The American debt collection has a market size of over $18 billion.
While debt collectors, who collect defaulted credit card debts, personal loans, and even utility bills, are the main actors in the industry, debt collection attorneys also play an important role. They help ensure the collection of debt is done in accordance with the relevant laws.
Do you want to know the requirements for being a debt collection attorney?
1. Get an Undergraduate Degree
To be a debt collection lawyer, start by earning an undergraduate degree in a relevant field. Undergraduate courses in business and accounting are the ideal options.
These courses will introduce you to the concepts of debt and consumer credit. A debt collector needs to be knowledgeable in finance, business, and even communication.
You can also take extra classes in business law to expand your industry knowledge.
2. Learn Debt Collection Law
You need to study and finish law after finishing your undergraduate degree. This subject will be covered by online MBL programs. You should also get a law license from the state’s bar.
Debt collection law is something that you will encounter throughout your career. Being familiar with laws and acts on debt collection will help you perform your duties. It will help you navigate through the collection processes and communicate with debtors.
Studying debt collection law will help you learn the debt collection process. It includes how you will contact the debtor. You will learn how to identify yourself, the agency, and the creditor to the debtor.
3. Gain Experience
Over 220,000 people were working as bill and account collectors in 2020. They work with a debt collection agency to recover payments on overdue utility bills.
You can gather experience by applying as an intern in a debt collection law firm. You can gain experience by collecting documents and contacting debtors. You can do this while pursuing your undergraduate degree.
A debt collection agency negotiated settlements with debtors. The creditor pays the debt collection agency a percentage of the amount collected. Some agencies also refer cases to attorneys for more complex debt cases.
Debt collectors can also work in government agencies. They help protect consumers from harassment from other debt collectors.
Communication and negotiation are essential skills of a debt collection attorney. The ability to research and recover financial information is also crucial. Working with people facing debt collection will give you more experience as a debt collector.
4. Debt Collection Attorney License
You will need proper licenses after gathering experience and studying debt collection laws. Each state may have different qualifications for acquiring a license.
Getting a license involves answering forms about your personal and financial information. These forms may depend on the state and the debt collection agency.
The licensing process is an essential part of being a debt collector. You can better understand the process of state licensing by reading this article for more info.
Be a Debt Collector Today!
Get your undergraduate degree, finish law school, and get a license from the state bar. Next is to gain relevant experience and get your debt collection license. These are the requirements for being a debt collection attorney.
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