Skip Tracing: A Collection Agency’s Secret Weapon
Going to court to win a judgment is sometimes the only way to compel a deadbeat to pay. But winning a judgment does not necessarily guarantee anything. In fact, it is not unusual for deadbeats to avoid paying by leaving town, providing false employment and address information, and other clever strategies. Enter skip tracing: the collection agency’s secret weapon.
There are general collection agencies as well as those that specialize in judgments. Salt Lake City’s Judgment Collectors is an example of one that handles only judgments. They say that skip tracing is one of their most valuable tools, especially when judgment debtors move away without letting anyone know.
It is All in the Name
If you have no clue as to what skip tracing is, just think about the name. It’s all there. The word ‘skip’ pertains to deadbeats who skip town in order to keep creditors off their backs. ‘Tracing’ is all about tracing a deadbeat’s whereabouts. It is about tracking them down.
You may be familiar with skip tracing if you know how bounty hunters and private detectives do their jobs. Collection agencies utilize the exact same strategies and principles to find deadbeats who do not want to pay their bills. In addition, the digital age has made skip tracing easier than it has ever been.
How They Do It
All of this begs the question of how collection agencies practice skip tracing. Much of what they do can be encapsulated in a single word: research. Collection agents, private detectives, and bounty hunters all put in endless hours of research and their attempts to find someone who has skipped town.
Here are just four of the methods experienced skip tracers employ:
1. Researching Public Records
Public records are a treasure trove of information. They include things like property and arrest records. A good example is a skip tracer searching public records for real estate transactions in the targeted person’s name. A recent home purchase could tell an investigator exactly where a dead beat moved to.
2. Running Credit Reports
Credit reports are some of the most up-to-date records a collection agency can look at. How do they help? Credit reports can provide valuable information about current address, employment, and even spending habits. If a deadbeat tries to obtain credit in a new city or town, the activity will probably show up on the latest credit report.
3. Social Media Research
One of the easiest and most effective skip tracing strategies involves browsing social media. People are so careless with the information they put on their social channels that they routinely give away where they are, what they are doing, and more.
Social media offers the added advantage of being able to identify potential assets that could be used as leverage to convince a deadbeat to pay. Any collection agency or private detective that does not utilize social media research is throwing away a fantastic tool.
4. Searching Proprietary Databases
Finally, individuals who utilize skip tracing as part of their work often subscribe to proprietary databases compiled by companies for sales and marketing purposes. Information on just about all of us exists on those databases in one form or another. They can be a treasure trove of information for a skilled skip tracer who knows what to look for.
Collection agencies utilize skip tracing to help collect judgments because it works. Those who are extremely skilled know what to look for, where to find it, and how to use it to their advantage. Needless to say that it is nearly impossible to hide from an experienced skip tracer.