Bill Collection 101
If the person in debt agrees to pay, the bill collector will record this commitment and will check up later to make sure that the payment was made. If a debtor does not pay, the collector will draw up a statement about their delinquency for the credit department of whatever company they are working for. In extreme cases, debt collectors may request repossession, hand over the account to a lawyer or disconnect service.
Collectors must be careful to abide by the Federal and State procedures that apply due to the fact that people’s financial problems have the capacity to be a sensitive issue. The Federal Trade Commission says that a collector must positively identify the person who owes money before they can announce that the purpose of the call is to collect debt.
The collections agent will then read a prepared statement, which is also known as a “mini-Miranda” that lets the debtor know that they are in fact a collections agent.
Collectors also must follow the state laws that say how they must proceed. Now, a large portion of agencies utilize electronic systems to assist debt collectors when it comes to remembering all of the regulations and laws regarding each call.
Debt collectors use computers and an assortment of automated systems in their jobs. Companies will keep track of their accounts by using computers, and debt collectors are able to keep track of past collection attempts and other information in notes that are kept on the computer. As with most call centers, collectors use headsets instead of regular phones. Automatic dialing lets bill collectors work efficiently and quickly and with no chance of dialing the wrong number. Typically, in house bill and account collectors work in an office environment, people who work for a third party agency may work in a call center type environment.
The work has the capacity to be stressful; people get confrontational when they are asked about their debts. The best collectors have to face rejection regularly, but still be ready to make their next call in a positive voice. Fortunately for them, some customers appreciate help in resolving their debts.
Mallory Megan is employed by a debt collection company. Also she composes articles on business, finance, consumer spending and collection agencies.
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