|Debt Collections is a widely used term which refers to the process of collecting money owed on a late bill or loan. The accounts receivable on the other hand is the amount of money which is due to be paid to a firm or an individual, from another firm or individual. These debtors can be those within the firm or outside the firm.
Accounts receivables are a term used in accounting that means a bill that hasn't been paid on time which leads to an amount overdue. It is a proven fact that for a business to run effectively, constant cash flow is required for the firm to run smoothly. In such a scenario, it is but obvious that the firm keeps its accounts receivables as low as possible so that they do not run into bad debts and suffer.
Accounts receivables jobs are careers whereby the individual determines what amount of funds are due from which billing period and the collections jobs is one whereby the person is responsible to collect the funds that the accounts receivable department failed to recover. Accounts receivable job is more of where the person has to deal with soft calls to the customer base, whereas in the collection job segment, the person will usually make a high amount of telephone calls to reach the person and is usually extremely aggressive in collecting the debts.
Both these jobs have to work in tandem. It is the duty of the person looking after the accounts receivables to keep a track of the payments due from people and it is the duty of the person who is in the collections jobs department, to collect the amount after it is charged of. The person in-charge of the accounts receivables department should continuously upgrade his records and keep in touch with the person responsible for collections.
Many times, there are problems faced by people who work in these two categories. There could be many debtors in place who simply refuse or are unable to pay up their outstanding debts when they are due. In this case it depends upon the one in the collection job how he takes up the challenge and make the person clear his outstanding as soon as possible. It has been found that the representatives of the collection agencies have used arm twisting techniques to make the defaulters pay up. Some of the incidents have even compelled the defaulters to suddenly disappear or even committed suicide. Keeping this in mind, The Fair Debt Collection Practices Act or the FDCPA was formulated in the year 1978. The purpose of this act was to do away with the abusive practices that a person within the collections job may resort to and provide the defaulters a platform for airing their concerns and work out their disputes with the collection agency. This act defines the rights of the consumers involved in the debt dispute and marks out the guidelines for those collecting the debts.
Debt collection job or account receivable jobs are in high demand. To know more about collection jobs visit www.mycollectionjobs.com