Debt collectors, or bill and account collectors’ main task is to try to collect payment on overdue bills. Most bill collectors are hired out by third party collection agencies. The creditor, or the company or business that is owed the debt, will often employ outside of the company; especially if their accounts receivable department is small.
Other collectors work directly under the original creditors; these guys are called in house collectors. Usually these are companies that are based on finance like credit card and mortgage companies, healthcare providers or utility companies.
No matter what organization that they employed by, the goals of bill collectors are the same. First, they’re called upon to locate consumers or businesses that are in debt, and let them know that they are delinquent. Usually this will be over the phone, but sometimes they send letters.
When debtors (people in debt) move without leaving a forwarding address, bill collectors may check with telephone companies, the post office, credit bureaus and former neighbors to get the new address. This practice is called “skip tracing.” Collectors who do skip tracing will use computer systems to automatically track when people or companies change their addresses or contact information on any of their open accounts.
Once the bill collectors find the debtors they tell them about the overdue accounts and ask for payment. If it’s needed they’ll go over the terms of sale, or credit contracts. A good bill collector is a sneaky one. They’ll probably use their listening skills to try to figure out the cause of the delinquency.
Usually they will have the authority to offer a repayment plan or some other help to make it easier for people to pay their bills. A lot of the time they are able to find solutions to the financial problem. They may even offer useful advice or refer debtors to debt counselors.
To Be Continued…
is a New York debt collection agency.