What does a Collection Agent do?
A collections agent is responsible for communicating with clients to collect payment for their overdue bills and outstanding balances. Collections agents monitor and update a customer's account information in the system, offer repayment plans, manage billing disputes, negotiate sales terms, and maintain records of account resolution. They must evaluate customers' credit reports and delinquency levels to skip tracing priorities. A collections agent must have excellent communication and customer service skills to listen to customers' requests and initiate payment procedures.
Collection agent responsibilities
Collection agents play a crucial role in managing past due accounts, negotiating payment plans, and ensuring customer satisfaction. They utilize various tools, such as skip tracing and internet research, to locate delinquent customers and establish payment arrangements. In addition, they handle administrative tasks such as recording address changes and purging unresponsive accounts. As experts in their field, collection agents adhere to state and federal laws while providing exceptional customer service.
Here are examples of responsibilities from real collection agent resumes:
- Manage patient focuse reports, collection modules, provider/facility A/R, collections, patient discharge letters.
- Used computer GPS to locate vehicles.
- Input assignments and update clients via computer programs (RDN and PRIOS).
- Demonstrate professionalism and customer support while following FDCPA guidelines.
- Assist in preventing impending losses and increase profitability through negotiation and enforcement of schedule collection campaigns.
- Utilize effective negotiation skills by collecting payments from debtors of unpaid accounts via telephone and written communication.
- Submit additional information request by insurance companies such as medical records, primary/secondary insurance explanation of benefits (EOB).
- Provide customer service to current and past Comcast customers.
- Provide information regarding billing, service issues, and Comcast products.
Collection agent skills and personality traits
We calculated that 20% of Collection Agents are proficient in Customer Service, Payment Arrangements, and Delinquent Accounts. They’re also known for soft skills such as Listening skills, Negotiating skills, and Speaking skills.
We break down the percentage of Collection Agents that have these skills listed on their resume here:
- Customer Service, 20%
Provide customer service to each customer by identifying needs, clarifying information, researching every issue and providing solutions and/or alternatives.
- Payment Arrangements, 19%
Called Customer regarding past due account *Researched customer using skip trace and internet *Set-up forth coming payment arrangements and collection payment
- Delinquent Accounts, 7%
Locate and notify customers of delinquent accounts using computers and variety of automated systems.
- Debt Repayment, 6%
Recommended necessary strategies and arranged for debt repayment based on financial situations of the customer.
- Past Due Accounts, 5%
Contacted past due accounts for payment resolution; reviewed each account individually to determine eligibility for third party action.
- Debt Collection, 3%
Submitted statements of delinquencies to credit bureau and/or initiate repossession proceedings to law practice that specializes in debt collection.
Common skills that a collection agent uses to do their job include "customer service," "payment arrangements," and "delinquent accounts." You can find details on the most important collection agent responsibilities below.
Listening skills. One of the key soft skills for a collection agent to have is listening skills. You can see how this relates to what collection agents do because "collectors must pay attention to what debtors say when trying to negotiate a repayment plan." Additionally, a collection agent resume shows how collection agents use listening skills: "listened to customer's story and determined if payment arrangements could be made. "
Negotiating skills. Another soft skill that's essential for fulfilling collection agent duties is negotiating skills. The role rewards competence in this skill because "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." According to a collection agent resume, here's how collection agents can utilize negotiating skills in their job responsibilities: "secure payment arrangements by negotiating agreeable schedules with customers and update client accounts to reflect new information. "
Speaking skills. collection agents are also known for speaking skills, which are critical to their duties. You can see how this skill relates to collection agent responsibilities, because "collectors must be able to speak to debtors to explain their options and ensure that they fully understand what is being said." A collection agent resume example shows how speaking skills is used in the workplace: "presented debtors with multiple payment options, including setting up payment arrangements. "
The three companies that hire the most collection agents are:
- Southwest Credit Systems
77 collection agents jobs
- OnBrand24
5 collection agents jobs
- Radius4 collection agents jobs
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Compare different collection agents
Collection agent vs. Accounts receivable specialist
Accounts receivable specialists are members of the organization's finance or accounting department. They are responsible for managing the collection of payments for the company. They prepare official receipts and coordinate with account payable specialists from other companies with pending payables. They ensure that clients pay on time, and they also follow up on payments when necessary. They are responsible for checking whether the clients have already paid in full. Accounts receivable specialists are in charge of updating accounting records as well to ensure that client records are up to date.
These skill sets are where the common ground ends though. The responsibilities of a collection agent are more likely to require skills like "debt repayment," "debt collection," "overdue accounts," and "fdcpa." On the other hand, a job as an accounts receivable specialist requires skills like "patients," "data entry," "reconciliations," and "accounts receivables." As you can see, what employees do in each career varies considerably.
Accounts receivable specialists earn the highest salaries when working in the technology industry, with an average yearly salary of $43,571. On the other hand, collection agents are paid more in the finance industry with an average salary of $38,280.On average, accounts receivable specialists reach similar levels of education than collection agents. Accounts receivable specialists are 2.2% more likely to earn a Master's Degree and 0.1% less likely to graduate with a Doctoral Degree.Collection agent vs. Account specialist
An account specialist is responsible for reaching out to customers or potential clients through calls, emails, and other forms of correspondence to secure sales and strengthen business relations. An account specialist may also perform other tasks such as arranging appointment schedules with clients, providing price quotes and responding to further inquiries, process orders, generating sales leads, and handling complaints and resolving issues. Furthermore, an account specialist may also be involved in developing strategies, finding new opportunities, producing and completing necessary documents, and preparing reports, all in adherence to the company's policies and regulations.
Each career also uses different skills, according to real collection agent resumes. While collection agent responsibilities can utilize skills like "debt repayment," "debt collection," "overdue accounts," and "fdcpa," account specialists use skills like "patients," "account management," "powerpoint," and "data entry."
Account specialists may earn a higher salary than collection agents, but account specialists earn the most pay in the finance industry with an average salary of $47,336. On the other hand, collection agents receive higher pay in the finance industry, where they earn an average salary of $38,280.account specialists earn similar levels of education than collection agents in general. They're 3.1% more likely to graduate with a Master's Degree and 0.1% more likely to earn a Doctoral Degree.Collection agent vs. Account representative
Account representatives are employees who manage client accounts and act as the main contact of the clients they are handling. They maintain existing accounts by updating client details regularly. They also check up on clients to see if they are still satisfied with the products or services of the company. They also create new accounts by welcoming new clients and assisting them in their needs. Account representatives manage client inquiries and process client requests. They also address complaints and ensure that any challenges are mitigated and that clients remain with the company.
The required skills of the two careers differ considerably. For example, collection agents are more likely to have skills like "debt collection," "overdue accounts," "outbound collection calls," and "process payments." But a account representative is more likely to have skills like "patients," "patient accounts," "data entry," and "medicaid."
Account representatives earn the highest salary when working in the finance industry, where they receive an average salary of $38,433. Comparatively, collection agents have the highest earning potential in the finance industry, with an average salary of $38,280.account representatives typically earn similar educational levels compared to collection agents. Specifically, they're 2.1% more likely to graduate with a Master's Degree, and 0.0% more likely to earn a Doctoral Degree.Collection agent vs. Accounts receivable analyst
An Accounts Receivable Analyst provides accounts receivable support through monitoring all aspects of the collection of outstanding debts owed to a company. They check missing and unresolved payment issues, monitor overdue accounts, and prepare statements for managers.
Types of collection agent
Updated April 25, 2024
