Recovery agents work with collection agencies to recover loans, late payments and mortgages. As a resident of Maryland, if you want to run a collection agency, then you need to hold a license to operate legally.
Basic requirements to obtain a license for collection agency:
- To start with, the applicant must prove that he or she has good moral character with no criminal history, has relevant business experience, and has general fitness to conduct business as a collection agency. Additionally, the applicant should also warrant that he or she would conduct business honestly, efficiently, and fairly without involving in misdemeanors.
- If a candidate has committed any act that could lead to suspension or reprimand, then the board would deny the application. However, a candidate whose application was denied can file a written request for a hearing.
- An applicant is required to execute a surety bond worth of $5,000 to be used in lieu of any damages that the applicant, his agency or his employees could commit by violating Maryland Consumer Debt Collection Act. Also, the total liability of the surety should not exceed the value of the bond. If it exceeds, then the agency must pay the additional amount to the Board to award the claimants.
- An applicant can hold more than one license, but he or she cannot operate in more than one place of business.
- The application for license would be rejected if an applicant has made any misstatement in the application, or has been convicted of felony, or has been involved in any misdemeanors, or has committed any fraud, or has engaged in any illegal activities, or has knowingly violated Maryland Consumer Debt Collection Act.
Individual recovery agents, however, don’t need a license to work for a collection agency or for a bank. Working as a recovery agent has its own challenges. For unemployed people who don’t have Bachelor’s degree, working as a recovery agent would be a wise choice, as it requires a candidate to have only high school diploma.
One of the most important factors that differentiate a successful recovery agent is hands-on practical experience in dealing with various cases. As you gain enough work experience as a recovery agent, you can enroll for online classes to broaden your chance of becoming a recovery manager. Apart from having high school diploma, to become a recovery agent in Maryland, you need to have work experience in the field of customer service.
In order to gain customer service experience, a candidate can gain work experience in any field that allows interaction with people as a part of the job. In fact, collection agencies, financial institutions, and banks look for hands-on customer service experience as eligibility criteria for hiring recovery agents.