Expert: Michelle Dunn - 10/5/2009

Question
QUESTION:  What would be the average yearly salary of a collector who has been in the banking and credit union industry for the last 25 years, and has an excellent record of collections?

ANSWER: Lucille,
That depends on many things.  Are you experienced in first party collections and looking to be a credit manager or collector for a business?  Or are you talking about third party collections and working at a collection agency?

Both positions would be paid based on experience and skill, knowledge of the industry and job and other factors.  Third party collectors may be paid on a commission or sliding scale basis as well as with a salary but that may depend on the agency.

I know many agencies are looking for good experienced collectors and based on the economy I would think businesses also need the same type of help.

---------- FOLLOW-UP ----------

QUESTION: I am a collection specialist at a Vt credit uinon and feel that I am not being paid what I am worth. I have 25 yrs experience in first party collection of consumer loans, commercial loans and mortages. I have extensive knowledge of collection laws and processes. I asked for a raise and was told that I needed to prove what the payscale was for this position. I have a BS degree, 1 course shy of a masters in Psychology and an Assoc. Degree in Business Management. I am only earning $37,000/yr.I have brought the default rate from *% down to below 1%. What is the average pay scale I should be earning?

Thank you

ANSWER: That depends on many things.  Are you experienced in first party collections and looking to be a credit manager or collector for a business?  Or are you talking about third party collections and working at a collection agency?

Both positions would be paid based on experience and skill, knowledge of the industry and job and other factors.  Third party collectors may be paid on a commission or sliding scale basis as well as with a salary but that may depend on the agency.

I know many agencies are looking for good experienced collectors and based on the economy I would think businesses also need the same type of help.

Your average pay scale depends on so many factors, what type of place you are working, what the job description is, what the responsibilities are, where in the country you are located and much more.

---------- FOLLOW-UP ----------

QUESTION: As I have stated, I work for a Credit Union in Vt. I am considered a Collection specialist who Collects ALL loans 30 +days past due. I handle all Bankruptcies, repo's, all legal accts at the Atty's. I handle all recoveries of the charge off accts. I produce all reports needed by the CEO for the board. I am only earning $37,000.00/yr after 25 years of experience in the field. I have saved the Credit Union money by saving and restructuring loans. As I said previously, I have a BS Degree, one course short of a Master of Psychology and enough courses for an Assoc of Business Management. Do you feel that I am under paid? I have asked for a raise but was told that I needed to prove what the salary scale is for this situation.

Answer
I only have a couple of part time collectors now because of the explosion on the consulting/training end of the business; but when I did have full time help I started them out at $12/hr which averaged between $20,000 and $23,000 annually -- gross. There were a couple more experienced collectors I paid $14/hr; they earned between $24,000 and $25,000 annually.

Hope this helps.