When a debtor goes missing, you may have to implement a skip collection program to find the debtor and collect the money owed to you. There are many techniques used for this purpose. Some of these techniques are legal and others are unethical and very questionable.
In order to maintain a good reputation while still collecting the money owed to your business, you have to use legal methods to collect on skip accounts. Consider the following skip tracing collections basics to help you determine the most appropriate methods for your company:
1. Complete a training course to learn skip tracing collections basics.
2. Learn skip tracing and collecting tips and techniques from other companies.
3. Familiarize yourself and your employees with the legal boundaries of skip collection.
Take part in skip collection trainingOnce you find your skip, you have to be able to collect the debt owed to you. Taking part in a skip collection training program enables you to make the transition from skip tracing to skip tracing collection as smooth as possible. Once you have established a preferred method for the transition, you can teach your employees the method by either teaching it to them yourself or having them take part in the training program you completed.
Get suggestions on effective skip trace and collection techniquesCertain techniques will help you to do skip tracing collections in a timely manner. Such things as determining if the person is an intentional skip or unintentional skip will give you an idea of where to start your search. Once you determine the skip type, you can move on to locating the paper trail using public information.
Learn the legalities of skip tracing collectionsConsumers have certain rights, even when they owe you money. Familiarizing yourself with these rights and the laws governing how you can legally do skip tracing and collections is vital to collecting your money. If you violate any of the rights set forth by the government, you may find that you have to write off the debt.
Federal Trade Commission has strict standards concerning what debt collectors can do to collect a debt. Knowing this information helps you to ensure that you are able to pursue skip tracing and collections legally. The Federal Deposit Insurance Corporation has a detailed list of consumer protection acts available on its website.
- You may want to consider hiring skip tracing services if you have a large number of skips. These companies usually work on a per-find basis, which means if they don't find the skip, you don't pay.