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.

Action Steps
The best contacts and resources to help you get it done

Take part in skip collection training

Once 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.

I recommend: Remit offers online seminars and training sessions for business skip trace and collection. A detailed course outline can be downloaded from the website if needed. You can find a complete debt collection course available for immediate download at Management Strategies.

Get suggestions on effective skip trace and collection techniques

Certain 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.

I recommend: Public Records Offices & Agencies has a detailed list of ways to conduct skip tracing collections from start to finish. Thomas Investigative Publications offers skip trace collection tips and techniques. This website also offers links to skip tracing databases and skip tracing tools that may help you in your search.

Learn the legalities of skip tracing collections

Consumers 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.

I recommend: The 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.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  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.

Establishing a successful business skip trace services department for your collection agency can take your business to the next level. Skip tracing and collections are essentially like two sides of the same coin, working creating a team effort.

Skip tracing is a bit different from collections, requiring a different approach, skills and resources to create a successful department. When developing a skip tracing service, you can customize it to meet the specific needs of your company by following a few guidelines:

1. Create a separate business skip trace department from the skip tracing collections department.

2. Build up skip tracing services by hiring experienced skip tracers.

3. Develop skip tracing tools and resources.

Action Steps
The best contacts and resources to help you get it done

Create a separate service for the skip tracing collections

Your skip tracing service should be separate from the collections department. It should be a quiet environment that allows them to think and strategize without a lot of background noise. Still, they should be close enough to the collections department in case they need to contact one another to compare notes from their skip tracing databases about accounts. Create 3 levels of skip tracing services. Each level will have different levels of skills and resources. Each level will vary in intensity.

I recommend: Skip tracers rely on a database to provide the information the need about their accounts. However Gotcha, an Internet-based program is just as effective without downloading expensive software programs.

Build your skip tracing department by recruiting from within

Look at your current employees when hiring skip tracers. Consider collectors who seem to ask lots of questions when dealing with their accounts. Skip tracers need to be naturally inquisitive. Consider hiring experienced skip tracers with at least two years of experience and offering them a percentage of the debts they collect if you are just starting out.

I recommend: JudgementProcessing.com is a great source for judgement recovery information and additional skip tracing and collections training.

Locate accounts

It may go without saying, but you should always be on the lookout for new skip trace leads for your skip tracing business.

I recommend: Establish a website and a marketing plan to let other businesses know about the services you offer. Direct Response Group can help you promote your website so that your business is easily located bby clients searching online.

Develop skip tracing and collections resources

There are lots of free resources available at your fingertips! For instance, subscription websites and debt recovery forums where you can make important contacts, network and stay in the loop about important information pertaining to your industry. Resources like these can provide a wealth of the very latest skip trace information as well as collection advisory sites.

I recommend: Skip tracers can turn to skip tracing tools like Best People Search and Hi Tek's Investigative Resources to help them create skip tracing databases and locate people who need to pay their debts.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be sure that you are fully aware of your state's regulations for starting a licensed skip tracing business.

Skip tracing collections education and training provides the necessary resources to help businesses collect debts. Locating the debtor is the first step in collecting on a delinquent account. A debtor may relocate or obtain new contact information, leaving creditors with no way of contacting the individual to collect on the debt.

By accessing skip tracing collections education and training resources, businesses can learn about the various methods used to locate an individual and his or her assets for collection of debts. Skip tracing collections education and training also helps you to learn how to employ skip tracing methods compliant with federal debt collection regulations such as the Fair Credit Extension Uniformity Act and the Fair Debt Collection Practices Act. To help you obtain the necessary skip tracing collections education and training, you should:

1. Seek instruction involving the laws of skip tracing collections.

2. Attend workshops highlighting skip tracing collections best practices.

3. Reach out to collections skip tracing consultants for assistance.

Action Steps
The best contacts and resources to help you get it done

Gain knowledge about skip tracing collections laws

Because debt collection is highly regulated, it's important that you ensure that you are legally compliant in your methods for skip tracing collections. Attending skip collection legal training will help you understand and gain awareness about the various federal laws that regulate skip tracing collections methods.

I recommend: You may consider attending a collections law seminar provided by Fred Pryor Seminars. You can also learn more about skip tracing and collections laws by signing up for a seminar provided by NBI.

Enroll in skip tracing collections training workshops

Most anyone can conduct skip tracing collections; however, proper training is required to successfully locate the individual who owes your company money. Attending workshops can help you obtain valuable insider information about the skip tracing business.

I recommend: You may consider signing up for a course in Skip Tracing and Locating Assets Techniques offered by Lorman Education Services. You may also contact National Credit and Collection Services to learn more about the company’s in-house workshops and telephone conference seminars on effective skip tracing collections.

Consult with skip tracing collections investigators

Skip tracing collections investigators have access to skip tracing databases and other skip tracing tools that enable them to accurately verify leads on finding debtors. They are trained and experienced in using several skip tracing collection techniques to locate individuals who have bad debt. This saves businesses time and money as the skip tracing services provider handles all the legwork involved in finding the debtor.

I recommend: You may consider contacting MAD Collection Agency, a firm specializing in skip tracing collections, for more information about how to locate debtors using skip collection methods. You may also contact Coast Professional to learn more about skip tracing services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Skip tracing collections is merely the first step of many to collect a debt. Business skip trace services addresses the fact-gathering to help you locate debtors. By using information gained from skip tracing for collections, you can determine the best course of action for collecting payment on delinquent accounts.