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A collection worker's main job is to persuade people to pay bills that are past due. The procedure is generally the same in both collection firms and businesses that employ collection workers. The duties of the various workers may overlap, depending on the size and nature of the company.
When routine billing methods—monthly statements and notice letters—fail to secure payment, the collection worker receives a bad-debt file. This file contains information about the debtor, the nature and amount of the unpaid bill, the last charge incurred, and the date of the last payment. The collection worker then contacts the debtor by phone or mail to request full or partial payment or, if necessary, to arrange a new payment schedule.
If the bill has not been paid because the customer believes it is incorrect, the merchandise purchased was faulty, or the service billed for was not performed, the collector takes appropriate steps to settle the matter. If, after investigation, the debt collector finds that the debt is still valid, he or she again tries to secure payment.
In cases where the customer has not paid because of a financial emergency or poor money management, the debt collector may arrange a new payment schedule. In instances where the customer goes to great or fraudulent lengths to avoid payment, the collector may recommend that the file be turned over to an attorney.
When all efforts to obtain payment fail, a collection worker known as a repossessor may be assigned to find the merchandise on which the debtor still owes money and return it to the seller. Such goods as furniture or appliances can be picked up in a truck. To reclaim automobiles and other motor vehicles, the repossessor might be forced to enter and start the vehicle with special tools if the buyer does not surrender the key.
In large agencies, some collection workers specialize as skip tracers. Skip tracers are assigned to find debtors who "skip" out on their debts—that is, who move without notifying their creditors so that they don't have to pay their bills. Skip tracers act like detectives, searching telephone directories and street listings and making inquiries at post offices in an effort to locate missing debtors. Increasingly such information can be found through online databases (some agencies subscribe to a service to collect this information). Skip tracers also try to find out information about a person's whereabouts by contacting former neighbors and employers, local merchants, friends, relatives, and references listed on the original credit application. They follow every lead and prepare a report of the entire investigation.
In some small offices, collection workers perform clerical duties, such as reading and answering correspondence, filing, or posting amounts paid to people's accounts. They might offer financial advice to customers or contact them to inquire about their satisfaction with the handling of the account. In larger companies credit and loan collection supervisors might oversee the activities of several other collection workers.