Collection Agent

Collection agents are employed by businesses, financial institutions, governments and collection agencies to get payments from customers or clients who default on loans, credit card debts or other financial obligations.

Collection agents may have a variety of job titles such as:

• credit adjuster
• bill or claims collector
• collection clerk or officer
• recovery clerk or officer
• receivables control specialist
• accounts receivable analyst
• loan counsellor
• tax collector.

Small companies may hire part-time collection agents or assign the task of collection to an employee. Large companies usually hire a number of collection agents or contract a receivables management firm. For accounts that are difficult to collect, businesses may hire legal firms or contract private collection agencies.

Collection agents use tact and diplomacy when collecting overdue accounts to preserve a positive customer relationship with the business. They may use a variety of approaches such as:

• sending persuasive letters
• telephoning debtors or meeting with them to discuss overdue accounts
• arranging a repayment schedule based on the debtor's financial situation if the debtor cannot make a full payment
• using local directories, bureaus, registries and the Internet to locate people (sometimes called skip tracing).

They also may:

• keep records of payments manually or in a computer database
• prepare letters and statements of overdue accounts for mailing.

If debtors fail to respond to initial letters, collection agents usually follow up with other letters and phone calls. Most use 3 standard form letters:

• first a letter of reminder
• then a letter requesting contact
• finally a legal demand for payment (used only when appropriate).

Collection agents have access to computer databases and elaborate skip tracing methods for locating people who are difficult to find. Collection agencies usually are hired by businesses or organizations that have had no luck collecting on their own and are willing to pay a fee to get the money owed.

Collection agencies generally resolve about 40% of their debts through phone calls and letters. Payments not collected by agencies may be abandoned or, in some circumstances, legal proceedings may be instigated.

Collection agents work in offices. They may sit for long periods of time working at a computer and using the telephone. Since collection agents often phone people at home, they may work Saturdays or start later in the morning and work into the evening. Dealing with unpleasant, upset debtors can be stressful.

Collection agents need to possess:

• a high degree of motivation, initiative and perseverance
• the flexibility required to respond effectively to the unexpected
• the ability to negotiate with people courteously and effectively in difficult situations
• good verbal and written communication skills
• good listening skills
• good organizational skills
• the ability to work under stressful conditions, meet deadlines and not be offended by insults
• the ability to work in a team environment
• the ability to follow instructions and pay attention to details.

They should enjoy having clear rules and methods guiding their work, speaking with people in person or on the phone, and finding innovative ways to locate debtors and recover liabilities.

Collection agents are employed by many types of businesses including:

• retail and wholesale companies
• banks, credit card companies and other lending institutions
• hospitals
• insurance companies
• leasing firms
• property management companies
• trucking companies
• health clubs
• drilling, welding and other service suppliers
• utility companies
• government departments and agencies
• collection agencies.

With experience, collection agents in large organizations may advance to legal collections or supervisory positions. In some financial institutions, collection agent is considered an entry level position from which employees may advance.

Collection agents are part of the larger 2011 National Occupational Classification 1435: Collectors. In Alberta, 77% of people employed in this classification work in the following industries:

• Public Administration (PDF)
• Finance, Insurance, Real Estate and Leasing (PDF)
• Business, Building and Other Support Services (PDF).

The employment outlook (PDF) in this occupation will be influenced by a wide variety of factors including:

• trends and events affecting overall employment (especially in the industries listed above)
• location in Alberta
• employment turnover (work opportunities generated by people leaving existing positions)
• occupational growth (work opportunities resulting from the creation of new positions)
• size of the occupation.

Employment turnover is expected to increase as members of the baby boom generation retire over the next few years.

Credit Institute of Canada website: www.creditinstitute.org

Government of Alberta website, collector's licence information: www.servicealberta.ca/1244.cfm

For more information on career planning, education and jobs, visit the Alberta Learning Information Service (ALIS) website, call the Alberta Career Information Hotline toll-free at 1-800-661-3753 or 780-422-4266 in Edmonton, or visit an Alberta Works Centre near you.