Bill and Account Collector
Bill and Account Collectors are professionals who communicate with individuals and businesses to collect payments on overdue debts, such as loans and bills. Working primarily in office environments that may resemble call centers, these collectors employ various methods to reach debtors, including phone calls and written correspondence. They often engage in "skip tracing" to locate debtors who may have changed contact information. A successful collector must possess strong problem-solving and negotiation skills, combined with the ability to empathize with debtors while pursuing payments on behalf of creditors.
Typically requiring a high school diploma, entry into this field does not necessitate specific prior experience, but relevant coursework in finance and communication can be beneficial. Although the occupation is experiencing a decline in job availability, opportunities may arise due to workforce turnover. Collectors often receive on-the-job training and may be asked to participate in coaching and mentoring newer employees. While the role can be demanding, it offers a chance to work with a diverse range of individuals and can include flexible work hours, including evening shifts, to accommodate debtor availability.
Bill and Account Collector
Snapshot
Career Cluster(s): Finance
Interests: Accounting, business, finance, solving problems, communicating with others, customer service
Earnings (Yearly Average): $44,250 per year $21.27 per hour
Employment & Outlook: -9% (Decline)
Entry-Level Education: High school diploma or equivalent
Related Work Experience: None
On-the-job-Training: Moderate-term on-the-job training
Overview
Sphere of Work. Bill and account collectors locate and contact individuals and businesses to collect payments on outstanding loans and bills. In some cases, they arrange for the repossession of merchandise. Entities and individuals who owe money to other people or businesses are called debtors. Creditors are entities or individuals to whom money is owed by debtors. While some merchants, banks, lenders, and other institutions may operate their own collection services, most bill and account collectors are employed by specialized collection agencies. Collection agencies represent creditors to whom debts are owed. Bill and account collectors usually report to a credit or collections supervisor. Some bill and account collectors may specialize in certain sectors, such as medical or automobile debt collection.
Work Environment. Bill and account collectors usually work in an office environment. In large collection agencies, the office might be arranged as a call center where each collector is equipped with a telephone headset connected to automated systems and a computer workstation.
Depending on the type of collection work being undertaken, some research may be required to locate debtors who have moved from their last known address and do not wish to be found. This involves tracking current contact information listed with other creditors, and even contacting the debtor’s family members, friends, and employers. This process is known as “skip tracing.”
Occupation Interest. Bill and account collections may attract individuals who have an interest in finance and credit, and who are skilled or find satisfaction in interacting with people. Strong problem-solving and negotiation skills are needed to help debtors formulate and commit to payment arrangements. The ability to convey empathy for the debtor while also assertively pursuing payment on behalf of the creditor can be extremely valuable in this job.
A Day in the Life—Duties and Responsibilities. Much of the bill and account collector’s day is spent locating and contacting debtors. Although much of this work is performed via telephone, for legal and practical reasons some collectors also write letters requesting payments.
When a collector is able to speak with a debtor, they will inquire about the debtor’s financial situation to assess their ability to pay their debt. The collector may be required to explain payment terms and conditions, to instruct people how to make payments, and to counsel debtors on how to seek help if they are experiencing financial hardship. They may work with lawyers and arrange for legal action to be undertaken against a debtor.
Bill and account collectors will likely receive continual coaching, training, and constructive criticism from their supervisors to improve their contact outcomes and negotiation techniques. Some collectors may be required to train and mentor others. In addition to debt collection duties, bill and account collectors will be required to participate in other office duties and activities, such as meetings and training sessions.
Bill and account collectors are likely to receive continual coaching and training and constructive criticism from their supervisors to improve their contact outcomes and negotiation techniques. Some collectors may be required to train and mentor others. In addition to debt collection duties, bill and account collectors will be required to participate in other office duties and activities, such as meetings and training sessions.
A bill and account collector’s duties are likely to occur within normal office hours, but longer or more flexible hours may be required at times. Some collection activities are scheduled in the evenings when people are more likely to be at home. Because of this, some part-time opportunities may be available.
Work Environment
Immediate Physical Environment. Office and call center settings predominate. Bill and account collectors in full-time employment generally work for small to large collections departments or dedicated agencies. Some bill and account collectors may work remotely from home using telecommunications technologies provided by their employer.
Human Environment. Bill and account collectors are required to communicate with people from diverse backgrounds over the telephone and in written communications. These communications are primarily about the collection of payments on outstanding debts. This demands a high degree of patience and assertiveness. Bill and account collectors generally perform their duties independently, but they are usually members of a larger team of collectors. Each debt collector must meet specific goals, such as the number of calls placed per hour or reaching a certain success rate of calls. Companies typically provide financial incentives to debt collectors who meet goals.
Technological Environment. Bill and account collectors use an assortment of telecommunications tools, from telephones to the Internet, as well as computer software such as word processing, spreadsheet, and database programs. They are likely to use office equipment such as scanning machines and photocopiers, since some of their duties include general administrative work.
Education, Training, and Advancement
High School/Secondary. High school students can best prepare for a career in bill and account collections by taking courses that develop numerical skills, such as accounting, bookkeeping, economics, and applied mathematics. To develop communication skills, students should consider studies in foreign languages. Subjects such as psychology, history, legal studies, and social studies may also assist the student to develop analytical and problem-solving skills. Extracurricular activities, such as debating, may also help the student advance their oral communication and negotiation skills. Students can also benefit from part-time customer service work, which will give them valuable experience with how to handle customers in a variety of situations.
Post-secondary. Bill and accounts collection is an occupation that accommodates graduates from a diverse range of disciplines. No specific educational qualifications are required for this profession, although a good understanding of the principles of money management and consumer credit management is likely to be valued by employers.
By 2024, automated calling systems had enabled collectors to handle additional accounts. Despite a sharp decline in the number of bill and account collector jobs, experts believed that about 17,000 jobs would be available from 2023 to 2033. These vacancies would be created by retiring workers and those who left the field to pursue another type of job.
Related Occupations
− Loan Clerk and Credit Authorizer
Bibliography
“Bill and Account Collectors.” Occupational Outlook Handbook, US Bureau of Labor Statistics, US Dept of Labor, 17 Apr. 2024, www.bls.gov/ooh/office-and-administrative-support/bill-and-account-collectors.htm. Accessed 28 Aug. 2024.
“43-3011 Bill and Account Collectors.” Occupational Employment Statistics, US Bureau of Labor Statistics, US Dept of Labor, 3 Apr. 2024, www.bls.gov/oes/current/oes433011.htm. Accessed 28 Aug. 2024.