Skip Tracing Collections Key Terms

Understand the lingo used in skip tracing

Skip tracing finds people who have defaulted on their obligations. Companies who have customers who owe months of back payments may hire a skip-tracing collection agency to pursue the debtors and collect the debt. The agency will cost money, so if you use one, you will only recover a portion of the money you are owed. Many companies consider it worthwhile because without the skip-tracing collections agency, they probably wouldn't recover any money. Knowing some of the vocabulary common to the profession can help if you are dealing with skip-tracing collections agencies.

 

Identifiers

Identifiers are key pieces of information that are unique to an individual. Identifiers include social security numbers, driver's license numbers, or other ID numbers issued by the state or federal government or the military. These, along with age and date of birth, are fairly permanent. Home addresses are less reliable identifiers. All identifiers can help skip tracers collect debts.
Try: Public Records Offices & Agencies offers suggestions on locating people using a variety of identifiers. Thomas Investigative Publications lists the top ten sources for finding missing debtors.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) sets limits on debt collectors' conduct and details how they may pursue delinquent debts. The act's intent is to protect consumers from abusive or deceptive collection tactics.
Try: A copy of the law is available at the Federal Deposit Insurance Company (FDIC) website.

Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) is an agency that protects consumers from unfair or illegal practices. The FTC enforces the Fair Debt Collection Practices Act (FDCPA) and checks into consumer complaints. They also investigate complaints about debtors being harassed or deceived.
Try: For information on what collection practices are allowed or disallowed legally, check out the Federal Trade Commission website.

Dunning Notices

Dunning notices are the letters sent to the delinquent customer requesting repayment of the debt. Sometimes called "mini-Mirandas," these letters must follow a certain format. After the initial notice, skip tracers must indicate the letters are from a debt collector.
Try: Starting a Collection Agency describes how to write dunning notices that follow the laws set down in the Fair Debt Collection Practices Act.

Judgment recovery

In some cases, the law has decreed that a person owes money, but the defendant subsequently defaults. Judgment recovery uses skip tracing to collect these court-awarded judgments. In some cases, the recovered money is turned over to the plaintiff; in others, the judgment recovery specialist pays the plaintiff a fee and then keeps the recovered money.
Try: National Judgment Network and Step-by-Step USA offer information on the process of skip-tracing collections and provide training for judgment recovery specialists.

Bounty hunters

Bounty hunters are also called surety investigators, fugitive recovery agents (FRAs), bail bond investigators or bail recovery agents, among other names. They use skip tracing to track down people who have jumped bail. In this case, they find the fugitive and return him or her to the court, allowing the bail bondsman to collect the money that was put up. Although bounty hunters are not permitted to carry guns, they may arrest a fugitive.
Try: Idearc Media discusses bounty hunters and their methods.

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