When a customer fails to pay for goods or services, the initial step is typically to reach out to them about the missed payment. But what happens when that customer seems to have vanished without a trace?
In these situations, many recovery agencies, such as Brown & Joseph, employ a variety of strategies to collect unpaid debts effectively. One crucial method they use is called skip tracing.
What is Skip Tracing?
Skip tracing is the process of locating someone who has “skipped” town or moved without leaving a forwarding address. The term “skip tracing” comes from the concept of finding someone who has disappeared or evaded contact.
Skip tracers are professionals skilled at locating individuals who have become difficult to find. This is particularly important when a debtor stops responding to calls, emails, or letters. Even if you have an address for the debtor, there’s always a chance they no longer reside there. The U.S. Postal Service reports that almost 30% of mail marked as “undeliverable” is due to people moving and not leaving a forwarding address or providing incorrect address details. This situation leaves creditors unable to notify the debtor of their outstanding balance, which could negatively impact their credit score.
Skip tracing is not only used by debt recovery agents but also by private investigators, lawyers, detectives, journalists, and bondsmen. Although skip tracing and bounty hunting are sometimes confused, they are different processes. Bounty hunters often hire skip tracers to help locate people, which may lead to the mistaken belief that the two are the same.
What is the Skip Tracing Process Like?
The skip tracing process usually involves several key steps to locate a person who is hard to find.
- Verify and Correct Information: The initial step involves reviewing the information provided by the client to ensure its accuracy. This helps the skip tracer identify any errors and become familiar with the subject. Correcting any misinformation is crucial for a successful search.
- Gather Information: The skip tracer then collects as much relevant information as possible about the subject. This often involves using various public resources, such as:
- Credit Reports: Documents that show the subject’s credit history and current status, which may include recent addresses.
- Public Records Databases: Government databases that contain information like addresses, phone numbers, and other personal details.
- Loan Applications: Forms filled out by the subject when applying for loans, which might reveal contact information.
- Criminal Background Checks: Records of any criminal activity that could provide clues about the subject’s whereabouts.
- Job Applications: Information from job applications that might include current or past addresses.
- Courthouse Records: Legal documents that may provide insights into the subject’s location or activities.
- Utility Bills: Bills for services such as electricity, water, or gas that may include recent addresses.
- Contact Acquaintances: If public records do not provide sufficient information, the skip tracer will reach out to people who might know the subject. This includes:
- Neighbors who might have recent information about the subject’s location.
- Landlords who may have details about the subject’s previous addresses.
- Friends who could provide current contact information.
- Relatives who may know where the subject has moved.
- Coworkers who might have up-to-date information.
Before the internet and social media became prevalent, skip tracers had to manually search for information. This involved traveling to different locations, talking to people in person, and sifting through public records at libraries. However, with the vast amount of data available online today, skip tracers can often find the information they need more quickly. Open-source databases like LexisNexis and Thomson Reuters provide a wealth of information that can be accessed easily, significantly improving the efficiency of the skip tracing process.
How Do I Hire a Skip Tracer?
When considering hiring a skip tracer, you have several options. Many businesses find it more cost-effective to hire a collection agency that has a dedicated skip tracing department rather than employing an independent skip tracer. Collection agencies often work on a contingency-fee basis, meaning they only get paid if they successfully recover the debt. This arrangement can be beneficial as there are no upfront costs if the debt is not recovered.
On the other hand, independent skip tracers typically charge by the hour. While this can offer more predictable costs, it might be higher if the tracing process takes longer. To find the best fit for your needs, it’s important to research and compare different skip tracers and collection agencies.
Conclusion
If a customer appears to have disappeared after failing to pay a bill, consider hiring a collection agency with a skip tracing department to help recover the debt. Skip tracers have the expertise and tools necessary to locate individuals who have become hard to find. By utilizing their services, you can improve your chances of successful debt recovery and avoid the challenges of trying to track down the debtor yourself.
