Debt collector vs collections/accounts receivable

The differences between debt collectors and collections/accounts receivables can be seen in a few details. Each job has different responsibilities and duties. It typically takes 6-12 months to become both a debt collector and a collections/accounts receivable. Additionally, a collections/accounts receivable has an average salary of $38,949, which is higher than the $33,865 average annual salary of a debt collector.

The top three skills for a debt collector include customer service, outbound calls and payment arrangements. The most important skills for a collections/accounts receivable are customer service, patients, and delinquent accounts.

Debt collector vs collections/accounts receivable overview

	Debt Collector	Collections/Accounts Receivable
Yearly salary	$33,865	$38,949
Hourly rate	$16.28	$18.73
Growth rate	-8%	-8%
Number of jobs	23,385	30,523
Job satisfaction	-	-
Most common degree	High School Diploma, 34%	Bachelor's Degree, 40%
Average age	46	46
Years of experience	12	12

What does a debt collector do?

Debt collectors are also known as collection agencies and are responsible for recovering past due debts. Most of them are hired by companies to collect debt either for a fee or a percentage of the total amount recovered. Also, some debt collectors buy delinquent debts at a discount and seek to collect the debt's full amount. They have many strategies to collect debts, including calling debtor's phones, sending letters, and even visiting them at their home. However, if debtors fail to pay their due, debt collectors can either update the debtor's credit report or sue them over debt. Once sued and debtors ignore court hearings and lose by default, results could either be garnishment on debtor'debtors' wages or levies on their bank.

What does a collections/accounts receivable do?

An officer for collections/accounts receivable is in charge of a company's financial activities, ensuring that they receive payment from clients. They primarily focus on overseeing all billing and invoices, processing and verifying all receipts and rendered services, maintaining an accurate record of all transactions, producing reports and presentations, reviewing account and payment histories, and ensuring the accuracy of all processes involving the matter. Furthermore, should there be any complex issues, it is essential to reach out to a manager or a supervisor right away.

Debt collector vs collections/accounts receivable salary

Debt collectors and collections/accounts receivables have different pay scales, as shown below.

	Debt Collector	Collections/Accounts Receivable
Average salary	$33,865	$38,949
Salary range	Between $26,000 And $43,000	Between $30,000 And $49,000
Highest paying City	San Francisco, CA	Boston, MA
Highest paying state	California	Connecticut
Best paying company	Mayor Ethan Berkowitz	Apollo Global Management
Best paying industry	Construction	Finance

Differences between debt collector and collections/accounts receivable education

There are a few differences between a debt collector and a collections/accounts receivable in terms of educational background:

	Debt Collector	Collections/Accounts Receivable
Most common degree	High School Diploma, 34%	Bachelor's Degree, 40%
Most common major	Business	Business
Most common college	-	-

Debt collector vs collections/accounts receivable demographics

Here are the differences between debt collectors' and collections/accounts receivables' demographics:

	Debt Collector	Collections/Accounts Receivable
Average age	46	46
Gender ratio	Male, 30.7% Female, 69.3%	Male, 25.3% Female, 74.7%
Race ratio	Black or African American, 12.2% Unknown, 4.0% Hispanic or Latino, 20.0% Asian, 3.4% White, 59.9% American Indian and Alaska Native, 0.5%	Black or African American, 12.0% Unknown, 4.1% Hispanic or Latino, 20.1% Asian, 3.8% White, 59.4% American Indian and Alaska Native, 0.5%
LGBT Percentage	8%	8%

Differences between debt collector and collections/accounts receivable duties and responsibilities

Debt collector example responsibilities.

Prevent impeding loss and increasing profitability through negotiation and enforcement of schedule collection campaigns, consistently achieving high success standards.
Work with FHA, obama programs at the time.
Educate customers on ways to get medical assistance such as Medicaid, Medicare etc.
Prevent foreclosure by putting people on repayment plans, submitting requests for modifications, or deed in lieu.
File Medicaid, Medicare and commercial claims consisting of PPO discounts, nurse practitioner discounts, humanitarian discounts, etc.
Maintain security and confidentiality of company and client information, following FDCPA regulations.

Collections/accounts receivable example responsibilities.

Plan and conduct sensitive HUMINT collection operations with an emphasis on managing and debriefing confidential sources.
Work accounts receivable for Medicaid verification and payments.
Work remittance advice from Medicaid ensuring accuracy of payments.
Research and obtain extensive knowledge of FDCPA debt recovery laws and assist in recovering commercial debt from organizations.
Communicate effectively with patients, physicians, hospital staff, and insurance representatives to ensure accuracy in claims processing.
Review claims to determine if process correctly and if necessary, direct patients to contact insurance companies regarding additional benefit questions.

Debt collector vs collections/accounts receivable skills

Common debt collector skills

Customer Service, 9%
Outbound Calls, 9%
Payment Arrangements, 8%
Delinquent Accounts, 8%
Credit Card Payments, 6%
FDCPA, 5%

Common collections/accounts receivable skills

Customer Service, 21%
Patients, 6%
Delinquent Accounts, 5%
Credit Card Payments, 5%
Past Due Accounts, 5%
Customer Accounts, 5%

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Debt Collector vs Collections/Accounts Receivable

Updated January 8, 2025

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