Role Definition

A Credit Collection Officer is responsible for managing delinquent accounts, executing debt recovery strategies, and preserving customer relationships while protecting the organization’s credit quality and cash flow. The role requires proactive contact with borrowers, negotiation of repayment plans, documentation of account activity, escalation for legal action where necessary, and continuous collaboration with credit, legal, and customer service teams to minimize losses and optimize recovery rates. Ideal candidates combine strong negotiation skills, regulatory knowledge, and data-driven decision-making to meet and exceed recovery KPIs.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Collections Agent / Collector
  • Customer Service Representative in Banking or Lending
  • Junior Credit Analyst or Loan Processing Assistant

Advancement To:

  • Senior Credit Collection Officer
  • Collections Team Lead / Supervisor
  • Recovery Manager / Head of Collections
  • Credit Risk Manager

Lateral Moves:

  • Credit Underwriting / Credit Analyst
  • Customer Retention Specialist
  • Loan Operations or Account Management

Core Responsibilities

Primary Functions

  • Manage a high-volume portfolio of delinquent consumer and/or commercial accounts, proactively contacting customers via phone, email, SMS, and registered mail to obtain payment, bring accounts current, or negotiate structured repayment plans while documenting all interactions in the CRM.
  • Execute outbound collection strategies to meet or exceed monthly and quarterly recovery targets (e.g., arrears reduction, cash collected, promise-to-pay adherence), and continuously optimize outreach timing, message, and channel mix based on performance data.
  • Assess customer financial situations quickly and accurately to recommend feasible repayment arrangements, debt restructuring, forbearance, settlements, or hardship programs that balance recovery goals with customer retention and regulatory guidelines.
  • Use skip-tracing, credit bureau data, public records, and internal account history to locate debtors, validate contact information, and identify co-obligors or guarantors for effective recovery planning.
  • Maintain full compliance with all relevant laws and regulations (e.g., FDCPA, FCRA, GDPR, local consumer credit laws), company policies, and audit requirements when communicating with borrowers and handling sensitive financial information.
  • Prepare and submit written demand letters, final notices, and pre-litigation documentation; coordinate with legal counsel to escalate accounts for court action, garnishment, or repossession as appropriate.
  • Investigate and resolve customer disputes and billing errors by liaising with billing, underwriting, or product teams; ensure timely corrections and clear communication to reduce complaint escalation and chargebacks.
  • Record, update, and reconcile payments, partial settlements, returned payments, NSF events, and refunds in the collections system and general ledger, ensuring accurate aging, balances, and audit trails.
  • Monitor portfolio KPIs and trends (days past due, roll rates, cure rates, recovery rate, delinquency ratios) and prepare weekly and monthly reports for the Collections Manager and Credit Risk leadership.
  • Implement and test collection campaigns using automated dialers, IVR, email workflows, and digital payment links to increase right-party contact rates and reduce manual dialing inefficiencies.
  • Negotiate settlements that minimize loss severity (including lump-sum settlements and structured payment plans) and obtain clear written agreements, ensuring collection of required documentation and signatures for enforceability.
  • Support recoveries on secured accounts by coordinating with repossession, valuation, and remarketing teams; prepare collateral recovery paperwork and supervise post-repo processes to maximize salvage value.
  • Perform credit reviews on accounts flagged for repeated delinquency to recommend account-level actions (re-age, charge-off, limit reduction, or write-off) in line with credit policy and loss provisioning guidelines.
  • Work cross-functionally with onboarding, underwriting, and product teams to provide feedback on credit policy exceptions, fraud patterns, and product risks that increase delinquency, enabling continuous improvement of underwriting criteria.
  • Coach and mentor junior collectors on effective negotiation techniques, legal compliance, and account prioritization to improve team performance and promote best practices.
  • Maintain accurate notes and digital recordings (where applicable) for all collection activity to support dispute resolution, litigation, audits, and regulatory examinations.
  • Participate in customer retention and recovery campaigns that include win-back offers, loan restructuring, or product adjustments to recover revenue while preserving customer lifetime value.
  • Facilitate monthly provisioning and charge-off cycles by supplying reconciled delinquency data, recovery outcomes, and any intimation of bankruptcy or insolvency filings.
  • Escalate high-risk or high-value accounts to senior management and legal counsel with a recommended action plan that includes the cost-benefit analysis of litigation, settlement, or charge-off.
  • Ensure secure handling of Personally Identifiable Information (PII) and payment card information (PCI) according to internal security standards and external compliance regimes.
  • Continuously review and recommend improvements to collection scripts, call flows, scoring models, segmentation criteria, and dispute-handling processes to improve recovery and customer experience.
  • Conduct exit interviews and post-settlement follow-ups to confirm compliance with settlement terms and identify any operational gaps that could cause re-default.
  • Support external audits and regulator inquiries by providing timely documentation, recovery metrics, and process descriptions, and implementing corrective actions for identified issues.
  • Maintain up-to-date knowledge of industry best practices, competitor collection programs, and new technologies (e.g., AI-driven scoring, robotic process automation) and pilot relevant tools to drive efficiency.

Secondary Functions

  • Support ad-hoc data requests and exploratory analysis of portfolio performance to aid forecasting, provisioning, and strategy adjustments.
  • Contribute to collections policy reviews and the organization’s recovery strategy roadmap by providing operational insights and field-level feedback.
  • Collaborate with business units (underwriting, fraud, legal, customer service) to translate operational pain points into prioritized system or policy changes.
  • Participate in sprint planning and agile ceremonies when collections tools and automations are being developed or enhanced.
  • Train internal stakeholders on the impact of collections actions on customer experience, credit risk, and operational costs.
  • Assist in development and rollout of new digital payment solutions, payment links, and self-service options for delinquent accounts.
  • Help design customer communication templates and compliance-approved disclosure language for email and SMS campaigns.
  • Provide input for vendor selection, SLA monitoring, and performance reviews for external agencies, repossession vendors, and legal partners.
  • Support credit committee meetings with case summaries for disputed accounts or proposed exceptions.
  • Maintain knowledge repository of legal precedents, regional rules, and approved settlement templates.

Required Skills & Competencies

Hard Skills (Technical)

  • Proficiency with collections and CRM platforms (examples: FICO Collect, Tallyman, Cforia, CollectOne, Experian collections tools, Salesforce Service Cloud) and ability to maintain accurate account records.
  • Strong Excel skills (pivot tables, VLOOKUP/XLOOKUP, conditional formatting) for portfolio analysis, reconciliation, and KPI reporting.
  • Familiarity with predictive scoring, segmentation, and debt prioritization models to optimize contact strategies and resource allocation.
  • Experience with automated outbound dialers, IVR systems, SMS platforms, and email campaign tools to scale collection outreach.
  • Knowledge of legal collections process, documentation required for litigation, repossession logistics, and working with external counsel.
  • Ability to interpret credit bureau reports, public filings, and basic financial statements to assess debtor capacity and recommend recovery pathways.
  • Competence with payment processing systems, reconciliation, returned items management, and settlement accounting.
  • Use of skip-tracing tools and open-source research techniques to locate hard-to-find debtors.
  • Familiarity with regulatory frameworks impacting collections (FDCPA, FCRA, GDPR, local consumer protection laws) and ability to apply compliance controls.
  • Experience creating and interpreting dashboards and management reports (Tableau, Power BI, or internal reporting tools) to drive data-driven decisions.

Soft Skills

  • Strong negotiation and persuasion skills with a track record of recovering delinquent balances while preserving customer relationships.
  • Excellent verbal and written communication skills for clear, compliant, and empathetic engagement with customers and stakeholders.
  • Resilience and persistence to handle rejection and high-stress interactions while maintaining professionalism.
  • Analytical mindset to identify root causes of delinquency trends and recommend practical, scalable solutions.
  • Attention to detail and discipline in documentation to meet audit and compliance requirements.
  • Time management and prioritization skills to manage a large portfolio and competing escalations.
  • Problem-solving orientation with creativity for structuring workable repayment solutions.
  • Empathy and customer-focus for dealing with hardship cases and building trust during difficult conversations.
  • Team-player attitude and ability to collaborate across diverse functional teams.
  • Ethical judgment and confidentiality in handling sensitive financial and personal data.

Education & Experience

Educational Background

Minimum Education:

  • High school diploma or equivalent. Relevant vocational certification in collections, financial services, or customer service is advantageous.

Preferred Education:

  • Bachelor's degree in Finance, Accounting, Economics, Business Administration, or a related field.

Relevant Fields of Study:

  • Finance
  • Accounting
  • Economics
  • Business Administration
  • Risk Management

Experience Requirements

Typical Experience Range:

  • 1–5 years in collections, credit recovery, debt management, or related financial services roles.

Preferred:

  • 3+ years of direct collections experience in banking, consumer finance, lending, or utility billing with demonstrable performance against recovery KPIs and familiarity with regulatory compliance.
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