While team building is a widely understood concept, there are often misconceptions on building the perfect debt collection team. The development and the best ways to build a team of debt collectors who can meet both creditor client goals and consumer goals simultaneously isn’t as easy as ensuring your team is polite and courteous.
Ed Lovallo, Alliant Capital Management’s Director Of Operations, has spent nearly 20 years in the collections industry working with management teams and collections organizations to build competent, compliant, and trustworthy debt collectors that not only meet the needs of agency clients but also their consumers.
Thanks for joining us Ed! Let’s kick it off with a light warm up—What are the foundational elements of operational training for debt collectors?
Lovallo: [Laughs] Certainly a light opening question. I’d say operational training is the backbone of any successful collections team. It ensures that collectors are well-versed in the company’s processes and systems, understand the regulatory landscape, and are able to effectively manage their daily tasks.
At its core, operational training should cover several key areas including your team understanding the basic collections process, the extra training needed for systems and tools compliance training, and the always important information regarding the FDCPA and TCPA. These aspects are the fundamentals for all operators and serve as the backbone of all our training methods.
I think what people overlook is the time it takes for updates on systems and tools. Familiarity with the collection management software, CRM systems, and any automated tools is crucial for efficiency and takes the most time.
We often get bogged down with compliance training but, to be honest, FDCPA and TCPA training, while vital, is actually pretty easy to manage with clear rules sheets for every call. It helps that we screen and monitor calls for any compliance issues.
Lastly, I think people often overlook performance metric training. I’ve found it’s vital that our team understands how their performance is measured, such as recovery rates and compliance adherence, and how it helps collectors focus on achieving both client and consumer goals.
When it comes to consumers, what should be the focus of consumer contact training?
Lovallo: Consumer contact training is essential because it directly impacts the relationship between the collector and the consumer. Effective training in this area should focus on communication skills that foster trust and cooperation, rather than confrontation. I know that’s pretty basic, but it’s the truth. Every interaction needs to be rooted in communication, not misunderstanding.
We do this in three key ways: Empathy training, basic communication training, and, of course, de-escalation techniques that we hope our collectors never have to exercise beyond the basics.
For empathy and listening skills, we focus on how collectors should be trained to listen actively and empathize with consumers’ situations. This approach can often lead to more constructive dialogues and better outcomes. Which leads into basic communication skills.
Communication training should emphasize the importance of clarity in explaining debt details, repayment options, and legal rights. Miscommunication can lead to misunderstandings or even disputes. And when misunderstandings do happen, de-escalation techniques save the day.
Not every call will go smoothly, so collectors must be prepared to handle frustration or anger calmly and professionally. This includes knowing how to de-escalate tense situations and keep the conversation productive.
How does emotional conduct training contribute to a successful collections team?
Lovallo: Much like the communications aspect, emotional conduct training is about building resilience and professionalism in collectors. Collections can be a stressful job, so it’s essential that collectors learn to manage their own emotions and respond appropriately to the emotions of others.
This training typically covers:
Emotional Intelligence (EI), where collectors should understand the basics of EI, such as recognizing their own emotional triggers and managing them effectively; Stress Management Techniques, where practical strategies for managing stress, such as deep breathing, short breaks, or even internal support systems, can help maintain mental well-being; and Positive Attitude Reinforcement, where encouraging a positive outlook and a solution-focused approach helps collectors stay motivated and maintain a constructive attitude, which is crucial for achieving long-term success in collections.
These three aspects make up our emotional conduct training and help keep our collectors grounded, even during the tough calls where nothing seems to go right.
Time for the big question— how can technology be applied to improve the effectiveness of debt collection teams & training?
Lovallo: Technology obviously plays a pivotal role in modern debt collection. It is streamlining processes, enhancing communication, and providing valuable insights through data analytics, but it is also the foundational aspect of all modern collections training.
We spent a great deal of time teaching our collectors about emerging AI technologies, data analytics aspects, and digital payment platforms to ensure that every aspect of the job is properly trained. Because payment technology and AI analytics are on the rise, we need to ensure they are ready for every aspect of emerging technologies.
Automated dialing systems and AI-driven communication tools can help optimize contact rates and personalize interactions based on consumer data but they also can confuse collectors if they are not properly prepared for the data they create.
When we leverage analytics to understand consumer behavior patterns, we can better help collectors tailor their approaches, improving both compliance and recovery rates. Not to mention the fact that offering secure, user-friendly digital payment options can significantly increase the ease and frequency of consumer repayments leading to fewer confrontational calls with our team in the first place.
Finally for you Ed, what are the key aspects of regulations and operations training in collections?
Lovallo: This has been a fun interview, thank you! Like I mentioned earlier about regulations, they are actually the most straightforward part of collections training because it’s the most expected part of training. Regulations and operations training is crucial to ensure that all collectors operate within legal frameworks while also meeting operational goals but they also serve as the backbone of every organization in our industry.
When training regulatory compliance, for example, training should cover federal, state, and local laws, as well as any industry-specific regulations. Our new collectors come in understanding this and are eager to learn any specific details for the job.
It gets a bit trickier when you add in ethical practices. We spent a good deal of time emphasizing ethics in collections and have seen how it fosters a culture of respect and integrity. Collectors should understand the importance of honest communication and fair practices, as well as FDCPA and TCPA regulations.
And really, the last major thing is pretty obvious but I’ll say it anyway—keep educating your staff and yourself. The regulatory environment is constantly evolving, so ongoing training is necessary to keep collectors up-to-date on the latest laws and best practices.
About Alliant Capital Management
Alliant Capital Management is a professional debt collection company that provides recovery services for creditors. With decades of experience in delivering compliant and affordable debt collection services, Alliant partners with consumers to reach amicable solutions that lead toward financial wellness. Alliant capitalizes on its role as the intermediary between clients and delinquent account holders. The team strives to amicably resolve accounts while creating success for both parties through respectful, transparent, and honest communication.
As members of both Receivables Management Association International and ACA International, Alliant is committed to providing the best possible experience for consumers. Its memberships help Alliant remain current with the increasingly complex and regulated accounts receivable industry. Alliant’s corporate values of accountability, integrity, open communication, service excellence, and teamwork guide its work. Alliant Capital Management is a solution-focused, goal-directed organization, prioritizing both informed compliance and strategic performance.
