Collection work is both frustrating and stressful, says Michelle Dunn.
But she adds, "it is sometimes rewarding as well."
Dunn owns a collection agency in New Hampshire. She says the job can be
both frustrating and stressful when creditors dodge your calls or scream at
you. "It can be very frustrating to just be ignored," she says.
"I get very excited when I get a response from a debtor that I could not
get to respond at first."
She uses some tricks of the trade to get those responses.
"I sometimes stamp the outside of envelopes with something like 'confidential'
or 'personal.' If you hand write it on the envelope instead of typing
it, or use a stamp rather than running it through a postage meter, these are
things that will get a debtor to open your letter. Once they open it, if you
can grab their attention and get them to respond, you're halfway there,"
she says.
"Another satisfying aspect of the job is when you get a call or note from
a debtor thanking you for how you handled their account and letting them make
payments. I have received letters from a debtor with a final payment that
said, 'Thank you for not just treating me like a number.'"
Dunn now runs her own agency in order to spend more time with her family.
She started out in the accounts receivable department of another company and
graduated into collections there.
"I had gone to college for accounting and was so interested in credit and
collections that I continued to read and learn more about it and then was
promoted to credit manager," she says.
She worked for a few different companies and then started her own agency
from her home. "I am very satisfied. I love my job and my work."
Steve Rapaport of New York also owns an agency and started out as a collector.
When he was a college student majoring in business, he attended a business
seminar and ran into a friend there who offered him a part-time job at his
agency. He's been in the business ever since.
How does he deal with the frustrations of angry debtors? Very patiently.
"The first thing you're taught is not to take it personally," he says.
Communication skills are naturally important. "You have to learn to listen
to what each party is asking for and come back with the proper response."
He doesn't like a lot of the negative publicity his field gets in the
media. "It's a professional service that there is a need for."
In fact, contrary to the media stereotypes that sometimes portray collection
techniques as little more than strong-arm tactics, he sees what he does as
"acting as a mediator." The goal is to get a satisfactory result for both
parties, if possible.
The need for bill collectors arises from the need in modern society for
credit. Geoff Wilkinson is general manager of a credit institute. "Credit
is the lubricant that enables the wheels of commerce to turn," he says.
"Without the availability of credit, it would be difficult, if not impossible,
to purchase homes, automobiles, furniture, major appliances and other modern
necessities. Without credit, our banking system would cease to exist."
And when you buy something on credit, the idea is to pay it back. "The
providing of credit implies trust on the part of the person providing the
credit and responsibility on the part of the borrower who promises to abide
by the terms under which the credit was obtained," says Wilkinson.
"Credit management is both an interesting and challenging career, although
it is not an exact science. Rather, it is something that requires a deep understanding
of human nature along with a corresponding knowledge not only of finance,
but also of other facets of business."
Kecia Kesler runs a family collection business in Kansas. "It is only in
the last few years that a career in the collection industry has become popular
or sought after. Previously, family business was the main reason to become
a bill collector," she says. "In my case, it fell into my lap and I started
as a collector."
She didn't finish her education until she had a few years of experience,
but found the business management courses helpful. She's now the CEO
with a staff of 13, compared to two when she started in 1993. She also has
plans to go to law school to handle the legal work for her agency.
Although being a collection clerk may be too stressful for some people,
Kesler believes most of her employees are satisfied. "We have very little
turnover, so I am certain my collectors are happy here."
In this field, there is a concrete sign of a job well done: a check.
"I think all of my collectors feel great when a debtor gets his bill paid
and says, 'Thank you for working with me on this.' We handle mostly
medical accounts, which are more sensitive. We still get the job done, but
we allow the debtors to keep their dignity. We also love to get a huge payoff
from an insurance company that would not have paid if we hadn't forced
them to."