Criminal Justice Career Option: Bill and Account Collector
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 their new address. This is called "skiptracing."
Once collectors find the debtor, they inform them 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 collector's objective is always to ensure that the customer first 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 this for the credit department of the establishment. In more extreme cases, collectors may initiate repossession proceedings, service disconnections, or hand the account over to an attorney for legal action. Most collectors handle other administrative functions for the accounts assigned to them. This may include 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.
Employment
Bill and account collectors held about 400,000 jobs in 2000. About 1 in 6 collectors work for collection agencies. Many others work in banks, department stores, government, hospitals, and other institutions that lend out money and extend credit.
Job Outlook
Employment of bill and account collectors is expected to grow faster than the average for all occupations through 2010, as the level of consumer debt continues to rise and as more companies seek to improve their debt collection by contracting with third-party collection agencies. Hospitals and physician's offices are two of the fastest growing areas requiring collectors. With insurance reimbursements not keeping up with cost increases, the healthcare industry is seeking to recover more money from patients. Government agencies also are using collectors more to collect on everything from parking tickets to child-support payments and past-due taxes. An increasing number of mergers between collection agencies may reduce the overall growth in the number collectors, as small, less automated agencies are bought, resulting in a bigger, more efficient firm. 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, success at getting people to repay their debts is better when the economy is good.