Occupation Profile for Bill and Account Collectors
Locate and notify customers of delinquent accounts by mail, telephone, or personal visit to solicit payment. Duties include receiving payment and posting amount to customer's account; preparing statements to credit department if customer fails to respond; initiating repossession proceedings or service disconnection; keeping records of collection and status of accounts.
Signficant Points
- Almost 1 in 4 collectors works for a collection agency; others work in banks, retail stores, government, physicians’ offices, hospitals, and other institutions that lend money and extend credit.
- Most jobs in this occupation require only a high school diploma, though many employers prefer workers with some postsecondary training.
- Much faster than average employment growth is expected as companies focus more efforts on collecting unpaid debts.
Overview
| $29,050.00 | Median Annual Wage | 17,000 | Average Job Openings Per Year |
| 4.9 | Average Unemployment Percentage | 38.4 | Percentage That Completed High School |
| 434,000 | Employment Numbers in 2006 | 48.2 | Percentage That Had Some College |
| 534,000 | Employment Numbers in 2016 (est.) | 13.3 | Percentage That Went Beyond College Degree |
Sample Job Titles
Training
- These occupations usually involve using communication and organizational skills to coordinate, supervise, manage, or train others to accomplish goals. Examples include funeral directors, electricians, forest and conservation technicians, legal secretaries, interviewers, and insurance sales agents.
- Most occupations in this zone require training in vocational schools, related on-the-job experience, or an associate's degree. Some may require a bachelor's degree.
- Previous work-related skill, knowledge, or experience is required for these occupations. For example, an electrician must have completed three or four years of apprenticeship or several years of vocational training, and often must have passed a licensing exam, in order to perform the job.
- Employees in these occupations usually need one or two years of training involving both on-the-job experience and informal training with experienced workers.
Most employers require collectors to have at a least a high school diploma and prefer some customer service experience. Employers usually provide on-the-job training to new employees.
Education and training. Most bill and account collectors are required to have at least a high school diploma. However, employers prefer workers who have completed some college or who have experience in other occupations that involve contact with the public.
Once hired, workers usually receive on-the-job training. Under the guidance of a supervisor or some other senior worker, new employees learn company procedures. Some formal classroom training also may be necessary, such as training in specific computer software. Additional training topics usually include telephone techniques and negotiation skills. Workers are also instructed in the laws governing the collection of debt as mandated by the Fair Debt Collection Practices Act, which applies to all third party and some in-house collectors.
Other qualifications. Workers should have good communication and people skills because they need to speak to customers daily, some of whom may be in stressful financial situations. In addition, collectors should be computer literate, and experience with advanced telecommunications equipment is also useful.
Advancement. Collectors most often advance by taking on more complex cases. Some might become team leaders or supervisors. Workers who acquire additional skills, experience, and training improve their advancement opportunities.
Nature of Work
Bill and account collectors, often called simply collectors, keep track of accounts that are overdue and attempt to collect payment on them. Some are employed by third-party collection agencies, while others—known as in-house collectors—work directly for the original creditors, such as department stores, hospitals, or banks.
The duties of bill and account collectors are similar across the many different organizations in which they work. First, collectors are called upon to locate and notify customers of delinquent accounts, usually over the telephone, but sometimes by letter. When customers move without leaving a forwarding address, collectors may check with the post office, telephone companies, credit bureaus, or former neighbors to obtain the new address. The attempt to find the new address is called skip tracing. New computer systems assist in tracing by automatically tracking when customers change their address or contact information on any of their open accounts.
Once collectors find the debtor, they inform him or her of the overdue account and solicit payment. If necessary, they review the terms of the sale, service, or credit contract with the customer. Collectors also may attempt to learn the cause of the delay in payment. Where feasible, they offer the customer advice on how to pay off the debts, such as taking out a bill consolidation loan. However, the collector’s prime objective is always to ensure that the customer pays the debt in question.
If a customer agrees to pay, collectors record this commitment and check later to verify that the payment was made. Collectors may have authority to grant an extension of time if customers ask for one. If a customer fails to pay, collectors prepare a statement indicating the customer’s action for the credit department of the establishment. In more extreme cases, collectors may initiate repossession proceedings, disconnect the customer’s service, or hand the account over to an attorney for legal action. Most collectors handle other administrative functions for the accounts assigned to them, including recording changes of address and purging the records of the deceased.
Collectors use computers and a variety of automated systems to keep track of overdue accounts. In sophisticated predictive dialer systems, a computer dials the telephone automatically, and the collector speaks only when a connection has been made. Such systems eliminate time spent calling busy or nonanswering numbers. Many collectors use regular telephones, but others wear headsets like those used by telephone operators.
Work environment. In-house bill and account collectors typically are employed in an office environment, and those who work for third-party collection agencies may work in a call-center environment. Workers spend most of their time on the phone tracking down and contacting people with debts. The work can be stressful as some customers are confrontational when pressed about their debts. Still, some appreciate assistance in resolving their outstanding debt. Collectors may also feel pressured to meet targets for debt recovered in a certain period.
Bill and account collectors often have to work evenings and weekends, when it is easier to reach people. Many collectors work part time or on flexible work schedules, though the majority work 40 hours per week.
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