Skip tracing is a process used to find a debtor who has relocated or disappeared to avoid legal responsibilities, such as debt payments. The skip tracing process involves verifying a debtor’s information, searching public records and contacting people who know the debtor. Hiring a skip tracer can save you time but can cost a substantial portion of the amount you’re owed.
How does skip tracing work?
Skip tracing is the process of locating individuals who have moved or disappeared, often to evade responsibilities like paying debts. Unlike detective work or bounty hunting, which can result in arrests, skip tracing is typically part of the debt collection process, helping creditors track down those who owe them money.
Who uses skip tracing tactics?
Skip tracing is a common tactic in debt collection. If you hire a debt collection agency to pursue payment from an unresponsive debtor, the agency may employ skip tracing to locate the debtor.
Debt collection agencies have the time and expertise to focus on finding debtors, whereas you may have other priorities. Additionally, detectives, private investigators, journalists, reporters, and attorneys frequently use skip tracing.
How do you know if skip tracing is necessary?
If a non paying client goes off the grid, you might consider using skip tracing to locate them. However, skip tracing isn’t always required. Often, you can find the necessary information yourself.
Unlike the early days of skip tracing, most information is now readily available online. With search engines and social media platforms, you can often handle the initial steps of skip tracing on your own. In some cases, you may be able to complete the entire process yourself, but if not, a more experienced skip tracer can assist you.
What is the skip tracing process?
If skip tracing becomes necessary, it typically follows these steps:
1. Your skip tracer verifies the debtor’s information.
The first step in skip tracing is to ensure that you have the correct contact details for the debtor. Sometimes, the lack of communication may be due to outdated or incorrect information. If the skip tracer successfully identifies accurate contact information, you can directly reach out to the debtor to request payment.
2. Your skip tracer collects publicly available information on the debtor.
Searching through various informational databases can be time-consuming and frustrating. If this task isn’t ideal for you, a skip tracer can handle it. They will examine public records to gather relevant information, such as:
- Address history
- Travel history
- Court records
- Credit card applications
- Credit reports
- Criminal records and background checks
- Driver’s license history
- Job applications and history
- Loan applications and history
- Phone number records
- Search engines
- Social media
- Tax records
- Utility bills
- Vehicular history
Using this information, the skip tracer may piece together clues to locate the debtor. If they are unable to find the debtor, they may pursue additional methods.
3. Your skip tracer contacts the debtor’s family and friends.
Family and friends of the debtor can sometimes assist in locating them, although cooperation isn’t always guaranteed. If they aren’t helpful, the skip tracer may also reach out to the debtor’s current and previous landlords, neighbors, or co-workers for potential leads.
Key Takeaway
The skip tracing process involves verifying the debtor’s information, searching public records, and reaching out to people who may know the debtor.
How skip tracers complete the skip tracing process
You might believe that you can handle skip tracing on your own. While this is possible, professional skip tracers are often better equipped to manage the process. They have access to specialized skip tracing software that may be cost-prohibitive for occasional use. If you only need to skip trace infrequently, professionals can offer greater efficiency and effectiveness.
Should you hire a skip tracer for debt collection?
If you’re a business owner or freelancer dealing with a nonpaying client, searching for someone who may be difficult to locate can be overwhelming. This is why many debt collection agencies offer skip tracing services.
Debt collection agencies specialize in locating debtors and may have more success in convincing them to pay compared to individual efforts. They also have more time to dedicate to this task than you might.
However, hiring a debt collection agency comes with a cost. These agencies typically charge a fee ranging from 25% to as much as 50% of the collected debt. If you believe that the expense is justified, our collection agency reviews can help you find the right agency for your needs. With their help, you may successfully locate your debtor and recover the money you’re owed.
Skip tracers can help you secure overdue payments
If a client who owes you money has disappeared, it may be time to enlist a collection agency that uses skip tracing. If your attempts to collect the debt have been unsuccessful and you’re unable to locate the debtor, skip tracers offer a chance to recover what you’re owed. If you’re determined to recover the debt, a debt collection agency that provides skip tracing services could be the solution you need.