What Does a Collections Specialist Do?
Find out what a collections specialist does, how to get this job, and what it takes to succeed as a collections specialist.
Collections specialists are responsible for managing the collections of museums, libraries, archives and other cultural institutions. They work to ensure that these collections are well-organized and maintained in a way that makes them accessible to researchers, scholars, students, etc.
Collections specialists may also be tasked with developing new exhibits or programs based on their institution’s collection. This might include researching artifacts, arranging them into displays, writing descriptions about them, etc.
Collections Specialist Job Duties
Collections specialists have a wide range of responsibilities, which can include:
- Identifying delinquent accounts by researching public records for information about outstanding debts
- Processing payments, refunds, and adjustments to customer accounts
- Responding to customer inquiries regarding their accounts or other topics related to banking or finance
- Processing court orders for debt collection by following statutory guidelines for collection activity
- Preparing reports on delinquent accounts to aid in collection efforts or legal proceedings
- Obtaining payment from debtors by phone or mail, including negotiating settlements with them if possible
- Reviewing account statements to identify errors or discrepancies that require correction
- Communicating with clients to explain fees or interest rates or changes to fee structures or interest rates
- Communicating with other departments within the company to resolve billing issues
Collections Specialist Salary & Outlook
Collections specialists’ salaries vary depending on their level of education, years of experience, and the size and industry of the company. They may also earn additional compensation in the form of bonuses.
- Median Annual Salary: $44,500 ($21.39/hour)
- Top 10% Annual Salary: $80,500 ($38.7/hour)
The employment of collections specialists is expected to grow at an average rate over the next decade.
Demand for these workers depends largely on the overall economy and the demand for credit. When the economy is strong, businesses tend to borrow more money and need to evaluate their existing debt portfolios. In addition, as new types of credit are developed, such as peer-to-peer lending, collections specialists will be needed to evaluate these new types of credit risk.
Collections Specialist Job Requirements
In order to become a collections specialist, you may need to have the following:
Education: A bachelor’s degree is not a requirement for a collections specialist position, but most employers prefer candidates who have a minimum of a bachelor’s degree in accounting, finance or another closely related field. A degree in these fields provides a strong foundation in business and finance principles.
Training & Experience: Collections specialists can receive on-the-job training in their new roles. This training may include learning the company’s policies and procedures, as well as the software and technology they use.
Certifications & Licenses: Certifications are not usually a requirement as a collections specialist, but they can help you become a more competitive candidate when applying for jobs.
Collections Specialist Skills
Collections specialists need the following skills in order to be successful:
Organization: Collections specialists often work with large amounts of data, and organization skills can help you sort and file information in an efficient manner. You can also use organization skills to create filing systems for incoming and outgoing mail and other documents.
Communication: Communication is the act of conveying information through speech, writing or other methods. As a collections specialist, you may be required to communicate with debtors to encourage them to pay their debts. You may also need to communicate with other members of your team to share information and develop strategies to encourage debtors to pay their debts.
Detail-oriented: A collections specialist needs to be detail-oriented to ensure they follow proper procedures and accurately record information. This skill can help you perform your job duties accurately and ensure you meet the company’s standards. You can also use this skill to ensure you send the correct information to customers and creditors.
Problem-solving: Collections specialists often work with customers to find solutions to their financial problems. This requires problem-solving skills, as you need to identify the source of the problem and find a solution that satisfies both parties. You may also need to solve issues that arise during the collections process, such as when a debtor doesn’t have the money to pay their debt.
Attention to detail: Attention to detail is the ability to notice small changes in information. This skill is important for collections specialists because they often work with sensitive information. They need to be able to notice any changes in the information they receive, such as a change in the amount owed or a change in the contact information for a client. This skill can help collections specialists ensure they send the correct information to the correct person.
Collections Specialist Work Environment
Collections specialists work in a variety of settings, including corporate offices, banks, and credit agencies. They typically work regular business hours, although they may be required to work evenings and weekends to contact debtors who are unavailable during the day. The work can be stressful, as collections specialists must often deal with angry or hostile debtors. They must also have the ability to remain calm and professional in the face of verbal abuse. In addition, collections specialists must be able to work independently and have the self-discipline to stay on task, as they are often required to work without direct supervision.
Collections Specialist Trends
Here are three trends influencing how collections specialists work. Collections specialists will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.
The Growth of Digital Collections
The growth of digital collections is a trend that is quickly changing the way that libraries and museums operate. With more and more information being stored digitally, libraries and museums are beginning to shift their focus towards collecting and preserving digital artifacts.
This shift is creating opportunities for collections specialists who have experience working with digital materials. By understanding how to preserve and manage digital artifacts, collections specialists can help institutions stay ahead of the curve and ensure that they are prepared for the future.
More Focus on Cultural Heritage Preservation
As cultural heritage preservation becomes increasingly important, libraries and museums will need to focus more on collecting and preserving items that reflect the history of their community. This means that collections specialists will need to be familiar with a wide range of materials and have the skills necessary to care for them properly.
In addition, collections specialists will need to be able to identify and acquire items that are both rare and valuable. This requires a deep knowledge of the market and an understanding of what collectors are looking for.
Greater Collaboration Between Libraries and Museums
Libraries and museums have traditionally been two very different entities, but in recent years there has been a growing trend towards collaboration between the two. This is due to the fact that both institutions share a common goal: to preserve and share knowledge with the public.
By collaborating with each other, libraries and museums can achieve this goal more effectively by sharing resources and expertise. Collections specialists can take advantage of this trend by becoming experts in both institutions and developing relationships with those who work in both fields.
How to Become a Collections Specialist
A career as a collections specialist can be both rewarding and lucrative. It’s important to consider the many different paths that are available to you when planning your career path. You could work for a large corporation, a small business, or even start your own collection agency.
No matter which direction you choose, it’s essential to have a strong understanding of the law and best practices in collections. You should also be able to communicate effectively with people at all levels of an organization.
Advancement Prospects
With experience, collections specialists may advance to supervisory or managerial positions. Some may move into related occupations such as loan officers, credit analysts, or customer service representatives. Some may open their own collection agencies.
Collections specialists need at least a high school diploma. Some employers prefer to hire applicants who have completed postsecondary coursework in business administration, accounting, finance, or a related field.
Collections specialists must have good communication and negotiation skills. They must be able to work well under pressure and maintain a professional demeanor when dealing with difficult customers.
Collections Specialist Job Description Example
At [CompanyX], we are a team of passionate professionals who work hard to get our clients the money they are owed. We are looking for a Collections Specialist to join our team and help us continue to provide excellent service to our clients. The ideal candidate will have experience working in collections and be familiar with the Fair Debt Collections Practices Act. He or she will be a quick learner with the ability to work independently and take initiative. The Collections Specialist will be responsible for contacting customers who are behind on their payments, negotiating payment plans, and keeping accurate records.
Duties & Responsibilities
- Consistently meet or exceed monthly collection targets while adhering to company policies and procedures
- Establish and maintain strong relationships with customers to facilitate payment of delinquent accounts
- Negotiate repayment plans, settlements, or other arrangements as needed
- Locate and contact customers with delinquent accounts by phone or mail to discuss outstanding balances and arrange for payment
- Keep accurate records of all account activity including payments, adjustments, and other relevant information
- Update account status and collection activities in company database in a timely and accurate manner
- Prepare and submit reports on account status and collection activities as requested
- Participate in training and development opportunities as needed to improve job performance
- Adhere to all federal, state, and local laws and regulations governing debt collection practices
- Perform other related duties as assigned
- Maintain a high level of confidentiality regarding customer information
- Handle customer inquiries and complaints in a professional and courteous manner
Required Skills and Qualifications
- Bachelor’s degree in business, finance, or related field
- 3+ years experience in collections, customer service, or a related field
- Excellent communication skills, both written and verbal
- Ability to work independently and with a team
- Proficient in Microsoft Office, with aptitude to learn new software and systems
- Strong organizational and time-management skills
Preferred Skills and Qualifications
- Experience with collections software programs, including QuickCollect and CollectPlus
- MBA or other advanced degree
- Fluency in multiple languages
- Proven success in meeting or exceeding collections goals
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