What is Skip Tracing in Debt Collection: A Quick Guide

You’ve provided a service, sent out the invoice, and… nothing. Your client seems to have vanished into thin air. And now, you’re left wondering if you’ll ever see your hard-earned money. It’s frustrating, right?

If you’re already considering throwing in the towel, I’m here to let you know all is not over. Yes, you’ve done your part and delivered on your promises. But now, now you’re left chasing shadows. What if I tell you there’s still a super effective technique to track down these elusive clients? Yes, that’s right! I’m talking about skip tracing!

I know the term “skip tracing” probably sounds like something of a spy movie. But trust me, it’s not as cloak-and-dagger as it sounds. Rather, it’s pretty darn effective when it comes to tracking down those clients who seem to have mastered the art of disappearing! 

So, what exactly is this skip tracing service all about? How does it work? How can it help you with debt collection? Keep reading to find answers to these questions and more!

What is Skip Tracing in Debt Collection: A Quick Guide

You can liken skip tracing to doing private investigators work, but in the debt collection world. In simple terms, skip tracing is a process of tracking down debtors who may have skipped town or deliberately made themselves unreachable.

Relocating to new settlements is not uncommon among debtors. They assume they can evade their financial obligation once they move to another geographical location. Well, they couldn’t be more wrong.

Hiring a skip tracer or debt collection agency is like hiring professionals at bounty hunting. They have an array of tracing tools at their disposal to work with. I’m talking about accessing debtors’ public records, databases, social media, and credit reports. And then there are the other good old-fashioned investigative techniques debt collectors can utilize along the way.

The beauty of skip tracing is that it’s not just about finding an address. It’s about building a comprehensive profile of the debtor. That means building a profile of their habits, their assets, and their connections. With such comprehensive information, debt collectors can determine how best to approach debtors for effective collection.

How Can Skip Tracing Help With Debt Collection?

We’ve talked about what skip tracing is, but now let’s get practical. How can these skip training tools actually make a difference in the day-to-day operations of debt collectors?

Locates Elusive Debtors

Let’s face it some debtors are masters of disappearing acts. They can change addresses, phone numbers, and even put on Harry Potter’s invisibility cloak. This is where skip tracing truly shines. You can leverage various skip tracing tools like various databases and public records and put a smile on the creditor’s face. The best part is that skip tracing does more than just find their new home address. It can also provide you with a wealth of information, including phone numbers, email addresses, and even social media profiles.

Verifies Debtor Information

The last thing you want when trying to recover a debt is working with inaccurate information. This alone can even get your case thrown out by a judge if you decide to pursue legal collection means. Skip tracing is a powerful tool for verifying and updating the information you already have. It’ll save you from wasting your precious time and resources. So, no more sending letters to outdated addresses or leaving voicemails on disconnected phone numbers.

Saves Time and Resources

You’ll agree with me that time is of the essence when trying to recover a debt. The longer the debt remains unpaid, the lesser the chance of getting every penny back. Heck, there’s even a stipulation in the rule books that says a debt lasting for more than 3-6 years is GONE. In some cases, however, there’s a grace period of up to 10 years. You can maximize your time with skip tracing since it’s an automated process. Less manual work means better efficiency and a more productive recovery process.

Uncovers Hidden Assets

Remember when I said skip tracing does more than just finding a debtor’s new home address? Well, it locates the individual’s resources too. That debtor claiming he’s unable to pay may be hiding his assets or even pleading bankruptcy to the court. Before you know it, their debt may be written off by the court, and you’re left with nothing. 

Fortunately, skip tracing is common in cases like this because it’s pretty good at revealing hidden assets. And with this knowledge comes the power to get the most favorable outcome. You can leverage these pieces of information during negotiations and force the debtor’s hands.

Improves Collection Rates

At the end of the day, it’s all about results. By providing you with accurate, up-to-date information and insights into debtors’ financial situations, skip tracing can significantly boost your collection rates. Skip tracing helps you make informed, strategic decisions. No more shooting in the dark, making illegal threats, or breaking debt collection practices in the line of duty.

Effective Skip Tracing Techniques for Debt Collection

You’ve seen how powerful this tool can be, but how exactly do you wield it?

Leverage Public Records

Public records are exactly true to their name: they are available to the public. They are official, reliable record books detailing an individual’s history. It’s an open book just waiting for you to read between the lines. Then, follow a trail of breadcrumbs leading right to your debtor. You’ll find useful information like court records of past and/or present legal issues. There are also records of properties, marriage or divorce, voter registration, and more. All these records carry associated information like addresses, phone numbers, etc.

Harness Social Media

It’s amazing what people share online in today’s digital age. Besides, nearly everyone has some sort of digital presence on different social media platforms. So, check all major platforms like Facebook, LinkedIn, Twitter, Instagram, and TikTok. Look for their location check-ins too. You can even analyze their friend list, family, or coworkers. They might just be the key to putting the puzzle together.

Utilize Specialized Databases

Public records and social media are great indeed. However, using specialized skip-tracing databases takes things to the next level. These databases compile information from various sources, giving you a more comprehensive view. Take utility records, for instance. You’re bound to find their current address. The same goes for professional licenses, which may even provide additional contact information. And, the same goes for the vehicle registration database which may contain their social security number.

Conduct Thorough Internet Searches

The internet is your friend. So, consider doing a deep internet search as well. Try different name variations. This could mean their nicknames, maiden names, or common misspellings. Online directories and people-finder sites can also prove useful. The beauty of internet searches is that they are free to use and easily accessible.

Network and Gather Intel

Sometimes, the good old-fashioned detective work is what gets the skip-tracing work done. This is where personal connections and human intelligence come into play. They provide something automated systems can’t offer you. I’m talking about context. Sometimes, a casual conversation can reveal more than a dozen database searches. So, contact the known associates of the debtors. This could mean their former employers, neighbors, or relatives might have valuable information.

Skip tracing is your financial GPS guiding you to better results and smoother operations.

Skip tracing gives you a much better footing to successfully recover debt. It just takes knowing the techniques and honing your skills well. Fortunately, there’s a platform that can help take your skip-tracing skills to the next level. You’ll also get the opportunity to connect with the best in the business. I’m talking about Connection2Collections!

You’ll be connecting with other seasoned pros to collect tracking secrets, innovative collection strategies, and real-world experiences. Whether you’re a newbie trying to find your footing, an agency owner looking to stay ahead of the curve, or a creditor eager to understand the collection process better, Connection2Collections has something for everyone.

So, join Connection2Collections today and step into the winner’s circle of debt collection. See you there!