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GIZMO !
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Bulletin Board |
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SKIP TRACING
The
debt collector is very good at using all the information at their disposal to
intimidate you. These
intimidation techniques generate collections, and in turn big commissions, to
the debt collector. Skiptracing is the term used to track down debtors who have
dropped out of sight or have unlisted their phone number and become difficult to
communicate with.
The debt collection industry classifies these "skips," placing
them into one of four categories:
·
Unintentional
skips
·
Skips
resulting from marital difficulties
·
Intentional
skips
·
Skips
with criminal intent
The
"skips with criminal intent' are a very small percentage.
Most people go "underground" for one of the other three
reasons, and I'd like to add a fifth category.
How about skips afraid of the size of the medical bills they're buried
under? Let's
not forget, medical bills have become the #1 reason Americans have been filing
for bankruptcy in recent years.
Here
are some facts that collection agencies don't want you to know, courtesy of that
seminar I attended a few years ago:
1)
One out of every five people move to a new address every year.
2)
Up to
50% of all accounts collected by collection agencies require some form of
skiptracing.
3)
Skiptracing helps reduce/decrease bad debt losses.
4)
Skiptracing helps the collection agency:
a)
Locate the debtor in hopes of collecting.
b)
Determine if the debtor is able to pay up.
c)
Determine if other creditors are pursuing the same debtor.
d)
Determine what the debtor's paying habits are.
e)
Determine the stability of the debtor's employment.
5)
Here's the magic question: Should the creditor or debt collector pursue
the skip? These
are a few guidelines they follow in making that decision:
a)
Use good judgment (sometimes a rare commodity in this profession) and
follow all state and
federal laws.
b)
Virtually every debtor can be located with sufficient time and
expenditure of money.
c)
Creditors must limit the amount of time and money spent in order to keep
skiptracing costs in line with the size of the debt.
d)
Keep potential recovery in mind.
e)
Skiptrace in order to locate someone who will pay the account, not just
to gather information.
Re-read
items 5 c-e! These
are extremely important points of the collection equation to remember.
Creditors and debt collectors are NOT going to throw good money after
bad. These
people are not going to waste their time chasing and harassing someone if they
think their chance of recovery is slim to none.
Their time is money, too!
How They
Found You?
Computers
have sure made the debt collector's job easier, and made them more effective.
But even with the assistance of computers and massive consumer data
bases, the typical debt collector has a predictable pattern they follow to track
down "skips.
"
Here
are the techniques the debt collection community uses to find anyone and
everyone.
Location
Information:
a)
The debtor's last place of residence.
b)
The last telephone number at that place of residence.
c)
The debtor's last place of employment.
Information
To Be Developed/Co D On Steps
a)
The debtor's name, including the correct and complete spelling of the debtor's
full name, middle initial, junior or senior, etc.
b)
The debtor's correct address, including correct street name, number and
zip code (9-digit preferred).
c)
The debtor's previous address.
d)
The debtor's place of employment, including their occupation (remember, debtors
usually stay within their trade or occupation).
e)
Debtors who are members of trade unions, schoolteachers, nurses, etc. are
relatively easy to find if you can figure out where they may have moved to.
f)
Obtain information about debtor's position, length of employment,
earnings, usual paydays, etc.
g)
If you are dealing with a former employer, quiz them in order to obtain
any references or find out if anyone else has made any inquiries since the
debtor has left.
Posing as a friend from "back home," high school or college is
an effective ruse, as is posing as a relative.
h)
Find out if the debtor rents, leases or owns property.
i)
If the debtor does own any real estate, check public records (courthouse
or tax rolls) for the name of the mortgagor.
j)
Once you find out the mortgagor, you may be able to find out by
contacting them directly who carries the insurance on the property-another
potential wealth of information and leads.
k)
If the debtor rents, find out the landlord or property, management
company's name, address and telephone number on-site property managers will talk
in many cases.
l)
Check to see if debtor owns an automobile or motorcycle through
department of motor vehicle records. Obtain name, address and telephone number
of company that financed or currently has a lien on the automobile.
n)
Get out the crisscross directory.
Former neighbors are usually a pretty good source of information.
See next category for line of questioning.
o)
Current neighbors: A terrific source of information!
When does the debtor go to work?
What time do they come home?
What type of car do they drive?
Can you get a license number?
Do you know what they do for a living?
Do they have any kids?
Have you ever talked with them?
What did they have to say?
Skiptracing
By Mail
a)
Remember, a debt collection agency may not send correspondence through
the mail that indicates
the sender is a debt collector.
b)
The Post Office will search their records and give you the new address,
if one exists, for $1.00.
c)
The Post Office is also a pretty good source of information to get
additional data on the debtor (if they rented) by tracing the 9-digit zip code.
These 9 digit zips can supply more specific data that can be used for
further tracing.
d)
Try mailing an empty envelope (with your return mailing address) to the
last known address with the notation in the bottom right-hand comer
"POSTMASTER: FORWARDING AND ADDRESS CORRECTION REQUESTED If there is a
forwarding address the post office will send this information to you for
(currently) a $50 fee.
e)
"RETURN TO SENDER" is your first sign of trouble and indicates
your debtor is probably a skip.
f)
Carefully examine all returned mail that is undeliverable for clues.
g)
"NOT HERE" is a typical Post Office wording that indicates the
debtor is no longer there.
h)
"NOT THERE" is not normally used by the Post Office and
indicates it was probably written by someone still at that address.
i)
MOVED-NO FORWARDING ADDRESS" indicates the debtor is probably a true
skip.
j)
FORWARDING ORDER EXPIRED" indicates the time limit for forwarding has run
out (you may get lucky and check with the post office and get a copy of the
forwarding order).
k)
"CERTIFIED MAIL/RETURN RECEIPT REQUESTED" is useful when you need
confirmation of a piece of mail being delivered and also to verify who signed
for it.
l)
"RESTRICTED DELIVERY" assures that the target debtor receives
the mail. This
is a premium service and costs extra.
m)
"FORWARD" will show the target debtor's new address if on file and
will show the return item from the post office.
n)
"RETURN TO SENDER IF NOT DELIVERED ON FIRST ATTEMPT" is used if
you are trying to keep from tipping your hand that you are searching for the
target debtor.
Without this instruction, your target will be able to claim the letter at
the post office and will know that you're looking for them.
In addition, you
still would not have a certified address.
Skiptracing
By Telephone
a)
Making telephone contact is the most effective, fastest and cheapest
method.
b)
Use good timing when contacting your informants in order to gain their
maximum cooperation.
Don't forget the time, place and type of person you are attempting to
contact.
c)
Avoid calling early in the morning, when your informant is trying to get
kids to school and themselves to work, or at dinnertime.
d)
Always leave a phone number (preferably toll-free) for informants to call
you back.
e)
Identify your informant.
Always know who you are talking to and verify their name and address.
f)
Identify yourself, stating only your name.
Don't identify your employer, unless they specifically ask you to do so.
If informant asks you to identify your employer, simply state the name of
the original creditor (not your Collection Agency name).
g)
Tell your informant you need their help.
Be courteous and friendly.
Try to build a rapport with your informant immediately ... this will
encourage them to respond.
h)
Under the Fair Debt Collection Practices Act (Public Law 95-109) you can
only contact your target debtor at their place of residence, their place of
employment or the telephone number you have on record.
i)
Use psychology on your informant.
Silently wait for them to make the next move.
Wait for them to respond.
Be patient.
j)
Listen closely for information and leads.
Analyze everything the informant says to you since they may give you
leads to other sources of information.
k)
Analyze the informant's attitude.
Be alert for inadvertent clues and listen closely for inconsistencies.
l)
Question your informant.
Your questions may help turn up more information than the informant
realizes they know.
Limit your questions to acquisition of location information.
Be sure to phrase all of your questions in a positive manner.
Sound confident that you have the right information, even though you may
be attempting to bluff information out of your informant.
m)
Be prepared for any questions your prospective informant may have for
you. You
should try to structure all of your answers with a combination answer and
counter-question of your own.
This counter-question will usually prevent the informant from asking you
any additional questions.
If the informant should ask, tell them that you need to contact the
debtor about a business matter.
n)
Close your call.
As soon as you have all of the information you want or all you think you
can get from this particular informant, end the call.
o)
Don't allow time for the informant to ask you too many questions.
Take your information and end the call.
Additional
Sources Of Information
a)
Old and new telephone directories.
b)
Criss-cross directories.
One section lists households and businesses by street name and number;
another section lists all telephone numbers by exchange and lists to whom that
number is assigned.
c)
City directories.
Information obtained by direct canvassing of the city by mail, phone and
sometimes even personal contacts.
Most residents of the city are included, even those with unlisted phone
numbers.
City directories are usually divided into four sections:
·
Business
and professional firms
·
Names
of residents and businesses listed alphabetically
·
Listing
of households and businesses by street name
·
Telephone
numbers (in numerical order) followed by the names and addresses of the person(s)
or business(es) to whom the telephones are listed
Who Do You
Contact?
a)
Go back through all/old files on debtor.
b)
Contact former or current neighbors.
c)
Contact former or current friends.
d)
Contact relatives.
e)
Former employers.
f)
Apartment managers or landlords.
g)
Local stores, service stations, barber/beauty shops, restaurants or bars
the debtor may have frequented.
h)
Social services agencies.
I)
Schools, alumni associations, PFAS, etc.