Customers are reminded of past-due accounts and the consequences of failing to pay on time a soft collector. This can include both phone and mail contact. If the customer fails to pay the bill, the account may be turned over to a hard collections representative, who will pursue the balance using more aggressive methods. Specific financial institutions with their own collections departments, as well as specialty firms that perform this work on a contract basis for a variety of clients, may have openings.
Each employee may be given a set of accounts to work on, each with a specific collection goal. The goal is to establish positive contact with each account holder so that the representative can either collect the payment or devise a debt management strategy. Payment plans can take a variety of forms, depending on the parent company’s approval, and may include interest and convenience fees. Bills can be forwarded to another department if clients do not respond or if they are past due for more than a certain amount of time.
This usually entails a variety of methods for locating customers. A soft collector might need to search records to find someone at a new address, for example. When making contact, there are also legal requirements that must be followed, which vary region. Representatives must be aware of all applicable laws and how they apply in order to meet regulators’ requirements. A soft collector, for example, may be prohibited from discussing the debt with anyone other than the named party or a cosigner.
A soft collector can identify the company, request to speak with the debtor, and attempt to collect a payment or set up a payment plan over the phone. A demand for payment with contact information can be included in letters. This can be done over the phone if you have payment processing skills. If the customer requires a payment plan, details can be provided, as well as disclosures about any fees that may apply. Customers may also be warned that if they do not adhere to the agreement, they will be sent to hard collections.
As an incentive, employers may offer a flat rate of pay plus a commission for successful collections. Every month or quarter, the soft collector may be required to meet a specific goal. People who fail to meet this goal may be fired, as the company strives for maximum efficiency in its operations.