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Bill and Account Collectors

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 are 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 
Workforce Services Offices.


ADDITIONAL SOURCES OF INFORMATION

American Collectors Association (ACA)
ASAE Building
4040 W. 70th Street
Minneapolis, MN 55435-4199
(612) 926-6547
http://www.collector.com/

National Association of Credit Management (NACM)
8815 Centre Park Drive
Columbia, MD 21045
(410) 740-5560
http://www.nacmservices.com/Pages/resources/resourcesframe.html

Allied Finance Adjusters Conference, Inc.
P.O. Box 16196
Pensacola, FL 32507
(800) 843-1232
(904) 457-3620
http://www.alliedfinanceadjusters.com/index.html


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.