Skip Tracing: 5 Best Practices for Debt Collectors

Skip tracing can be a long process, one that comes with unexpected hurdles and a lot of red tape. The sheer number of ways it can be approached makes it difficult to pinpoint one perfect method for the task. However, whilst there may not be a single, fool-proof way to undertake skip tracing, there do exist several best practices that have proven their efficacy in debt collection. These various practices account for the many different interests a skip tracer has to navigate, including legal obligations, regulatory compliance, client expectations and ethical concerns. Using them to guide your skip-tracing methods will help streamline your efforts, make the most of your resources and improve your success rate.

Why would you need to skip trace?

The need for skip tracing typically arises in the context of debt collection, when a person has defaulted on a payment and cannot be contacted as per their usual means. It is used by businesses or creditors to find said missing persons and ensure their debts are repaid. Skip tracing also serves an important role in law enforcement and fraud investigations. For example, it comes in handy in:

• Tax enforcement when finding people who’ve made false income reports
• Tracking down important witnesses to cases 
• Serving legal documents like subpoenas 
• Locating people who’ve disappeared after unlawful activity
• Finding people who’ve skipped bail to bring them back to court

In situations where little is known about a person’s whereabouts, skip-tracing is a very useful tool to have. Skip tracers face many variables that impact the number and type of options they have when searching. Their expertise lies in the ability to work with minimal information and seemingly insignificant data, leveraging them to uncover more detailed and accurate leads. By carefully analysing and piecing facts together, skip tracers can gradually build a clearer picture of the individual they are trying to locate.

Best Practices When Skip Tracing

1. Comprehensive Initial Data

Skip tracing begins with the information that the tracer already has regarding the missing person. Gathering a comprehensive initial data set is necessary to maximise the chances of successful leads. This includes knowing the basic information such as full name, phone numbers, workplaces, email addresses, family and friends. However, any information can be a useful starting point depending on how it is used and the bigger the initial data set, the more opportunities there are to uncover more of the puzzle. 

It is important to keep in mind that the authenticity and validity of the initial data set should not be taken as fact, and there may be some data that is outdated, incorrect, or intentionally misleading. Therefore, the skip tracer must approach the initial data set with a critical eye, verifying and cross-referencing each piece of information they are given.

2. Multiple data sources

The amount, type and variety of data sources used in a skip-tracing case impact the reliability and accuracy of the information that is accumulated. Making use of multiple data sources allows the tracer to compare data across each source to check how true it is. Furthermore, each data source contributes different pieces to the overall puzzle so actively utilising different types increases your chances of finding the person. 

Keep in mind that not all data sources are created equal and any information found should be considered with respect to how trustworthy and verifiable its source is. For example, information sourced through social media may not hold the same weight as that offered by their employment records. There is a huge range of sources that can be utilised, with some of the more common ones including:

• Public Records
• Employment History
• Vehicle Registrations
• Criminal History
• Social Media Profiles 
• Financial records 
• Family and Friends
• Travel records

3. Skip-tracing software

Skip tracing software streamlines many tedious tasks that the process can involve and allows users to focus their efforts on the more complex, strategic aspects. Instead of the skip tracer manually pursuing each data point, skip-tracing databases automate this process by efficiently collating information from a wide set of sources (which the user can specify and customise).

They can sift through massive, disparate databases like public records, phone directories and social media profiles using one search tool, speeding up the search process and reducing the risk of missing a potentially important lead. Skip tracing case management software like Polonious also offers automated report generation and case monitoring features that help improve efficiency so you can manage more cases at a time.

4. Stay updated with regulatory changes

The nature of skip tracing makes staying updated with legal obligations a necessity to ensure regulatory compliance. Knowing what the applicable laws are allows skip tracers to identify the boundaries they can operate within and where certain actions would infringe on an individual’s rights. The law protects both the debtor’s and the debt collectors’ rights to a fair process, so overstepping it risks significant legal damages.

Regulatory requirements also help guide the skip-tracing process by specifying what is permissible and thus influencing the tools, sources and techniques used within the skip-tracing process. Staying updated with relevant changes is hence beneficial not only for compliance purposes but also for efficiently locating individuals. For example, guidelines for obtaining data help ensure that the information found is from a trustworthy source and can be relied upon for accuracy. 

5. Ethical Considerations

Like legal obligations, ethical considerations are a fundamental component of skip tracing that must be addressed for a fair process. Because the line between what is morally acceptable and not can be tricky in skip tracing, actively ensuring there is a standard to fall back upon prevents misrepresentation of the choices you make. This involves making sure that you have clear policies on how data is handled so debtors can have trust in the way their information is handled.

Avoiding the use of deceptive tactics showcases respect for individual rights and also improves the credibility of the information you source. By actively pursuing transparency about your skip tracing process instead, you can demonstrate commitment to ethical practices. This not only protects your professional reputation but also reduces the risks of legal complications arising.