Bill and Account Collectors

Summary

Bill and account collectors try to recover payment on overdue bills.

Quick Facts: Bill and Account Collectors
2010 Median Pay	$31,310 per year $15.05 per hour
Entry-Level Education	High school diploma or equivalent
Work Experience in a Related Occupation	None
On-the-job Training	Moderate-term on-the-job training
Number of Jobs, 2010	401,700
Job Outlook, 2010-20	14% (About as fast as average)
Employment Change, 2010-20	57,200

What Bill and Account Collectors Do

Bill and account collectors, sometimes called collectors, try to recover payment on overdue bills. They negotiate repayment plans with debtors and help them find solutions to make paying their overdue bills easier.

Work Environment

Many bill and account collectors work in a call center for a third-party collection agency rather than the original creditor. Most work full time, and some have flexible schedules.

How to Become a Bill and Account Collector

Collectors must usually have a high school diploma and experience in a call center. A few months of on-the-job training is common.

Pay

The median annual wage of bill and account collectors was $31,310 in May 2010.

Job Outlook

Employment of bill and account collectors is projected to grow 14 percent from 2010 to 2020, as fast as the average for all occupations. However, prospects should be excellent because the need to replace workers who leave the occupation leads to many job openings.

Similar Occupations

Compare the job duties, education, job growth, and pay of bill and account collectors with similar occupations.

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Contacts for More Information

Learn more about bill and account collectors by contacting these additional resources.

What Bill and Account Collectors Do About this section

Collectors look up a person’s information on a computer while speaking to them over the phone.

Bill and account collectors, sometimes called collectors, try to recover payment on overdue bills. They negotiate repayment plans with debtors and help them find solutions to make paying their overdue bills easier.

Duties

Bill and account collectors typically do the following:

• Find consumers and businesses who have overdue bills
• Track down consumers who have an out-of-date address by using the Internet, post office, credit bureaus, or neighbors, a process called “skip tracing”
• Inform debtors that they have an overdue bill and try to negotiate a payment
• Go over the terms of sale or contract with the debtor, when necessary
• Learn the reasons for the overdue bills, which can help with the negotiations
• Offer credit advice or refer a consumer to a debt counselor, when appropriate

Bill and account collectors generally contact debtors by phone, although sometimes they do so by mail. They use computer systems to update contact information and record past collection attempts with a particular debtor. Keeping these records can help collectors with future negotiations.

The main job of bill and account collectors is finding a solution that is acceptable to the debtor and maximizes payment to the creditor. Listening to the debtor and paying attention to his or her concerns can help the collector negotiate a solution.

After the collector and debtor agree on a repayment plan, the collector continually checks to ensure that the debtor pays on time. If the debtor does not pay, the collector submits a statement to the creditor, who can take legal action. In extreme cases, this legal action may include taking back goods or disconnecting service.

Collectors must follow federal and state laws that govern debt collection. These laws require that a collector make sure they are talking with the debtor before announcing that the purpose of the call is to collect a debt. A collector also must give a statement, called “mini-Miranda,” which informs the account holder that they are speaking with a bill or debt collector.

Although many collectors work for third-party collection agencies, some work in-house for the original creditor, such as a credit-card company or a health care provider. The day-to-day activities of in-house collectors are generally the same as those of other collectors.

Collectors usually have goals they are expected to meet. Typically, these include calls per hour and success rates.

Work Environment About this section

Most bill and account collectors work in call centers for third-party collection agencies.

Bill and account collectors held about 401,700 jobs in 2010. Many work in a call center for a third-party collection agency rather than the original creditor. The following table shows the industries that employ the largest number of collectors in 2010: 

Whichever industry the collectors work in, most of their time is spent on the phone tracking down or negotiating with debtors. They also spend time on the computer, updating information and recording the results of their calls.

Collectors’ work can be stressful because many people become angry and confrontational when pressed about their debts. Collectors often face resistance while trying to do their job tasks. Successful collectors must face regular rejection and still be ready to make the next call in a polite and positive voice. Fortunately, some consumers appreciate help in resolving their outstanding debts and can be quite grateful.

Work Schedules

Most bill and account collectors work full time. Some collectors work flexible schedules, often calling people on weekends or during the evenings as they learn the best times to call.

How to Become a Bill and Account Collector About this section

Collectors are trained on the job.

Collectors must usually have a high school diploma and experience in a call center. A few months of on-the-job training is common.

Education

Most bill and account collectors are required to have a high school diploma, although some employers prefer applicants who have taken some college courses. Communication, accounting, and basic computer courses are examples of classes that are helpful for entering this occupation.

Training

Collectors usually get 1 to 3 months of on-the-job training after being hired. Training includes learning the company’s policies and computer software and learning the laws for debt collection in the Fair Debt Collection Practices Act, as well as their state’s debt collection regulations. If they do not have experience, they may also be trained in how to negotiate.

Work Experience

Some employers prefer applicants who have experience in call centers. At least 6 months to 1 year is common. However, some agencies want a collector to have several years of experience.

Important Qualities

Listening skills. When trying to negotiate a repayment plan, collectors must pay attention to what debtors say. Learning the particular situation of the debtors and how they fell into debt can help collectors suggest solutions.

Negotiating skills. Reconciling the differences between two parties (the debtor and the creditor) and offering a solution that is acceptable to both parties are the main aspects of a collector’s job.

Speaking skills. Collectors must be able to speak to debtors to explain their choices and ensure that they fully understand what is being said.

Pay About this section

The median annual wage of bill and account collectors was $31,310 in May 2010. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $21,320, and the top 10 percent earned more than $47,180. These wage data include money earned from commissions. They earn more when their collection rate is high.

As shown in the table below, the median annual wage for bill and account collectors working in the wholesale trade industry was $34,950, the highest among those industries employing much of the occupation.

Most bill and account collectors work full time. Some collectors work flexible schedules, often calling people on weekends or during the evenings as they learn the best times to call.

Job Outlook About this section

Employment of bill and account collectors is projected to grow 14 percent from 2010 to 2020, as fast as the average for all occupations.

The increasing efficiency of collectors is expected to slow employment growth for this occupation. New software and automated calling systems should increase productivity and allow collectors to handle more accounts.

In addition, some collection jobs will likely be sent to other countries where wages are lower. Nevertheless, creditors will continue to hire collectors in the United States because workers in this country tend to have greater success in negotiating with debtors.

Collectors in medical industries should see more job growth. As the cost of health care increases, the amount of medical debt that people incur is likely to rise as well. In addition, credit card companies are more commonly selling their debts to third-party agencies, likely also increasing job growth in the collections industry.

The following table shows the projected growth rates for bill and account collectors in the industries they are most commonly employed in:

Job Prospects

Job prospects should be excellent for this occupation. Workers frequently leave the occupation, which leads to numerous job openings. Prospects should be best for applicants who have worked in a call center before because some companies prefer to hire collectors with this kind of experience.

Unlike many other occupations, collections jobs usually remain stable during economic downturns. When the economy weakens, many consumers and businesses fall behind on their financial obligations, increasing the amount of debt to be collected. However, the success rate of collectors decreases because fewer people can afford to pay their debts.

Contacts for More Information About this section

For more information about bill and account collectors, visit

ACA International, The Association of Credit and Collections Professionals