What Is Skip Tracing for Debt Collection?
Debt collection professionals and private investigators both use a well-codified process for tracking down individuals with financial obligations. It is not always easy because it may lead to a series of outdated or temporary contacts along the way, but it has been trusted for decades because it gets results. Suppose you are looking to manage debt collection processes for your business or clients. BatchSkipTracing uses the best skip tracing data to make it simple and easy to get quick, accurate results so that you can locate the debtors and collect outstanding debt. In that case, it’s worth looking at BatchSkipTracing debt collection tools to avoid having to hire an outside investigator.
When Is Skip Tracing Necessary for Debt Collection?
Skip tracing gets its name from the phrase “to skip town” because it is the process of running down contact leads on an individual who may have made life changes to avoid being found. It uses public records to help locate someone who has changed jobs or homes by checking for mail forwarding, new mortgage lines on a credit report, or property ownership records. It is necessary for debt collection when someone intentionally avoids a bill or withholds collateral on a loan in default.
Understanding The Skip Tracing Process
Each skip tracing resource tool will have slightly different processes for determining likely contact information, but they all follow the same general best practices. Some use only data from specific resources; others check all public records. If you invest in either software tools or personnel who can do skip tracing for you, you must understand what goes into the practice. You also need to know when you should skip trace and when you should try other contact methods to make sure you are not paying for the additional resource unless it is necessary.
- Public records from government sources are checked, including property deed records, driver’s license databases, and vehicle registrations.
- Credit reports, loan applications, and flagged inquiries from recent background reports linked to job applications are sought out next, from various reporting bureaus and resources.
- Utility bills, store loyalty cards, and consumer credit program cards for individual businesses are also consulted where they are available.
- Tax information, courthouse records, and criminal background checks provide additional information that could locate individuals who are not currently paying a mortgage or lease on a dwelling.
- If the person in question holds debts, those they owe may be consulted to see if payment forwarding information has been provided.
All of this information can be queried from the resources that have it because the records are public. The process is outsourced or automated because it is time-consuming, so having a quick search database to query or a professional to delegate to is often the only way to manage a trace while also managing another job or business. Thoroughness is also a trait that can only be cultivated with time, which means beginners are likely to overlook available resources and would be included in searches through a skip tracing service.
When Should You Skip Trace?
Tracing costs money and time that could be better put to use running your business. If you’re not sure whether to use this tool to track down someone who owes you money, consider your other options. Contact information they have provided and past outreach methods are the first steps, but skip tracing is probably the best option if they have failed. Keep in mind that outreach can be tricky when you use tracing to find someone because they frequently do not want to be found.
If you are considering debt collection tools, a skip tracing app is probably a good choice for frequent searches, provided you find a thorough one. The process is just that, and its results are only as good as the information available in the first place.