What is the purpose of a collector?

• A. General collection duties as well as situations such as repossession, acceleration of a lease, bankruptcy and alternative liquidation processes.
• B. To maximize profits on new leases.
• C. To prepare marketing campaigns for new customers.
• D. To audit financial statements of tenants.

Answer: (A)

The main idea here is that a collector’s job is to manage collections and protect the lender’s interests when a customer falls behind. This means handling day-to-day collection efforts and, importantly, taking the remedies provided by the lease when defaults occur. These remedies include repossessing collateral if allowed, accelerating the lease so the remaining balance becomes due, and navigating bankruptcy or liquidation processes to recover value. The goal is to maintain cash flow and minimize losses while staying compliant with laws and the lease terms.

Other options point to roles outside collections, such as driving new lease profitability, marketing to new customers, or auditing tenants’ financials, which are not the focus of a collector’s duties.