What is a primary duty of a collections manager?

The primary duty of a collections manager is to collect outstanding debts while adhering to legal standards. This role is crucial in the collections industry, as it involves not only pursuing debts owed to a company or organization but doing so in a manner that complies with relevant laws, such as the Fair Debt Collection Practices Act (FDCPA). These legal guidelines are designed to protect consumers from abusive and unfair collection practices. A collections manager must ensure that their team's collection efforts do not violate these regulations, maintaining ethical standards in the pursuit of debts.

In this capacity, a collections manager may oversee collection strategies, manage staff involved in debt recovery, and implement policies that promote compliance with legal obligations. This focus on legal standards ensures that the organization can effectively recover debts while minimizing the risk of litigation or reputational harm.

Other options reflect misconceptions about the role. For instance, ensuring that a debtor feels uncomfortable does not align with ethical collection practices and could lead to complaints or legal issues. Making credit decisions is typically the responsibility of a credit manager or similar role, not a collections manager. Additionally, preventing consumers from borrowing money is not within the scope of a collections manager's duties, as their focus is on collecting debts rather than influencing lending practices.