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It's 6:30 p.m. on a weekday evening, and you settle into your chair to enjoy a relaxing dinner. You're startled when the telephone rings. A feeling of dread comes over you as the phone's harsh trill reminds you that all is not right in your world. Someone is after you and he wants your money. You recognize the number displayed on the caller ID. It's the same bill collector who's been calling your home for the past two weeks. You realize you can't escape and you finally answer the phone. Does this scenario sound familiar?
Each day thousands of Americans receive calls like this from collections agencies. Americans are becoming more and more in debt thanks to borrowing money with means like credit cards, student loans and car loans. With this grim reality comes the likelihood that you or someone you know has been disturbed during dinner or at work by a debt collector. But have you ever wondered what it's like to work as a debt collector?
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When she first started working in the role, she had to get accustomed to the constant chatter going on around her. "It's a call center. It was kind of confusing to hear hundreds of conversations at one time. There are about 200 people that work on the floor," she says.
A Day in the Life
Ashley works the night shift from 1:00 p.m. to 10:00 p.m. and gets paid $13.20 an hour. The majority of her calls are made from 1:00 p.m. to 5:00 p.m. when she can actually get a hold of the most customers. During a typical shift, she makes approximately 300 calls. Out of those 300 calls, she only makes contact with about 30 people. "We leave more messages because it's an automatic dial-in. They (customers) will hear something like, 'Please hold for an important call from ...' Then I'll hear an irate person say, 'Hello?' They're wondering why there isn't a person on the phone," says Ashley. Of course many customers hang up after hearing the recording. Ashley explains that since all calls are automatically dialed through a computer, the collector will hear a beep right before the call starts.
She only has 30 seconds or less of down time between calls, and she rarely if ever speaks to the same customer twice. Collectors are instructed to keep each call under two minutes. Due to the high volume of calls, her employers say this rapid-fire automated calling is the most cost effective method. Ashley says that her phone calls are ruled by an exacting script she must follow. She explains that during a call, the collector has to identify herself, state why she is calling, ask why the bill is delinquent and ask when the customer can pay.
At the end of each call, she has to remind the customer when the bill was due, the amount owed and the available payment options. She will also ask for an alternative phone number or a work number where the debtor can be reached. Debt collectors' calls are randomly monitored, and they have to achieve a challenging 90 percent for quality on their scorecard. Ashley says, "They'll mark you off if you say something different (than what's scripted). Quality assurance rules and the people who are monitoring calls vary, so you don't know what you'll be marked off for." Sometimes collectors get marked off for situations that are out of their control. For example, one of her fellow employees got a demerit because a customer hung up on him.
In order to avoid what's called "early termination," they are advised to keep the customer on the line and say, "Please hold on. This will only take a second." In her time working as a debt collector, Ashley has heard her share of irate and vulgar customers, from the person who called her "the devil" to those who use racial slurs and curse her out. Ashley tells the story of a phone call to an unemployed woman whose husband had also lost his job. When Ashley asked how much could be paid toward the sum owed, the woman replied, "Nothing. My husband and I don't have any money. I can't get welfare because I'm white and not a minority."
Ashley says she tries hard to push her emotions aside when dealing with such offensive clientele. Other customers seem like they are angry at the world and are looking to pick a fight, like one of Ashley's debtors from New York. He refused to pay the money he owed, but then kept Ashley on the phone in an attempt to argue with her. He told Ashley, "I'm tired of you people threatening to mess up my credit!" Ashley replied, "I'm not going to go back and forth with you." The man yelled, "So I guess you don't want the money!" and hung up. "The reality is that we don't care as much as they think we do," says Ashley. Sometimes Ashley just can't be bothered with objectionable consumers, even if it means getting a demerit for an early termination.
She says, "I personally just hang up, whether it's because of their sarcasm or tone. I just don't feel like dealing with it. I don't worry about the consequences." If a customer is especially egregious, she's allowed to terminate the call without being penalized, but she has to document the incident by saying something vague like, "Cardholder used profanity." Other times, she feels sorry for customers who can't pay their bills and then have to face high finance charges. She once spoke to a woman who told Ashley, "I've been out of work on maternity leave, and I've lost my baby. I'm going back to work in August. Can you hold the late payment fees until September?" When Ashley refused, the woman cried hysterically and said, "I'm doing the best that I can." Calls like this break Ashley's heart, "I wish there was something that I could do, but sorry, I can't. Buying on credit is not the way."
Under Pressure
Debt collectors throughout the U.S. have to follow strict rules put forth by the Federal Trade Commission. According to the FTC's Facts for Consumers on Fair Debt Collection: • A collector may not contact a debtor at inconvenient times or places, such as before 8:00 a.m. or after 9:00 p.m., unless otherwise agreed upon. A debt collector also may not contact a debtor at work if the collector knows that the debtor's employer disapproves of such contacts. • If the debtor has an attorney, the debt collector must contact the attorney instead of the debtor. • In most cases, the collector may only communicate to the debtor that money is owed.
A collector may contact other people, but only to find out the debtor's address, phone number or place of employment. Collectors are typically prohibited from contacting such third parties more than once. Despite a myriad of laws that Ashley must follow, her employer enforces demanding quotas. Ashley has to collect about $130,000 in overdue bills per month. If a collector doesn't make that quota, they're put on what's called "corrective action." This means that they have to make 85 percent of that goal within three months. Ashley complains that managers make it really difficult to achieve that goal. "You can't work overtime or change hours. Really, they'll give you six months to do it, but if you don't, you'll get fired," says Ashley.
'Above and Beyond'
The increasingly urgent need for U.S. businesses to maintain positive cash flow boosts the importance of collecting unpaid debts sooner. As a result, the workload for collectors is expected to increase as they seek to collect not only debts that are relatively old, but also debts that are only recently delinquent.
According to the Bureau of Labor Statistics' Occupational Outlook Handbook, "Employment of bill and account collectors is expected to grow faster than average for all occupations through 2014." Although many people probably wouldn't consider collections as the ideal job, Ashley enjoys the perks. Departments within her agency compete to become the "team of the month" and have events like potlucks to help motivate them. "They have good benefits," says Ashley. "They pay for babysitting services. The N.Y. office pays for transportation expenses."
Since she's been working there, she's always met her quota and gets .02 percent commission. Ashley had an entirely different perspective of collections before she started working as a debt collector. She's become much more proactive about her own finances after witnessing so many people struggling with monetary crises. "I'm more conscious of my credit. People who aren't conscious are hanging up and just don't care," says Ashley. "It takes a hustler. I try to convince them to pay more than the total amount. You have to go above and beyond to get them to pay their bills," says Ashley.
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Aug 10th 2009 @ 12:29PM rlunderhill
OH Boy, more crackpots trying to sell shit. Just never stops do it Matt and Lane.
Reply
Aug 21st 2009 @ 3:37PM mm
When will the Reader Comment sections screen out the garbage that comes in from these entrepreneur-types who are hawking their "get rich" programs? You folks are adding no value to the discussion.
Aug 21st 2009 @ 5:45PM mesv
Underhill,
These are some desperate cocksucking thieves, snakes, and cut-throats.
Anyone who believes it is easy to sit at home on thier lazy-ass and make a living deserves what they get.
If you have enough sunshine pumped up your ass; sunburn on the O-ring should be your first clue something is wrong.
Oh...what was the main subject for this blog?....lol
Aug 21st 2009 @ 5:52PM T holden
I worked for a mortgage company and was laid off, I took a collector position so I would not loose my health insurance for my family. Collections is the worst job I have ever had, but I have to do it until I can find something else, I get cursed out, called names, hung up on etc.. my job is to collect money, if I dont I get fired, so if you cant pay dont answer the phone, the people that I call are mad at me because they cant pay, My advice is dont use credit cards, most people have a mortgage or car payment pay the car off as soon as possible, dont keep charging stuff on the credit card you know you cant pay back and you wont get the calls.
Aug 21st 2009 @ 10:51PM LAUREN
I too am a bill collector. Only because I cant find another job in this awful economy. I have no patience for debtors though anyways ... own up to your bills, or you will start having your paychecks garnished 15% and you will never be able to get a home, apartment, or car because that stays on your credit report and nobody will give you a break when the IRS taxes 15% of your paychecks and all your yearly tax returns until the bill is paid.
Sep 1st 2009 @ 3:11PM mo
I agree. The advertisements have nothing to do with the story. I was a bill collector, but I was very nice and compassionate to others. I have to admit my co-workers could be vicious. I always tell my family and friends to always read the fine print when signing up for a credit card. About not caring for people, I always cared unless they yelled (understandable) then I would remain silent so the customer could hang up. If a bill collector threatens you, know that is against the law. If you don't want them to contact you, write the company a cease letter. Also, I made good hourly plus commission like Ashley. If a bill collector is rude, hang up that goes against their call quality. However, if they are nice try to work it out. Honestly, that might be the last nice voice because bill collectors want to get paid. Yes, its all about the $$$ and ensuring we have a job. Here is a good website to check out. www.fair-debt-collection.com
Sep 1st 2009 @ 3:31PM Jenn
I worked for a dept collection agency that collected student loans. We had alot of teh same perks and quotas as "Ashley" stated in her interview. But i'm sorry, I had to leave the business. There is alot more bs that goes on behind the scenes. And the simple fact that if people honestly can't pay for something because of their circumstances, my bosses want to penalize me and possibly terminate me. that's the part that made me say screw this business. If i'm busting my ass trying to get these people to pay and doing everything i'm suppose to and by the book none the less but can't meet their quota, and they still want to get rid of me. I'll just save them the trouble and leave on my own free will. Remember we are in trying times. The unemployment rate is thru the roof. If they can't get fired and can't find a new job there's nothing i can do at that point
Sep 1st 2009 @ 3:32PM Harley_d
You've got that right. These people who sell this stuff in here about home-based businesses only put about 10% of the truth. What they don't tell you is that less than 10% of all the people that start a home-based business actually are successful. I have friends that are in home-based businesses. They are successful but only because they contact over 300 people per week and try to sign up as many as they can. All but maybe two of those people fall out of business within 90 days. It makes me ill to think that these people list all this information that they're trying to get someone to pay money for and they can't even tell the truth. I sometimes wonder how these people sleep at night. But then I realize, they're the sleazy home-based business people that sell you the world and deliver nothing. The only people making money are the people selling the product that will never get you anywhere. keep you rmoney.
Sep 1st 2009 @ 3:44PM LARRY
YO GOT THAT RIGHT !
Sep 1st 2009 @ 6:47PM scott
it is so true. all these people putting there comments on here like they are making all that money. bullshit, its all lies.
Sep 1st 2009 @ 6:41PM Marilyn
I keep getting calls for people I do not know. They call me constantly. How do I stop this?
Sep 1st 2009 @ 7:08PM g
I wish they had even higher quotas no one could hit. everyone would get fired and no one would want to work in the industry. The world miss a thing from the bottom feeders. Remember professional tele-marketers industry.. what happened to them? High quotas and do not call list.. its a beautiful world !
Sep 1st 2009 @ 7:14PM jkellmorrow
I spent over 20 years in collections, and I was quite successful (you have to be to stay with the same company that long) but then the company wanted to turn it into robotics rather than encouraging thought. I was lucky enough to be able to retire.
Sep 10th 2009 @ 7:01AM Jerry Warriner
It's utter nonsense to claim that debt collectors are polite and follow government regulations.
They are snakes that resort to underhanded tactics. I've dealt with a couple of them who engaged in threats and harassment.
These people have no scruples, period!
Sep 2nd 2009 @ 10:25AM Mr.Jeebs
I've read most of the comments about this subject and it appears you are either on one side or the other. Let me provide some food for thought that may sway you one way or the other. My experience has led me to beleive that most who think debt collectors are dead beats have had financial difficulties that put them in a situation where they were forced to deal with these companies.
A few simple points:
1) Without debt collectors and collection companies, our economy would suffer resulting in increased interest rates from financial institutions that are unable to recover from their losses. So, our ability to borrow money at a reasonable rate can be contributed to the work of debtor collectors.
2) Most debt collectors are trained to negotiation normally taking less than the balance owed based on the situation of the consumer. They are provided spefici skills to identify the consumers ability to pay and work with them to help them through their financial difficulty.
3)As a debtor, you agreed to the terms in the contract, what gives you the right to be upset if the company you borrowed the money from calls you because you have not lived up to your obligation. A good example would be if you received a loan from the bank for a car and then all of a sudden they took the car back for no reason. They can't, hence the terms of the contract.
Personally, I enjoy the 4.8% interest rate on my car loan thanks to the efforts of debt collectors. Oh, and yes, years ago I was in debt and was forced to deal with these companies. However, instead of dodging them I worked with thim to the place I am today of financial freedom.
Sep 8th 2009 @ 7:13PM Bubba
Its easy.I purchased a big boat air horn. Its in the garage. I tell them, wait a minute. Take phone out in the garage, put on ear muffs. Then I blast the bastard. They don't call back. Try it.
Aug 21st 2009 @ 2:13PM JennyJen40
omg. when i get those calls, i hate to say it..i dont answer
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Aug 21st 2009 @ 4:38PM Kathy
One of these "awesome" collectors.. told me I should pay a car note on a car I had willingly let be repossessed rather than heart medications I had to have to stay alive.. Yeah they are great people. NOTTTTT
Aug 21st 2009 @ 7:18PM grinny5
Sounds easy but I never got caller ID. Why not? Because it cost money I KNEW I DIDN'T HAVE! I had my medical bills and that was too much already.
Sep 1st 2009 @ 3:18PM roxie
Yeah, I don't answer either. One of my collectors from an attorneys office (b/c many attorneys lack work due to economy) actually threatened to take us to court by Monday if we didn't call back. luckily, we know if there's no written court order then we can ignore these callers, so we did and guess what? They're just threats! We couldn't afford those debt collector agency fees either, so we just typed up a hardship letter and added $25-50.00 check stating we'll try to make monthly payments. I got a letter from former attorney collector who stated he received payment and sent envelope for next months payment. I did this without suffering through hassles of high debt payments and have monies left over to pay other debtors!!