What does a collections associate do?
A collections associate is an individual who acts as a liaison between creditors and customers to collect outstanding payments and negotiates debt payments. Collections associates must contact debtors through telephone to negotiate debt recovery and prevent recurring delinquency. They must enact debt recovery plans and collaborate with other departments on debt collection strategies. They are required to research publicly-available resources such as loan documents and background checks to track down defaulters. They must also initiate legal proceedings when debt recovery fails and send statements of delinquency to the credit bureau.
Collections associate responsibilities
Here are examples of responsibilities from real collections associate resumes:
- Plan and conduct sensitive HUMINT collection operations with an emphasis on managing and debriefing confidential sources.
- Perform follow up on Medicaid accounts.
- Execute assertive collection skills for inbound/outbound calls while meeting FDCPA guidelines.
- Call center collections following FDCPA guidelines for third party outbound collections.
- Perform collections activities on delinquent loan accounts to include repossessions, foreclosures, bankruptcy proceedings, and disposition of repossess assets.
- Position requires knowledge of Medicaid/Medicare formulary of cover drugs, the dosage and restrictions.
- Process check-by-phone and/or ACH requests accurately.
- Research all accounts utilizing Accurint, Lexis Nexis and several credit-reporting agencies if need.
Collections associate skills and personality traits
We calculated that 16% of Collections Associates are proficient in Phone Calls, Customer Service, and UPC. They’re also known for soft skills such as Listening skills, Negotiating skills, and Speaking skills.
We break down the percentage of Collections Associates that have these skills listed on their resume here:
- Phone Calls, 16%
Answered to incoming phone calls from clients who have questions or concerns related to their bills and corrected errors/refunds when applicable.
- Customer Service, 14%
Provided customer service to our clients verified customer account information Client account setup maintained and entered information into the company databases
- UPC, 10%
Collect merchandise UPC's into an MC55 scanner from various Retail outlets, then synchronize to corporate office.
- Time Card, 7%
Submitted time cards and expense information in accordance with CROSSMARK's established procedures and schedules.
- Retail Store, 7%
Collected and transmitted data gathered from designated retail stores primarily using a hand-held scanning device.
- Patients, 4%
Created patient accounts for new patients and maintained established patient accounts by updating demographic information.
Most collections associates use their skills in "phone calls," "customer service," and "upc" to do their jobs. You can find more detail on essential collections associate responsibilities here:
Listening skills. One of the key soft skills for a collections associate to have is listening skills. You can see how this relates to what collections associates do because "collectors must pay attention to what debtors say when trying to negotiate a repayment plan." Additionally, a collections associate resume shows how collections associates use listening skills: "communicated with company retail store personnel whether to extend or deny the credit limit originally given to the customer. "
Negotiating skills. Another soft skill that's essential for fulfilling collections associate 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 collections associate resume, here's how collections associates can utilize negotiating skills in their job responsibilities: "exceeded productivity measures and call quality standards to ensure business success while helping customers resolve delinquency by negotiating payment arrangements. "
Speaking skills. collections associates are also known for speaking skills, which are critical to their duties. You can see how this skill relates to collections associate 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 collections associate resume example shows how speaking skills is used in the workplace: "conducted outbound phone calls to delinquent cardholders presented customers with solutions to bring accounts current accepted check payments by phone"
The three companies that hire the most collections associates are:
- HD Supply11 collections associates jobs
- Victoria's Secret10 collections associates jobs
- BAYADA Home Health Care5 collections associates jobs
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Compare different collections associates
Collections associate 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.
These skill sets are where the common ground ends though. The responsibilities of a collections associate are more likely to require skills like "phone calls," "upc," "time card," and "retail store." On the other hand, a job as an account representative requires skills like "customer satisfaction," "cpt," "medical terminology," and "medical billing." As you can see, what employees do in each career varies considerably.
Account representatives earn the highest salaries when working in the finance industry, with an average yearly salary of $38,433. On the other hand, collections associates are paid more in the finance industry with an average salary of $44,424.The education levels that account representatives earn slightly differ from collections associates. In particular, account representatives are 0.7% more likely to graduate with a Master's Degree than a collections associate. Additionally, they're 0.5% less likely to earn a Doctoral Degree.Collections associate 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.
Each career also uses different skills, according to real collections associate resumes. While collections associate responsibilities can utilize skills like "phone calls," "upc," "time card," and "retail store," accounts receivable analysts use skills like "reconciliations," "pivot tables," "financial reports," and "credit memos."
Accounts receivable analysts earn a higher average salary than collections associates. But accounts receivable analysts earn the highest pay in the hospitality industry, with an average salary of $45,068. Additionally, collections associates earn the highest salaries in the finance with average pay of $44,424 annually.accounts receivable analysts earn similar levels of education than collections associates in general. They're 4.1% more likely to graduate with a Master's Degree and 0.5% less likely to earn a Doctoral Degree.Collections associate 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.
Some important key differences between the two careers include a few of the skills necessary to fulfill the responsibilities of each. Some examples from collections associate resumes include skills like "phone calls," "upc," "time card," and "retail store," whereas an account specialist is more likely to list skills in "account management," "powerpoint," "catheter," and "customer satisfaction. "
Account specialists earn the highest salary when working in the finance industry, where they receive an average salary of $47,336. Comparatively, collections associates have the highest earning potential in the finance industry, with an average salary of $44,424.Most account specialists achieve a similar degree level compared to collections associates. For example, they're 1.7% more likely to graduate with a Master's Degree, and 0.4% more likely to earn a Doctoral Degree.Collections associate vs. Recovery agent
Even though a few skill sets overlap between collections associates and recovery agents, there are some differences that are important to note. For one, a collections associate might have more use for skills like "phone calls," "customer service," "upc," and "time card." Meanwhile, some responsibilities of recovery agents require skills like "debt collection," "outbound calls," "tow truck," and "financial institutions. "
The energy industry tends to pay the highest salaries for recovery agents, with average annual pay of $45,507. Comparatively, the highest collections associate annual salary comes from the finance industry.In general, recovery agents hold similar degree levels compared to collections associates. Recovery agents are 1.6% less likely to earn their Master's Degree and 0.0% less likely to graduate with a Doctoral Degree.Types of collections associate
Updated January 8, 2025
