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.
| 1. | Receive payments and post amounts paid to customer accounts. |
| 2. | Locate and monitor overdue accounts, using computers and a variety of automated systems. |
| 3. | Record information about financial status of customers and status of collection efforts. |
| 4. | Locate and notify customers of delinquent accounts by mail, telephone, or personal visits to solicit payment. |
| 5. | Confer with customers by telephone or in person to determine reasons for overdue payments and to review the terms of sales, service, or credit contracts. |
| 6. | Advise customers of necessary actions and strategies for debt repayment. |
| 7. | Persuade customers to pay amounts due on credit accounts, damage claims, or nonpayable checks, or to return merchandise. |
| 8. | Sort and file correspondence, and perform miscellaneous clerical duties such as answering correspondence and writing reports. |
| 9. | Perform various administrative functions for assigned accounts, such as recording address changes and purging the records of deceased customers. |
| 10. | Arrange for debt repayment or establish repayment schedules, based on customers' financial situations. |
| 11. | Negotiate credit extensions when necessary. |
| 12. | Trace delinquent customers to new addresses by inquiring at post offices, telephone companies, credit bureaus, or through the questioning of neighbors. |
| 13. | Notify credit departments, order merchandise repossession or service disconnection, and turn over account records to attorneys when customers fail to respond to collection attempts. |
| 14. | Drive vehicles to visit customers, return merchandise to creditors, or deliver bills. |
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