Have you ever wondered how debt collectors find deadbeats? They rely on a practice known as skip tracing. It is the same practice bounty hunters utilize when chasing down their targets. But how do they do it? How do debt collectors utilize skip tracing to find people purposely trying to stay hidden?
Skip tracing is an exercise consisting of multiple strategies. Debt collectors will use every suitable strategy they can to find debtors. The goal is always the same: to contact the debtor and arrange for some sort of payment.
Addresses, Phone Numbers, Etc.
Given that the purpose of skip tracing is to find a debtor so that contact can be made, debt collectors are really after contact information. They want the debtor’s current address. They want a phone number, an email address, and any other information that could prove helpful.
Debtors purposely trying to conceal themselves might be caught off guard by debt collectors who successfully find them. According to Judgment Collectors, a Salt Lake City collection agency that specializes in collecting money judgments, the element of surprise is often enough motivation to convince a debtor to pay.
Data Sources Play a Key Role
Debt collectors harvest a ton of information in search of their targets. They start with publicly available databases that can include:
- Property records
- Arrest and court records
- Voter registration data
- Business registration information
All public records are open to public scrutiny. And because nearly all are now online, it doesn’t take a lot of effort to access them. But successful skip tracers do not stop with public records. They also scour social media sites. They have access to proprietary databases containing data for which they pay.
Additional Skip Tracing Techniques
When public records, social media, and proprietary databases are not enough, debt collectors have other techniques they can employ. Some turn to modern analytics tools and AI-powered social media monitoring.
Other debt collectors rely more on old fashioned legwork. They contact friends and family members who might have useful information. They check with former associates, current and former employers, and any others who could possibly know the whereabouts of the target.
The amazing thing is that people will give up information without even knowing it. A skilled skip tracer knows how to ask questions and listen carefully to the responses. They can elicit a ton of information without showing their hands.
Legal Compliance Is a Must
If there is any good news for the debtor, it is the fact that debt collectors must comply with state and federal regulations. Even when utilizing skip tracing, they must adhere to the rules that govern how they do their jobs. An example is the Fair Debt Collection Practices Act (FDCPA).
The rules are designed to prevent debt collectors from excessively harassing debtors. Debt collectors can and should negotiate. They are not allowed to abuse debtors. They aren’t allowed to make threats, harass debtors at work, and so forth.
A Successful Tool
Skip tracing is a commonly utilized tool among debt collectors because it is also a successful tool. In the hands of a professional, skip tracing can significantly increase the chances of getting paid. That is what it’s all about for debt collectors.
Skip tracing is designed to find debtors who don’t want to be found. When it succeeds, debt collectors are able to make contact with their targets in order to begin payment negotiations. The smart debtor knows that continuing to avoid doesn’t make sense. A debt collector who has found him through skip tracing will keep after him until the debt is paid.
