BILL AND ACCOUNT COLLECTORS Occupational Guide Number 561 Interest Area 7 1997
THE JOB
BILL AND ACCOUNT COLLECTORS try to collect money owed on past due accounts. 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. Bill Collectors may initiate repossession actions or take action to stop service.
Series of letters are mailed to the debtor when a Bill Collector receives notice of an overdue account. Initially, a friendly reminder letter is written and mailed. Usually, a preliminary letter can obtain the overdue payment. When this fails, the Bill Collector continues to mail letters and to make phone calls requesting payment. Bill Collectors remain polite when making phone calls and try to encourage the debtor to make payment or to explain their circumstances. They also inform the debtor of interest charges that are being added to their overdue account. Sometimes, if the debtor agrees to immediately pay the debt, the interest will be waived. If the debtor's location is unknown, the Bill Collector will do skip tracing to find the debtor. They will look through telephone directories for the debtor's name and contact post offices and motor vehicle bureaus. Bill Collectors also interview people that may know the debtor in order to find them.
If reminder and request letters fail, then the Bill Collector sends an attorney demand letter to the debtor. This letter is usually sent by certified mail so the Bill Collector will know the debtor received the final demand. 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.
A Bill Collector at a collection agency follows up on the overdue account by sending the debtor a letter and making a phone call urging payment. Collection agencies recover most debts. Some require legal action and the agency will try to reach the debtor's assets to recover from the loss if the debtor still refuses to pay. Most large companies such as hospitals, banks, and student loan lenders use collection agencies to collect overdue accounts.
WORKING CONDITIONS
Bill Collectors work in an office setting and spend most of their time sitting behind a desk. Offices are well lighted and provide a comfortable atmosphere. Bill Collectors use a computer database to track calls and to view customer accounts. Because most of a Bill Collector's time is spent on the telephone, they use a telephone headset. Office size can range from a small business to a large collection agency.
EMPLOYMENT OUTLOOK
The following information is from the California Projections of Employment published by the Labor Market Information Division.
Estimated number of workers in 1993: 23,690 Estimated number of workers in 2005: 36,290 Projected Growth 1993-2005: 53% Estimated openings due to separations by 2005: 3,620
(These figures do not include self-employment nor openings due to turnover.)
Whether the economy is good or bad, Bill Collectors play a vital role. In a good economy, credit is available and people spend more. In a bad economy, there are more loan delinquencies because money is not readily available. It is important for a business to recover on overdue accounts in order to make a profit and to keep prices low.
WAGES, HOURS, AND FRINGE BENEFITS
Wages for Bill Collectors are determined by experience. Beginning Bill Collectors can earn $5.00 to $13.00 per hour. Those with some experience earn $5.25 to $14.00 per hour. Fully experienced Collectors can earn $6.00 to $15.00 per hour. Some companies offer a bonus based on the total dollars collected.
Bill Collectors work forty hours a week. Bill Collectors try to contact debtors at home or at work; therefore, hours can vary. An eight-hour shift can be from 11:00 am to 7:30 p.m. or from noon to 8:30 p.m. Bill Collectors often work on Saturdays. Part-time collectors usually work a four-hour shift. The hours are often flexible. National collection agencies have shifts to handle calls to the eastern and pacific time zones.
Fringe benefits may include paid vacations, holidays, sick leave, and health and dental insurance.
ENTRANCE REQUIREMENTS AND TRAINING
Applicants should have at least a high school education. Some employers like to see the completion of some college courses such as accounting, computers, and mathematics. High schools, adult education, and community colleges offer courses in word processing and computers that are helpful in getting a job as a Bill Collector.
Bill Collectors must be able to speak and write well. They need to be persistent, patient, and be able to maintain detailed records and have good negotiation skills to handle stressful situations since they frequently deal with angry clients.
ADVANCEMENT
Bill Collectors that have a good rating for collecting debts can earn promotions. Experienced Bill Collectors with a good education can advance to management or supervisory positions. College courses in accounting, mathematics, English, and computers can lead to more employment opportunities within this field. There also possibilities that a Bill Collector can open an agency with other experienced Collectors, especially since debt collection is a profitable business.
FINDING THE JOB
Those interested in a job as a Bill Collector should begin their job search at collection agencies, credit reporting companies, banks, and retail stores. Collection agencies and credit reporting companies can be found in the yellow pages under "Collection". Job seekers should look at classified ads in newspapers under headings such as "Collection" and "Billing". Job postings may also be available at local Employment Development Department Job Service offices.
ADDITIONAL SOURCES OF INFORMATION
American Collectors Association (ACA) ASAE Building 4040 W. 70th Street Minneapolis, MN 55435-4199 (612) 926-6547
National Association of Credit Management (NACM) 8815 Centre Park Drive Columbia, MD 21045 (410) 740-5560
Allied Finance Adjusters Conference (Allied) P.O. Box 16196 Pensacola, FL 32507 (800) 843-1232 (904) 457-3620
RELATED OCCUPATIONAL GUIDES
Bookkeeping, Accounting, & Auditing Clerks No. 26 Insurance Adjusters, Examiners, and Investigators No. 67 Clerks, General Office No. 295
OCCUPATIONAL CODE REFERENCES
DOT(Dictionary of Occupational Titles, 4th ed., Rev. 1) Collection Clerk 241.357-010 Collector 241.367-010 Repossessor 241.367-022
OES (Occupational Employment Statistics) System Bill and Account Collectors 535080
Source: State of California, Employment Development Department,
Labor Market Information Division, Information Services Group,
(916) 262-2162.
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