Detailed Guide forBill and Account Collectors in Santa Clara CountyMay also be called: Payment Collectors; Collection Clerks; and Installment Agents
What Would I Do?
Bill and Account Collectors locate and contact debtors to recover money owed on past due accounts. Some Bill and Account Collectors are employed by third-party collection agencies; while others, known as in-house collectors, work directly for the original creditors, such as department stores, hospitals, or banks.
Collectors contact the debtor by mail or telephone. Initially, a reminder letter is sent. If there is no response, Bill and Account Collectors continue to mail letters and make phone calls requesting payment. After successfully making contact, Collectors remind the debtor that their account is past due. They may review the terms of the credit card, service, or loan contract agreement and remind the debtor that interest grows on unpaid balances. Sometimes, if the debtor agrees to immediately pay the debt, the interest will be waived. Collectors may have the ability to approve an extension of time, if one is requested. They also assist the customer with establishing repayment schedules that accommodate their financial circumstances. If the customer agrees to make a payment, the Collector follows up to confirm that payment is received. They also process in-coming payments and post amounts to customer accounts.
If the debtor's location is unknown, the Collector will initiate skip tracing activities to find the debtor. Skip tracing involves looking through telephone directories for the debtor's name, contacting post offices, credit bureaus, and the Department of Motor Vehicles. Collectors also interview people who may know the debtor in order to find them. Computer systems track when customers change their address or have activity on any of their open accounts.
If the debtor fails to respond to repayment requests, Bill and Account Collectors may initiate repossession actions or take action to stop the customer's service. The more difficult collection cases may be referred to an attorney for legal action.
Some of the tools used in this occupation include computers, headsets, personal digital assistants or organizers, and scanners.
Important Tasks and Related Skills
Each task below is matched to a sample skill required to carry out the task.
| View the skill definitions |
| Task | Skill Used in this Task |
|---|
| Receive payments and post amounts paid to customer accounts. | Clerical |
| Locate and monitor overdue accounts, using computers and a variety of automated systems. | Monitoring |
| Locate and notify customers of delinquent accounts by mail, telephone, or personal visits to solicit payment. | Information Ordering |
| Advise customers of necessary actions and strategies for debt repayment. | Customer and Personal Service |
| Persuade customers to pay amounts due on credit accounts, damage claims, or nonpayable checks, or to return merchandise. | Persuasion |
| Arrange for debt repayment or establish repayment schedules, based on customers' financial situations. | Economics and Accounting |
| Negotiate credit extensions when necessary. | Negotiation |
| Trace delinquent customers to new addresses by inquiring at post offices, telephone companies, credit bureaus, or through the questioning of neighbors. | Deductive Reasoning |
| Notify credit departments, order merchandise repossession or service disconnection, and turn over account records to attorneys when customers fail to respond to collection attempts. | Problem Sensitivity |
| Record information about financial status of customers and status of collection efforts. | Complex Problem Solving |
|
Skill Definitions
Below is a definition for each skill.
| View the tasks to skills list |
| Skill | Definition |
|---|
| Clerical | Knowledge of administrative and clerical procedures and systems such as word processing, managing files and records, stenography and transcription, designing forms, and other office procedures and terminology. |
| Monitoring | Monitoring/Assessing performance of yourself, other individuals, or organizations to make improvements or take corrective action. |
| Information Ordering | The ability to arrange things or actions in a certain order or pattern according to a specific rule or set of rules (e.g., patterns of numbers, letters, words, pictures, mathematical operations). |
| Customer and Personal Service | Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction. |
| Persuasion | Persuading others to change their minds or behavior. |
| Economics and Accounting | Knowledge of economic and accounting principles and practices, the financial markets, banking and the analysis and reporting of financial data. |
| Negotiation | Bringing others together and trying to reconcile differences. |
| Deductive Reasoning | The ability to apply general rules to specific problems to produce answers that make sense. |
| Problem Sensitivity | The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing there is a problem. |
| Complex Problem Solving | Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions. |
|
Working Conditions
In-house Bill and Account Collectors usually work in an office or call center environment. Offices are generally well lit and provide a comfortable work atmosphere. Workers spend most of their time on the phone tracking down and contacting people with debts. Therefore, the work can be stressful because some customers can become argumentative when questioned about unpaid bills. Collectors may also feel compelled to meet production targets for the amount of debt they are expected to recover.
Most Bill and Account Collectors work 40 hours a week. However, they are regularly required to work evenings and weekends, when it is usually easier to reach people. As a result, it is common for workers to work part time or flexible work schedules.
There has been little or no unionization of Bill and Account Collectors.
Will This Job Fit Me?
The job of a Bill and Account Collector may appeal to those who enjoy activities that involve following set procedures and routines. Bill and Account Collector occupations satisfy those with conventional interests. Conventional occupations involve working with data and details more than with ideas. Usually, there is a clear line of authority to follow. Those entering this field must have good communication skills. They need to be persistent, patient, and have good negotiation skills because they frequently deal with upset clients.
What Wages and Benefits Can I Expect?
In addition to the base wages, some companies offer bonus payments on the total dollar amount of debt recovered.
Wages
The median wage in 2020 for Bill and Account Collectors in California was $44,002 annually, or $21.15 hourly. The median wage for Bill and Account Collectors in San Benito and Santa Clara Counties was $51,776 annually, or $24.89 hourly. The median is the point at which half of the workers earn more and half earn less.
Benefits
Most Bill and Account Collectors may expect to receive benefits that include health insurance, vacation, and holidays.
What Do Local Employers Say About Benefits? Of the 17 employers in San Benito and Santa Clara Counties, almost all provide medical insurance, and most provide vacation and dental insurance benefits to Bill and Account Collectors who work full-time.
Percent of Employers Who Provide
Specific Benefits by Time Base |
|---|
| Benefit Type | Full-Time | Part-Time |
|---|
| Medical Insurance | 88% | 0% |
| Vacation | 76% | 6% |
| Dental Insurance | 76% | 0% |
| Sick Leave | 59% | 6% |
| Life Insurance | 59% | 0% |
| Vision Insurance | 59% | 0% |
| Retirement Plan | 35% | 0% |
| Disability Insurance | 18% | 0% |
| Paid Time Off Bank | 18% | 0% |
| No benefits | 6% | 18% |
|
Of the 15 employers surveyed who responded in San Benito and Santa Clara Counties, who provides medical benefits, most reported that they pay half or more of the cost of medical insurance for full-time, and none reported that they pay half or more of the cost of medical insurance for part-time Bill and Account Collectors.
Percent of Employers Who Paid Medical
Insurance by Portion Paid by Time Base |
|---|
| Portion Paid by Employer: | Full-Time | Part-Time |
|---|
| All | 13% | 0% |
| Half or more | 60% | 0% |
| Less than Half | 27% | 0% |
| None | 0% | 0% |
|
What is the Job Outlook?
Collectors play a vital role as cash flow is becoming increasingly important to companies, which are now placing greater emphasis on collecting unpaid debts sooner. Therefore, the workload for Collectors is expected to continue to increase as they seek to collect not only old debts, but ones that are more recent. Also, as more companies get involved in lending money and issuing their own credit cards, they will need to hire Collectors, because debt levels will likely continue to rise.
Hospitals and physicians' offices are two of the fastest growing industries that employ Collectors. With insurance reimbursements not keeping up with cost increases, the health care industry is seeking to recover more money from patients.
As opposed to other occupations, the demand for Collectors remains high during economic downturns, resulting from customers’ difficulty in paying their bills in a timely manner. As a result, job opportunities should be favorable. However, employment growth for in-house collectors may be somewhat restricted due to an increased use of third-party debt collectors.
Projections of Employment
In California, the number of Bill and Account Collectors is expected to decline between 2016 and 2026.
In San Benito and Santa Clara Counties, the number of Bill and Account Collectors is expected to decline between 2016 and 2026.
Estimated Employment and Projected Growth
Bill and Account Collectors |
|---|
Geographic Area
(Estimated Year-Projected Year) | Estimated
Employment | Projected
Employment | Numeric
Change | Percent
Change | Job
Openings |
|---|
California
(2016-2026) | 36,400 | 36,000 | -400 | -1.1 | 37,000 |
San Benito and Santa Clara Counties
(2016-2026) | 1,440 | 1,420 | -20 | -1.4 | 1,460 |
|
| View Projected Growth for All Areas |
How Do I Qualify?
Education, Training, and Other Requirements
Many employers prefer to hire applicants with a high school diploma or equivalent. Employers like to see the completion of some college courses such as accounting, computers, and mathematics. Community colleges and adult education also offer courses in bookkeeping, word processing, and computers that are helpful in getting a job as a Bill Collector.
Upon hire, employees usually receive on-the-job training to learn company policies and procedures under the guidance of a senior worker. Workers are also instructed in the laws governing the collection of debt as mandated by the Fair Debt Collection Practices Act, which applies to all third-party and some in-house collectors. This Act outlaws the harassment of debtors.
Experience
The amount and type of work experience required varies from company to company. However, employers prefer to hire workers with prior experience in positions involving public contact.
Early Career Planning
High school preparation courses in accounting, bookkeeping, computer technology, language arts, and mathematics are recommended.
Work Study Programs
Helpful training programs such as accounting, computer accounting, computer operations, computer science, general office occupations, and information processing are available through Regional Occupational Programs (ROP). To find an ROP program near you, go to the California Association of Regional Occupational Centers and Programs Web site.
Licensing and Certification
Repossession agency managers must obtain a license through the Department of Consumer Affairs. Applicants must be over 18 years of age with two years of experience as a repossession agency employee. In addition, they must pass a written examination and a fingerprint background check. The license is valid for two years.
Repossession agency employees working under the license of a qualified manager, must register with the Department of Consumer Affairs. Applicants must be over 18 years of age and pass a fingerprint background check. Registration is valid for two years. Contact the agency that issues the license for additional information. Click on the license title below for details.
Certification is not required by law. However, a number of organizations offer certifications that will enhance employment and advancement opportunities. For more information, go to the U.S. Department of Labor's Career InfoNet Web site and scroll down to "Career Tools." Click on "Certification Finder" and follow the instructions to locate certification programs.
Where Can I Find Training?
There are two ways to search for training information:
Contact the schools you are interested in to learn about the classes available, tuition and fees, and any prerequisite course work.
Where Would I Work?
The largest industries employing Bill and Account Collectors are as follows:
| Industry Title | Percent of Total Employment for Occupation in California |
|---|
| Business Support Services | 19.6% |
| Credit Intermediation & Related Activity | 11.5% |
| Management of Companies and Enterprises | 9.7% |
| General Medical and Surgical Hospitals | 4.8% |
| Merchant Wholesalers, Durable Goods | 4.8% |
|
What Employers Say...
The Employment Development Department surveyed 17 employers in San Benito and Santa Clara Counties which employ 187 Bill and Account Collectors. Here's what they had to say:
About Full-Time/Part-Time: Almost All of these firms employ full-time and some employ part-time Bill and Account Collectors.
About Work Experience: Of the 17 employers surveyed in San Benito and Santa Clara Counties, most require new hires to have prior work experience as Bill and Account Collectors. In the table below, percentages may not add to 100% since employers may select more than one time period.
How Much Work Experience
Do Employers Require? |
|---|
| More than 5 years | 8% |
| 25 to 60 months | 36% |
| 13 to 24 months | 36% |
| 1 to 12 months | 27% |
|
About Recruitment: Of the 17 employers surveyed in San Benito and Santa Clara Counties, many indicate it is moderately difficult to find applicants with experience who meet their minimum hiring requirements, while many indicate it is easy to find applicants without previous experience who meet their minimum hiring requirements to fill vacancies for Bill and Account Collectors.
About Hiring: Of the 17 employers surveyed in San Benito and Santa Clara Counties, most expect the number of Bill and Account Collectors they employ to remain stable during the coming year.
| Hiring Expectations |
|---|
| Expect Employment to Increase | 18% |
| Expect Employment to Remain Stable | 76% |
| Expect Employment to Decline | 6% |
|
About Vacancies: Of the 17 employers surveyed in San Benito and Santa Clara Counties, 53 percent hired Bill and Account Collectors during the past year. Of the hiring firms, 78 percent filled existing vacancies, 44 percent filled newly created positions, and 22 percent filled temporary assignments.
Finding a Job
Direct application to employers remains one of the most effective job search methods. Many schools operate placement centers for their students. Jobs may also be found through registration with temporary employment agencies and through classified advertisements in newspapers, trade publications, and Internet job listings. Online job opening systems include JobCentral at www.jobcentral.com and CalJOBSSM at www.caljobs.ca.gov.
To find your nearest One-Stop Career Center, go to Service Locator. View the helpful job search tips for more resources. (requires Adobe Reader).
Yellow Page Headings
You can focus your local job search by checking employers listed online or in your local telephone directory. Below are some suggested headings where you might find employers of Bill and Account Collectors.
- Billing Service
- Bill Paying Service
- Bookkeeping Service
- Collection Agencies
- Collection Bureau
- Credit Repair Service
- Credit Reporting Agencies
Find Possible Employers
To locate a list of employers in your area, go to "Find Employers" on the Labor Market Information Web site:
- Select one of the top industries that employ the occupation. This will give you a list of employers in that industry in your area.
- Click on "View Filter Selections" to limit your list to specific cities or employer size.
- Click on an employer for the street address, telephone number, size of business, Web site, etc.
- Contact the employer for possible employment.
Where Could This Job Lead?
Collectors who have a good record for collecting debts can earn promotions. 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. Also, Collectors may choose to enter self employment with other experienced Collectors.
Related Occupations
Below is a list of occupations related to Bill and Account Collectors with links to more information.
| Occupation | Occupational
Guide | Industry
Report | Occupational
Profile |
|---|
| Bookkeeping, Accounting, and Auditing Clerks | Guide | | |
| Claims Adjusters, Examiners, and Investigators | Guide | | |
| Credit Authorizers, Checkers, and Clerks | | | Profile |
| Customer Service Representatives | Guide | | |
| Eligibility Interviewers, Government Programs | | | Profile |
| Loan Interviewers and Clerks | | | Profile |
| Office Clerks, General | Guide | | |
Other Sources
These links are provided for your convenience and do not constitute an endorsement by EDD.
For the Career Professional
The following codes are provided to assist counselors, job placement workers, or other career professionals.
