Bill and Account Collectors

Summary

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 try to recover payment on overdue bills. They negotiate repayment plans and help people find solutions to make it easier to pay their overdue bills.

Duties

Bill and account collectors typically do the following:

• Find consumers and businesses who have overdue bills
• Track down people who have an out-of-date address by using online, postal, credit bureau, and personal sources—a process known as “skip tracing”
• Inform people that they have an overdue bill and try to negotiate a payment
• Explain the terms of sale or contract, when necessary
• Learn the reasons for the overdue bills, which can help with the negotiations
• Offer credit advice or refer people to a debt counselor, when appropriate

Bill and account collectors generally contact people directly to notify them of unpaid bills. They update contact information and record past collection attempts. Keeping these records can help collectors with future negotiations.

The main job of bill and account collectors is to help negotiate a solution that is acceptable to the debtor and maximizes payment to the creditor. After the two parties agree on a repayment plan, the collector regularly checks to ensure that the debtor pays on time. If the debtor does not pay, the collector submits a statement to the creditor, who may take legal action. In extreme cases, this legal action includes repossessing goods or disconnecting service.

Collectors must follow federal and state laws that govern debt collection. These laws require that collectors 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. Specific rules may vary by industry.

Collectors usually have goals they are expected to meet. Typically, these include a daily quota of calls 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 196,500 jobs in 2023. The largest employers of bill and account collectors were as follows:

Many collectors work in a call center for a third-party collection agency rather than for the original creditor. In all industries, they may spend most of their time on the phone tracking down or negotiating with people who have unpaid bills. They also use computers and databases to update information and record the results of their calls.

Collectors’ work can be stressful because some people may become angry and confrontational when pressed about their debts. Collectors must be able to face rejection regularly and still be ready to make the next call in a polite and positive manner.

Work Schedules

Most bill and account collectors work full time. Some work shifts that include weekends or evenings.

How to Become a Bill and Account Collector About this section

Collectors are trained on the job.

Bill and account collectors typically need at least a high school diploma to enter the occupation, and they receive training on the job.

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. Communications, accounting, and basic computer courses are examples of classes that are helpful for entering this occupation.

Training

Bill and account collectors typically receive training after being hired. This on-the-job training includes instruction on computer software, federal debt-collection laws (in the Fair Debt Collection Practices Act), and state debt-collection regulations. Collectors also may be trained in negotiation techniques.

Important Qualities

Communication skills. Collectors must be able to explain repayment options and ensure that people fully understand what is being said.

Customer-service skills. Bill and account collectors must be patient and empathetic when talking to people about their overdue bills.

Detail oriented. These workers must follow specific debt-collection rules, and they must be precise when keeping records of their collection attempts.

Listening skills. Collectors must pay attention to what debtors say when trying to negotiate a repayment plan. Learning about a debtor’s situation and how they fell into debt can help collectors suggest solutions.

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

Pay About this section

The median annual wage for bill and account collectors was $44,250 in May 2023. 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 $31,960, and the highest 10 percent earned more than $62,360.

In May 2023, the median annual wages for bill and account collectors in the top industries in which they worked were as follows:

Most bill and account collectors work full time. Some work shifts that include weekends or evenings.

Job Outlook About this section

Employment of bill and account collectors is projected to decline 9 percent from 2023 to 2033.

Despite declining employment, about 17,000 openings for bill and account collectors are projected each year, on average, over the decade. All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.

Employment

Continued use of enhanced software and automated calling systems is expected to increase productivity and allow collectors to handle more accounts. This technology will allow more collections work to be done with fewer employees. However, the need to collect various types of debt, including student, credit card, and mortgage debt, should create some demand for bill and account collectors.

State & Area Data About this section

Occupational Employment and Wage Statistics (OEWS)

The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area.

• Bill and account collectors

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.org. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

CareerOneStop

CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

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

O*NET

Bill and Account Collectors