Working in the Collections Industry
Debt collection is the practice of actively pursuing recovery of payment for loans, goods, and services. It exists in all industries ranging from healthcare, large credit card companies, to small business owners and state and federal government.
Any time there is an extension of credit there is a creation of debt. Debt collection occurs when the terms and conditions, as set forth in the contract that governs the agreement between the two parties, creditor and borrower, are breached. The most common breach of contract occurs when repayment fails to meet the agreed schedule. The means used to collect debt are mail, telephone, and in some instances, modern communication, such as e-mail. Provided it is a viable solution, legal remedies are also available. A debt collector will use computer systems to track accounts, and document conversations, as well as document payment arrangements, make adjustments, order correspondence sent, and document correspondence received. Debt collections work can be both challenging and rewarding.
The majority of jobs in debt collection are call center based. The collector spends the majority of their day performing telephone calls and skip tracing. There are also jobs available that require the debt collector to have specialized knowledge and skills. Some companies may employ one or more individuals whose responsibilities focus entirely on skip tracing, asset searching, and other research as needed. As with many industries, most companies will have room for the collector to advance to the management level. In addition, medical collection jobs may require a candidate to have knowledge of medical billing. Business to business and first-party collection departments will generally hire collectors who also have an accounting or a background in customer service. When a company must turn to legal remedies to resolve delinquent accounts, they will often hire a law firm dedicated to creditors’ rights to handle the matter. The attorneys and paralegals within the law firm must have an advanced knowledge of debt collections.