What Does a Collections Representative Do?
A collections representative is responsible for contacting individuals or businesses with overdue accounts and working with them to resolve outstanding balances. Their primary goal is to secure payment while maintaining positive customer relationships and complying with legal and ethical standards.
They communicate via phone, email, or written correspondence, using negotiation and problem-solving skills to arrange repayment terms. Whether collecting on credit cards, loans, utilities, or medical bills, collections representatives must balance assertiveness with empathy to ensure successful outcomes.
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Collections Representative Core Responsibilities
- Contact customers with past-due accounts to request payment or arrange repayment plans
- Explain account status, outstanding balances, and available options for resolving debt
- Negotiate payment terms in accordance with company policy and applicable laws
- Update account information and track communications in the CRM or collections software
- Research billing discrepancies, resolve disputes, and provide documentation as needed
- Escalate unresolved accounts or suspected fraud to management or legal teams
- Follow regulatory guidelines (e.g., Fair Debt Collection Practices Act) and internal compliance policies
- Meet performance metrics for call volume, payment resolution, and customer service
Required Skills and Qualifications
Hard skills
- Proficiency with collections software and CRM systems
- Familiarity with billing systems and payment processing tools
- Knowledge of FDCPA and other relevant debt collection regulations
- Data entry and recordkeeping accuracy
Soft skills
- Strong verbal communication and active listening
- Negotiation and conflict resolution
- Empathy and professionalism when dealing with sensitive situations
- Time management and ability to multitask in fast-paced environments
Educational requirements
- High school diploma or GED required
- Additional training or coursework in finance or customer service is beneficial
Certifications
No formal certifications required, though FDCPA training is often preferred or provided by the employer.
Preferred Qualifications
- Previous experience in collections, customer service, or call center roles
- Bilingual communication skills
- Experience working with delinquent or high-risk accounts
- Familiarity with third-party or agency-based collections practices
National Average Salary
Collections representative salaries vary by experience, industry, organization size, and geography. Click below to explore salaries by local market.
The average national salary for a Collections Representative is:
$45,500
Sample Job Description Templates for Collections Representatives
Entry-Level Collections Representative
Position Overview
An entry-level collections representative is responsible for contacting customers with past-due accounts and assisting them in resolving outstanding balances. They follow established scripts and procedures to ensure accurate, professional communication while learning the fundamentals of collections and compliance.
Responsibilities
- Make outbound and receive inbound calls to discuss delinquent accounts
- Provide basic account information and payment options
- Update customer records and note call outcomes in CRM systems
- Escalate complex or uncooperative cases to senior staff
- Learn and adhere to debt collection regulations such as the FDCPA
- Maintain call quality and meet call volume or resolution targets
Requirements
Hard skills
- Basic computer and phone system proficiency
- Familiarity with data entry and call documentation
- Understanding of payment processing procedures
Soft skills
- Clear communication and listening
- Willingness to follow scripts and procedures
- Patience and professionalism with customers
- Reliable attendance and punctuality
Education
- High school diploma or GED required
Senior Collections Representative
Position Overview
A senior collections representative manages high-risk, escalated, or high-value accounts. They use advanced negotiation tactics, mentor junior team members, and play a key role in improving collections processes and compliance.
Responsibilities
- Handle escalated or complex delinquent accounts
- Negotiate structured payment arrangements or settlements
- Review customer disputes and coordinate with billing or legal teams
- Coach and support junior collectors on compliance and call handling
- Ensure all communications comply with regulatory standards
- Analyze account data and recommend process improvements
Requirements
Hard skills
- Advanced knowledge of collections software and billing systems
- Strong grasp of FDCPA and internal policy requirements
- Documentation of multi-step account resolutions
Soft skills
- Persuasive communication and negotiation
- Mentoring and conflict resolution
- Critical thinking and independent judgment
- High accountability and process adherence
Education
- High school diploma required; associate degree preferred
Medical Collections Representative
Position Overview
A medical collections representative collects payments on patient accounts for healthcare providers or billing agencies. They manage balances after insurance processing, explain charges to patients, and ensure HIPAA compliance.
Responsibilities
- Contact patients about past-due medical bills or co-pays
- Explain balances, insurance coverage, and available payment options
- Coordinate with insurance providers to resolve claim issues
- Verify patient information and billing accuracy
- Document calls and update EMR or billing software
- Maintain HIPAA compliance in all communications
Requirements
Hard skills
- Familiarity with medical billing systems and terminology
- Understanding of insurance claims, EOBs, and co-insurance
- Knowledge of HIPAA regulations and patient confidentiality
Soft skills
- Compassionate communication with patients
- Conflict resolution and financial counseling
- Attention to detail in records and insurance follow-up
- Strong organizational skills
Education
- High school diploma required; medical billing coursework preferred
Consumer Loan Collections Representative
Position Overview
A consumer loan collections representative focuses on recovering payments for delinquent personal loans, auto loans, or credit card balances. They verify loan terms, negotiate repayment plans, and track payment arrangements.
Responsibilities
- Contact borrowers regarding overdue loan accounts
- Explain loan terms, balances, and interest calculations
- Offer payment plan options or recommend debt resolution strategies
- Document borrower interactions and agreements in loan servicing platforms
- Follow financial compliance regulations including FDCPA and UDAAP
- Escalate legal accounts or repossessions as needed
Requirements
Hard skills
- Loan servicing system experience (e.g., FIS, Fiserv, or similar)
- Understanding of interest accrual and payment structures
- Familiarity with credit reporting and regulatory compliance
Soft skills
- Strong math and communication skills
- Resilience in high-pressure or emotional situations
- Assertiveness with professionalism
- Accuracy in documentation and follow-through
Education
- High school diploma required; financial training preferred
Commercial Collections Representative
Position Overview
A commercial collections representative works with businesses to resolve outstanding invoices or contract-based payments. They manage large balances, coordinate with accounts payable teams, and ensure that commercial terms are upheld.
Responsibilities
- Contact companies regarding overdue invoices or unpaid contracts
- Review account statements and aging reports to prioritize outreach
- Negotiate repayment timelines and resolve billing disputes
- Collaborate with sales and finance teams to maintain client relationships
- Document communications and payment commitments in ERP systems
- Follow company policy and commercial credit guidelines
Requirements
Hard skills
- Experience with B2B collections and enterprise billing platforms
- Understanding of payment terms (Net 30, Net 60, etc.) and contract clauses
- ERP software proficiency (e.g., SAP, NetSuite, Oracle)
Soft skills
- Professional communication with finance departments
- Persuasive and diplomatic problem-solving
- Strong follow-up and account tracking
- Business-level judgment and professionalism
Education
- High school diploma required; associate or business degree preferred