Bill and account collectors, 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 collectorsÓ—work directly for the original creditors, such as department stores, hospitals, or banks.
The duties of bill and account collectors are similar in the many different organizations in which they are employed. 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.Ó
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 by taking out a bill consolidation loan. However, the collectorÕs 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 indeed made. Collectors may have authority to grant an extension of time if customers ask for one. If a customer fails to respond, collectors prepare a statement indicating the customerÕs action for the credit department of the establishment. In more extreme cases, collectors may initiate repossession proceedings, disconnect the customerÕs 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 addresses and purging the records of the deceased.
Collectors use computers and a variety of automated systems to keep track of overdue accounts. Typically, collectors work at video display terminals that are linked to computers. 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.
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Employment of bill and account collectors is expected to grow faster than the average for all occupations through 2012. Cash flow is becoming increasingly important to companies, which are now placing greater emphasis on collecting bad debts sooner. Thus, the workload for collectors is up as they seek to collect, not only debts that are relatively old, but ones that are more recent. Also, as more companies in a wide range of industries get involved in lending money and issuing their own credit cards, they will need to hire collectors, because debt levels will inevitably rise. Hospitals and physiciansÕ offices are two of the fastest-growing areas requiring collectors. With insurance reimbursements not keeping up with cost increases, the health-care industry is seeking to recover more money from patients. Government agencies also are making more use of collectors to collect on everything from parking tickets to child-support payments and past-due taxes. Finally, the Internal Revenue Service (IRS) is looking into outsourcing the collection of overdue Federal taxes to third-party collection agencies. If the IRS does outsource, more collectors will be required for this large job.
Despite the increasing demand for bill collectors, an increasing number of mergers between collection agencies may result in fewer collectors being hired. Small, less automated agencies are being bought by larger, more computerized firms, resulting in greater productivity. Contrary to the pattern in most occupations, employment of bill and account collectors tends to rise during recessions, reflecting the difficulty that many people have in meeting their financial obligations. However, collectors usually have more success at getting people to repay their debts when the economy is good.
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Career information on bill and account collectors is available from:
(Information on working conditions, training requirements, and earnings appears in the introduction to financial clerks .)
This page is for those specifically being harassed by debt collectors beyond the scope of the law. I was fortunate enough to work with very caring professionals who looked at everyone as a member, not a debtor. This was not internal debt collectors at banks or loan companies but third party debt collectors working for collection agencies. It's a great alternative to paying lawyers or credit repair companies to essentially do what you can do for yourself. Take advantage of some of our other articles that are free to the public or check out other services we offer.
Summary of: http://www.carreonandassociates.com/articles/newbreedcollections.html
Claim Representatives. Insurance companies investigate claims, negotiate settlements, and authorize payments to claimants. Claim representatives do this work. Insurance Processing Clerks. Welfare Eligibility Workers and Interviewers.
Summary of: http://www.jobbankusa.com/ohb/ohb125.html
Customers that are late in paying their bills are called debtors. Bill Collectors try to locate and contact debtors to recover money owed on credit cards, car loans, mortgage loans, utility bills, student loans, medical care, and even taxes. They may use the telephone, the mail, or make personal visits to contact the debtor. If the search is successful, they attempt to collect the amounts overdue, make arrangements for repayment, update payment records, and advise the customer of what actions to take. If the letters and telephone calls do not obtain payment from the debtor, the account is turned over to a Bill Collector at a collection agency.
Summary of: http://www.calmis.cahwnet.gov/file/occguide/BILLCOLL.HTM
When people agree to buy a good or service, they basically are signing a contract. So when a person does not pay their fair share, a contract is broken. Failing to pay a bill often means that companies raise their prices to keep their profits. When contacting debtors, collectors inform them of the overdue amount. In addition, they try to work out payment plans with debtors.
Summary of: http://www.iseek.org/sv/13000.jsp?id=100021
And increasingly, business collectors are expanding globally, offering their services internationally. Other agencies are honing their competitive edge in managing accounts for small- to medium-sized companies or working debt at an earlier stage of delinquency. "Outsourcing is becoming more critical than traditional debt collections,Ó Herer says. Bankruptcy recovery services Yes 2. Partnership Houston Buys debt, fraud control, customer service, operator service, and relay services Central America, Europe, and South America 3.
Summary of: http://www.collectionsworld.com/jun_art3.htm
Some are employed by third-party collection agencies, while othersÑknown as "in-house collectorsÓÑwork directly for the original creditors, such as department stores, hospitals, or banks. First, collectors are called upon to locate and notify customers of delinquent accounts, usually over the telephone, but sometimes by letter. Where feasible, they offer the customer advice on how to pay off the debts, such as by taking out a bill consolidation loan. In more extreme cases, collectors may initiate repossession proceedings, disconnect the customerÕs service, or hand the account over to an attorney for legal action. Many others work in banks, retail stores, government, hospitals, and other institutions that lend money and extend credit.
Summary of: http://www.collegegrad.com/careers/admin06.shtml
As companies seek to streamline operations by shedding unnecessary layers, they are giving greater thought to the role of credit and collections within critical business processes. The feeling was that credit was more a part of sales and marketing than it was of finance, because we were very involved in the deal making and search for new customers. Neither of these things will happen if the different functions involved are isolated. In addition, their customers enjoyed having a single contact at London Fog for dealing with all their order and billing issues. Credit managers have a lot less interest in topics like budgets, payroll, cost variances, taxes and other reporting issues that dominate finance department meetings.
Summary of: http://www.bcfm.com/financial_manager/credittug.htm
As a commercial collection agency and asset recovery firm we know we're measured by the results we provide. As a rapidly growing commercial collection agency, A/R Outsourcing, and debt recovery firm, we treat each client as if it was our only client. Commercial collection agencies are looking to distinguish themselves in a market faced by industry consolidation and the expansion of consumer agencies moving into commercial collections. They're offering a broader range of services -- outsourcing tops the list -- and leveraging new technology to land and retain clients. As more businesses use computers and data networks, their overall telecommunications costs are rising rapidly.
Summary of: http://www.summitrecovery.com/collectionagency.htm
Bill collectors try to collect money owed on past-due bills. It is bill collectors who track down debtors and persuade them to pay. To begin the process of debt collection, collectors first try to find and notify customers, politely, that their account is delinquent. They may not threaten or repeatedly harass debtors, and they must be clear and truthful about what action will be taken if the debt isn't paid. To find out more, check out the Fair Debt Collection page on the FTC's website.
Summary of: http://www3.ccps.virginia.edu/career_prospects/briefs/A-D/BillCollectors.shtml
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 in the many different organizations in which they are employed. First, collectors are called upon to locate and notify customers of delinquent accounts, usually over the telephone, but sometimes by letter. In more extreme cases, collectors may initiate repossession proceedings, service disconnections, or hand the account over to an attorney for legal action. Collectors use computers and a variety of automated systems to keep track of overdue accounts.
Summary of: http://www.umsl.edu/services/govdocs/ooh20022003/ocos143.htm