Collection agents use strategies such as letter writing, telephone calls and credit management to collect money owed on past due accounts.

Collection agents are employed by businesses, financial institutions, governments and collection agencies to get payments from customers or clients who default on loans, credit card debts or other financial obligations.

Collection agents may have a variety of job titles such as:

• credit adjuster
• bill or claims collector
• collection clerk or officer
• recovery clerk or officer
• receivables control specialist
• accounts receivable analyst
• loan counsellor
• tax collector.

Small companies may hire part-time collection agents or assign the task of collection to a particular employee. Large companies usually hire a number of collection agents or contract a receivables management firm. For accounts that are difficult to collect, businesses may hire legal firms or contract private collection agencies.

Collection agents use tact and diplomacy when collecting overdue accounts to preserve a positive customer relationship with the business. They may use a variety of approaches such as:

• sending persuasive letters
• telephoning debtors or meeting with them to discuss overdue accounts
• arranging a repayment schedule based on the debtor's financial situation if the debtor cannot make a full payment
• using local directories, bureaus, registries and the Internet to locate people (sometimes called skip tracing).

They also may:

• keep records of payments manually or in a computer database
• prepare letters and statements of overdue accounts to be mailed out.

If debtors fail to respond to initial letters, collection agents usually follow up with other letters and phone calls. Most use three standard form letters:

• first a letter of reminder
• then a letter requesting contact
• finally a legal demand for payment (used only when appropriate).

Collection agents have access to computer databases and elaborate skip tracing methods for locating people who are difficult to find. Collection agencies usually are hired by businesses or organizations who have had no luck collecting on their own and are willing to pay a fee to get the money owed.

Collection agencies generally resolve about 40 per cent of their debts through phone calls and letters. Payments not collected by agencies may be abandoned or, in some circumstances, legal proceedings may be instigated.

Collection agents work in offices. They may sit for long periods of time working at a computer and using the telephone. Since agents often phone people at home, they may work Saturdays or start later in the morning and work into the evening. Dealing with unpleasant, upset debtors can be stressful.

Most businesses and collection agencies prefer to hire collection agents who have at least a high school diploma. Some companies hire university or college students to work part-time as collection agents.

Collection agents usually are given on-the-job training. They must become familiar with local and provincial regulations governing collection procedures and learn how to negotiate with debtors. They need:

• investigative skills to locate debtors and their assets
• financial analysis skills to determine a debtor's capacity to pay
• sales skills to persuade debtors to pay the money they owe.

Collection agents are employed by many types of businesses including:

• retail and wholesale companies 
• banks, credit card companies and other lending institutions
• hospitals
• insurance companies
• leasing firms
• property management companies 
• trucking companies
• health clubs
• drilling, welding and other service suppliers 
• utility companies
• municipal, provincial and federal governments
• collection agencies.

With experience, collection agents in large organizations may advance to legal collections or supervisory positions. In some financial institutions, collection agent is considered an entry level position from which employees may advance to other positions.

Collection agents are part of the larger National Occupational Classification 1435: Collectors. In Alberta, 75 per cent of people employed in this classification work in the following industries:

• Management, Administrative and Other Support Services
• Finance, Insurance, Real Estate and Leasing
• Public Administration.

The employment outlook in this occupation will be influenced by a wide variety of factors including:

• trends and events affecting overall employment (especially in the industries listed above)
• location in Alberta
• employment turnover (work opportunities generated by people leaving existing positions)
• occupational growth (work opportunities resulting from the creation of new positions that never existed before)
• size of the occupation.

Employment turnover is expected to increase as members of the baby boom generation retire over the next ten years.

Collection agents' earnings vary considerably depending on their duties and qualifications, and the type of employer. Those who work for hourly wages may earn bonuses or commissions on the total dollars collected.

According to the 2007 Alberta Wage and Salary Survey, Albertans in the Collectors occupational group working part-time or full-time earned from $25,700 to $59,800 a year. The average salary was $39,700 a year.

Credit Institute of Canada website: www.creditedu.org