Bill and Account Collectors

Career summary

Bill and account collectors may also be called collections specialists, collection representatives, skip tracers, loan loss recovery collectors, or bill or debt collectors.

Bill and account collectors contact debtors to inform them of the overdue amount. If necessary, they go over the terms of the sale, service, or credit contract with the customers. Collectors try to learn why the payment is late. When debtors are unemployed or have other debts, collectors may provide credit counseling. In addition, they try to work out payment plans with debtors.

When customers agree to pay, collectors note this in the records and check that the payments are made. If customers do not pay, collectors may turn the account over to a lawyer. Sometimes collectors have the debtors’ services disconnected or belongings repossessed if payments are not made.

Collectors often need to locate debtors who moved and do not leave a new address. They check with the post office, telephone companies, credit bureaus, or former neighbors to obtain a debtor's new address. This process is called skip tracing. Once they find debtors, collectors update their addresses in the database or file, and contact them.

Many collectors handle administrative tasks for their accounts. For example, they keep records of their contacts with debtors. Some fill out daily reports of their actions. In some companies, collectors receive the payments and post them to the accounts.

Related careers

This career is part of the Finance cluster of careers.

Related careers include:

• Bank Tellers
• Billing Clerks
• Credit Checkers and Authorizers
• Customer Service Representatives
• General Office Clerks
• Government Benefits Interviewers
• Insurance Policy and Claims Clerks
• Interviewing Clerks
• License Clerks
• Loan Clerks
• New Accounts Clerks
• Order Clerks
• Payroll and Timekeeping Clerks
• Receptionists

Job duties

Task list

The following list of tasks is specific to bill and account collectors.

• Write or call debtors, encouraging them to pay.
• Talk to debtors. Find out why they are not making payments.
• Create a payment plan with the customer or offer advice on how to pay off the debt.
• Collect payments and record amounts to customer accounts.
• Review terms of the sale or contract with debtors.
• Track down debtors' new addresses when necessary. Check with the post office, family members, or neighbors.
• Visit customers, return merchandise, or deliver bills in person.
• Notify credit departments, repossession agencies, and lawyers if customers fail to pay.
• Disconnect services or repossess belongings if payments are not made.
• Update and track customer accounts using computers.
• Perform clerical duties, such as filing records and writing letters.

Common work activities

Bill and account collectors perform the following tasks. These tasks are common to many careers.

• Use computers
• Organize, plan, and prioritize work
• Document and record information
• Communicate with supervisors, peers, or subordinates
• Resolve conflicts and negotiate with others
• Get information needed to do the job
• Establish and maintain relationships
• Perform administrative tasks
• Make decisions and solve problems
• Identify objects, actions, and events
• Monitor events, materials, and surroundings
• Communicate with people outside the organization
• Update and use job-related knowledge
• Process information

Work requirements

Working conditions

In a typical work setting, bill and account collectors:

Interpersonal relationships

• Have a high level of social contact.
• Deal with unpleasant, angry, or rude people daily.
• Are often in situations where there is a disagreement with debtors.
• Write letters, memos, and e-mail weekly.
• Communicate with debtors by phone everyday.
• Work with others as part of a collection team.

Physical work conditions

• Often work indoors when making phone calls and writing letters. Occasionally work outdoors when searching for information about debtors.
• Work within two feet of others, such as during meetings.

Work performance

• Must fully complete and be exact in their work. Errors could lose money for business customers.
• Repeat the same physical or mental activities during the workday.
• Can make most decisions without talking with a supervisor first.
• Can set some tasks and goals without talking to a supervisor.
• Often make decisions that affect the credit history of others.
• Meet strict deadlines weekly.

Hours/travel

• Work a regular 40-hour week.
• May work nights and weekends to locate debtors.

Physical demands

Bill and account collectors frequently:

• Sit for long periods of time.

It is important for bill and account collectors to be able to:

• Understand the speech of another person.
• Speak clearly so listeners can understand.
• See details of objects that are less than a few feet away.

It is not as important, but still necessary, for bill and account collectors to be able to:

• See details of objects that are more than a few feet away.
• Use fingers to grasp, move, or assemble very small objects.
• Hear sounds and recognize the difference between them.
• Focus on one source of sound and ignore others.
• See differences between colors, shades, and brightness.

Skills and abilities

Bill and account collectors need to:

Communicate

• Listen to others and ask questions.
• Speak clearly so listeners can understand.
• Understand spoken information.
• Understand written information.
• Write clearly so other people can understand.
• Read and understand work-related materials.

Reason and problem solve

• Analyze ideas and use logic to determine their strengths and weaknesses.
• Develop rules that group items in various ways.
• Concentrate and not be distracted while performing a task.
• Notice when something is wrong or is likely to go wrong.

Manage oneself, people, time, and things

• Manage the time of self and others.
• Check how well one is learning or doing something.

Work with people

• Persuade others to approach things differently.
• Be aware of others' reactions and understand the possible causes.
• Look for ways to help people.
• Solve problems by bringing others together to discuss differences.

Education and training

Educational programs

The programs of study listed below will help you prepare for the occupation or career cluster you are exploring.

Programs of study to consider

• Accounting Technology and Bookkeeping
• Data Entry and Processing
• Finance
• Office Support

Training

To work as a bill or account collector, you typically need to:

• have a high school diploma or equivalent; and
• complete moderate-term, on-the-job training.

Education after high school

No formal education is required beyond high school. However, college course work is helpful if you wish to advance to management.

Knowledge of a language other than English can be helpful. This is because you will contact people who do not speak English as their primary language.

On-the-job training

The length of training varies by the employer and industry. In general, bill and account collectors receive up to one month of on-the-job training. Some receive up to one year of training.

Training may include lectures, videotapes, role-playing, and hands-on experience. You learn about skip tracing and the firm's billing procedures. You also learn communication and negotiating skills. You may also become certified as a Professional Telephone Collector and study the Federal Fair Debt Collection Act. Finally, you learn to use the firm's computer and telephone systems.

Helpful high school courses

You should take a general high school curriculum that meets the state's graduation requirements. You will be required to take both math and science classes to graduate.

Helpful electives to take in high school that prepare you for this career include:

• Computer Applications
• Consumer Law
• Foreign Language
• Office Procedures
• Personal Finance
• Public Speaking

The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.

You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career. Here are examples of activities and groups that may be available in your high school or community.

Things to know

Applicants for bill and account collector positions do not need previous experience in this area. However, experience in a bank, credit bureau, or credit department of a business is useful. In addition, experience dealing with people in difficult situations is helpful.

Tips

Course work in psychology may prove useful. Knowledge of the city or geographic area is helpful, especially when trying to locate people. Previous experience as a retail sales clerk or telemarketer can be helpful, and sharpening your math, English, computer, and ten-key skills is also recommended. Basic business courses are helpful for advancement.

Costs to workers

Workers may wish to join a professional association, which may have annual dues.

Job listings

Listed below are links to job categories from the National Labor Exchange that relate to this career. Once you get a list of jobs, you can view information about individual jobs and find out how to apply. If your job search finds too many openings, or if you wish to search for jobs outside of Washington, you will need to refine your search.

• Bill and Account Collectors 

To get a listing of current jobs from the WorkSource system, go to the WorkSource website .

Wages

#In Washington, the average entry-level wage for bill and account collectors is $12.94 per hour ($2,242 per month).

#Updated ES wage info 07.16 sd

Although many collectors receive only a salary, some also receive commissions or bonuses. This extra pay usually is linked to the number of cases collectors close. Pay varies with the employer's size, location, and type. The worker's education, experience, and responsibility also affect wages.

Bill and account collectors who work full time usually receive benefits. Common benefits are sick leave, paid vacation, and health insurance.

Employment and outlook

Washington outlook

The table below provides information about the number of workers in this career in various regions. It also provides information about the expected growth rate and future job openings.

National employment

Major employers:

• Banks and credit card companies
• Credit reporting and collection agencies
• Doctors' offices

National outlook

Demand for billing and account collectors is expected to decline. Automation has slowed growth in this occupation. In addition, consolidation in the collection industry in recent years has limited job growth.   

Most occupations need fewer workers when the economy is poor. However, bill and account collectors is just the opposite. When the economy is bad, fewer people can pay their bills. Thus, more companies need collectors to contact debtors.

Job prospects are expected to be excellent due to high turn over in this occupation.

Other resources

ACA International - The Association of Credit and Collection Professionals 
PO Box 390106
Minneapolis, MN 55439-0106
952.926.6547

Consumer Data Industry Association 
1090 Vermont Avenue NW, Suite 200
Washington, DC 20005
202.371.0910

International Association of Commercial Collectors 
4040 West 70th Street
Minneapolis, MN 55435
800.859.9526
952.925.0760

References

Career cluster

• Finance

Career path

• Conventional (Business Operations)

O*Net  occupation

• Bill and Account Collectors (43-3011.00) 

O*Net job zone 

• Job Zone 2 - Some preparation needed. Some previous work-related skill, knowledge, or experience may be helpful in these occupations, but usually is not needed.

DOT occupations

• Collection Clerk (241.357-010) 
• Collector (241.367-010) 
• Repossessor (241.367-022) 

Strong Interest Inventory

• Credit Manager

Holland occupational cluster

• Conventional/Enterprising/Social

COPSystem

• Clerical