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Key Responsibilities and Required Skills for Collections Specialist

💰 $35,000 - $70,000

CollectionsAccounts ReceivableFinanceBillingCustomer Service

🎯 Role Definition

A Collections Specialist is an accounts receivable and customer-facing professional who manages past-due invoices and delinquent accounts to recover outstanding balances while safeguarding the company’s reputation and customer relationships. This role requires proactive outreach via phone, email, and written correspondence; structuring payment arrangements; researching account histories and skip tracing; escalating high-risk accounts; and ensuring all collections activity complies with federal and state regulations. The Collections Specialist partners with billing, credit, legal, and customer service teams to reduce days sales outstanding (DSO), improve cash flow, and protect the company against credit risk.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Accounts Receivable Clerk
  • Customer Service Representative
  • Billing Specialist

Advancement To:

  • Collections Supervisor / Team Lead
  • Collections Manager
  • Credit & Collections Manager
  • Accounts Receivable Manager
  • Recovery Specialist / Recovery Manager

Lateral Moves:

  • Credit Analyst
  • Customer Success / Client Relations
  • Fraud Analyst
  • Billing or Revenue Cycle Specialist

Core Responsibilities

Primary Functions

  • Conduct consistent and documented outbound collection calls, emails, and written notices to delinquent accounts, applying professional, compliant communication techniques to negotiate payment plans and secure immediate payments.
  • Manage a defined portfolio of past-due accounts (by aging buckets and dollar exposure), prioritize outreach based on risk and recovery potential, and update status daily in the collections system or CRM.
  • Analyze account histories, transaction details, and disputes to identify root causes of delinquency and propose corrective actions with billing or service teams to prevent recurrence.
  • Establish and document payment arrangements, including one-time payments, installment plans, settlements, and automated payment authorizations; follow up on missed payments and escalate noncompliance.
  • Perform skip tracing and investigative research (public records, credit headers, third-party databases) to locate debtors, validate contact information, and reassign accounts as required.
  • Prepare and maintain accurate, auditable notes for every contact attempt, promise to pay, and account action in the collections platform to support compliance and potential legal activity.
  • Monitor compliance with federal and state collections regulations (e.g., FDCPA, TCPA, FCRA, state licensing laws) and internal policies; identify possible exposures and consult with legal/compliance as needed.
  • Work closely with billing, accounts receivable, and customer service teams to resolve disputes, correct invoices, and ensure accurate account balances prior to pursuing collection actions.
  • Escalate accounts for internal write-off, legal referral, or placement with third-party collection agencies when recovery thresholds and timelines are met; prepare required documentation for handoffs.
  • Reconcile payments received through various channels (online portal, lockbox, ACH, check, credit card), ensure proper application to invoices, and correct posting errors in collaboration with accounting.
  • Prepare weekly and monthly collection performance reports (promise-to-pay rates, roll rates, DSO impact, recovery by aging bucket) and present findings and trends to finance leadership.
  • Negotiate settlements and charge-offs within approved authority limits, documenting rationale and approvals to maximize recovery while minimizing litigation risk and preserving customer relationships.
  • Monitor and manage accounts subjected to bankruptcy filings, insurance recoveries, or other legal processes; coordinate with legal counsel and maintain bankruptcy procedure compliance.
  • Enforce credit holds and account restrictions for repeat delinquencies in partnership with the credit team, and recommend changes to credit terms based on customer risk profile.
  • Use collections and billing tools (e.g., Salesforce, FICO Debt Manager, Experian/TransUnion services, NICE, Katabat, SAP/Oracle collections modules) to automate outreach, track metrics, and improve efficiency.
  • Participate in periodic account reviews and root cause analysis sessions to identify recurring billing issues, process gaps, or system defects that affect collections performance.
  • Train and mentor junior collectors or cross-functional staff on systems, compliance requirements, and negotiation best practices to elevate team performance.
  • Execute outbound campaigns for early-stage arrears and inbound customer contacts seeking payment options, offering compassionate, solution-oriented approaches to recover balances while protecting brand.
  • Maintain strict confidentiality of customer financial data and adhere to data protection and privacy regulations while using third-party data sources and credit reporting tools.
  • Collaborate with sales and account management to resolve contract disputes, clarify terms, and obtain approvals for bespoke payment solutions for strategic customers.
  • Drive continuous improvement initiatives such as call script optimization, workflow automation, dispute triage, and adoption of e-payment options to reduce DSO and operational costs.
  • Support periodic audits (internal and external) by providing documentation, explaining processes, and implementing corrective actions to address audit findings related to collections activity.
  • Manage short-term special projects, such as vendor transitions, system implementations, or campaigns to recover pandemic-era delinquencies, ensuring business continuity and data integrity.

Secondary Functions

  • Assist in developing and maintaining collections KPIs, dashboards, and SLA trackers for senior finance leadership.
  • Create and update standard operating procedures (SOPs), call scripts, and escalation matrices to ensure consistent collections practices across the team.
  • Support ad-hoc reporting requests and exploratory analysis to identify at-risk customer segments and recommend targeted recovery strategies.
  • Contribute to cross-functional process improvement initiatives (billing accuracy, dispute triage, payment channel enhancements) to reduce future delinquencies.
  • Participate in system implementation and onboarding activities for collections technology and CRM integrations to streamline workflows.
  • Provide input to credit policy reviews and customer onboarding criteria based on observed trends and recovery outcomes.
  • Collaborate with legal and compliance teams to update training materials following regulatory changes or industry guidance.
  • Offer backup support for related accounts receivable tasks such as cash application and invoice reissuance during peak periods.
  • Help coordinate third-party vendor performance reviews and SLA enforcement for collection agencies and skip-trace providers.
  • Conduct periodic training sessions on compliance topics (FDCPA/TCPA fundamentals, harassment avoidance, documentation standards) for operations staff.

Required Skills & Competencies

Hard Skills (Technical)

  • Proficient with collections and CRM platforms: Salesforce, FICO Debt Manager, Katabat, NICE, or equivalent systems for case management and automated outreach.
  • Strong Excel skills including pivot tables, VLOOKUP/XLOOKUP, conditional formatting, and basic formulas to analyze aging, roll rates, and recovery performance.
  • Experience with billing and ERP systems such as SAP, Oracle NetSuite, QuickBooks, or similar for invoice validation and payment posting.
  • Working knowledge of credit bureaus and skip tracing tools (e.g., Experian, TransUnion, LexisNexis, TLOxp) to locate debtors and verify identity.
  • Familiarity with collections-specific compliance requirements: FDCPA, TCPA, FCRA, and state-level licensing and notice obligations.
  • Ability to use payment processing tools and reconciliation methods for ACH, lockbox, credit card, and electronic payment gateways.
  • Reporting and dashboarding experience (Power BI, Tableau, or Excel-based reporting) to produce management-level metrics and trend analysis.
  • Proven negotiation skills and settlement structuring experience to recover receivables while minimizing write-offs and legal escalation.
  • Strong documentation and case management discipline to maintain audit-ready notes and evidence for collections actions.
  • Experience handling bankruptcy claims, legal referrals, and coordination with outside counsel for recovery or litigation matters.
  • Knowledge of dispute resolution workflows and the ability to partner with billing/accounting to correct invoice inaccuracies.

Soft Skills

  • Exceptional verbal and written communication skills; comfortable handling difficult conversations with empathy and firmness.
  • Strong negotiation and persuasive skills with a focus on win-win solutions and preserving customer relationships.
  • High level of professionalism, integrity, and sound judgment when working with sensitive financial data.
  • Resilience and persistence to manage high-volume outbound activity while maintaining compliance and quality.
  • Strong analytical mindset with the ability to identify trends, root causes, and scalable process improvements.
  • Time management and organizational skills to prioritize a large portfolio of accounts and adhere to escalation timelines.
  • Problem-solving aptitude and ability to think creatively about payment arrangements within policy constraints.
  • Customer-focused orientation with the ability to de-escalate disputes and drive towards resolution.
  • Team collaboration and cross-functional influence to work effectively with billing, legal, sales, and credit partners.
  • Adaptability to changing regulations, system upgrades, and evolving collections strategies.

Education & Experience

Educational Background

Minimum Education:

  • High school diploma or equivalent; many employers require or prefer some college coursework.

Preferred Education:

  • Associate’s or Bachelor’s degree in Finance, Accounting, Business Administration, or related field.

Relevant Fields of Study:

  • Finance
  • Accounting
  • Business Administration
  • Economics
  • Risk Management

Experience Requirements

Typical Experience Range: 1–5 years in collections, accounts receivable, or a related customer-service/credit role.

Preferred: 3+ years of direct customer collections experience, demonstrated success managing a mixed-dollar portfolio, familiarity with collections technology and regulatory compliance, and experience negotiating settlements and managing legal referrals.

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