About Bill Collectors

Significant Points

- About 1 in 5 collectors works for a collection agency; others work in banks, retail stores, government, physicians’ offices, hospitals, and other institutions that lend money and extend credit.
- Most jobs in this occupation require only a high school diploma, though many employers prefer workers with some postsecondary training.
- Faster-than-average employment growth is expected as companies focus more efforts on collecting unpaid debts.

Working Conditions

In-house bill and account collectors typically are employed in an office environment, while those who work for third-party collection agencies may work in a call-center environment. Workers spend most of their time on the phone tracking down and contacting people with debts. The work can be stressful as some customers can be confrontational when pressed about their debts, although some appreciate assistance in resolving their outstanding debt. Collectors may also feel pressured to meet targets for the amount of debt they are expected recover in a certain period.

Bill and account collectors often have to work evenings and weekends, when it usually is easier to reach people. As a result, it is not uncommon for workers to work part time or on flexible work schedules, though the majority work 40 hours per week.

Training, Other Qualifications, and Advancement

Most bill and account collectors are required to have at least a high school diploma. However, employers prefer workers who have completed some college or who have experience in other occupations that involve contact with the public. Workers should have good communication skills and be computer literate; experience with advanced telecommunications equipment is also useful.

Once hired, workers usually receive on-the-job training. Under the guidance of a supervisor or some other senior worker, new employees learn company procedures. Some formal classroom training also may be necessary, such as training in specific computer software. Additional training topics usually include telephone techniques and negotiation skills. Workers are also instructed in the laws governing the collection of debt as mandated by the Fair Debt Collection Practices Act (FDCPA), which applies to all third party and some in-house collectors.

Workers usually advance by taking on more duties in the same occupation for higher pay or by transferring to a closely related occupation. Many companies fill supervisory positions by promoting individuals from within the organization, and workers who acquire additional skills, experience, and training improve their advancement opportunities.

Employment

Bill and account collectors held about 456,000 jobs in 2004. About 1 in 5 collectors works for a collection agency. Many others work in banks, retail stores, government, physician’s offices, hospitals, and other institutions that lend money and extend credit.

Earnings

Median hourly earnings of bill and account collectors were $13.20 in May 2004. The middle 50 percent earned between $10.87 and $16.28. The lowest 10 percent earned less than $9.22, and the highest 10 percent earned more than $20.10. In addition to a basic rate of pay, many bill and account collectors earn commissions based on the amount of debt they recover.