Growth Trends for Related Jobs

Job Description for a Collections Department

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Collections department employees attempt to collect payment on overdue bills. Some work for third-party collection agencies, while others—known as in-house collectors—work directly for the original creditors, such as mortgage companies, credit card companies and hospitals. Collections department employees must have good problem-solving and people skills.


Most collections department jobs require only a high school education, though some employers prefer to hire workers with some post-secondary training or with experience in jobs involving contact with the public. Prior collections department experience is generally not necessary. Employers usually provide on-the-job training for their collectors.


Collections department employees are responsible for locating consumers or businesses with delinquent accounts and notifying them of the delinquencies. They work with those consumers or businesses to arrange payment of past due amounts or, in some instances, the return of merchandise.


Collections department employees must be comfortable with technology. They use computers and computer systems to search for consumers or businesses, to enter and process data and to track scheduled payments.

Desired Skills

Successful collections department employees are self-motivated. They have good investigatory skills and are detail-oriented. They also work well with people, which includes having good listening skills, problem-solving skills and an ability to persuade.

Legal Restrictions

Because the collections industry is highly regulated, collections department employees must be aware of and comply with state and federal laws, including the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. Most employers provide training on these laws.

Job Outlook

The job outlook for collections department employees is strong. Collections department opportunities are expected to decline 9 percent through 2028 because companies are looking to automate collecting unpaid debts.


Aimée M. Bissonette, J.D. (University of Minnesota Law School), has been writing professionally since 1993. Her book, "Cyber Law: Maximizing Safety and Minimizing Risk in Classrooms," helps educators understand the legal issues associated with the use of technology in schools. Bissonette practices law with Little Buffalo Law & Consulting in Minneapolis.

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