Debt Collection Strategy: What is a Skip Tracer?

When customers fail to pay for goods or services, the first step is to contact them about the missed payment. But what happens when a customer seemingly vanishes into thin air? This is where a highly effective debt collection strategy, led by skip tracers, comes into play. Agencies like CGI Credit Guard utilize skip tracers to locate debtors and recover outstanding debts efficiently.

What is a Skip Tracer?

A skip tracer is a professional responsible for locating individuals who have become difficult to find or unreachable. The term originates from the idea of “skipping” a location and leaving no trace. Skip tracers are essential in cases where debtors fail to respond to repeated contact attempts, leaving creditors at a loss.

Even when a business has a debtor’s last-known address, there’s a possibility the individual no longer resides there. Many times, undeliverable mail results from people moving without providing a forwarding address or supplying incorrect details. This lack of communication can delay debt resolution and harm the debtor’s credit score. Skip tracers bridge this gap by tracking down elusive individuals.

The Work of a Skip Tracer

The work of a skip tracer involves a systematic process with several key steps to locate missing debtors:

1. Verification of Existing Information

The first step is to verify and cross-check all available data provided by the client. This ensures accuracy and eliminates potential misinformation, providing a solid foundation for the search.

2. Gathering Additional Information

Next, skip tracers gather as much information as possible about the debtor using publicly available resources, such as:

Credit Reports
Public Records Databases
Loan Applications
Criminal Background Checks
Job Applications
Courthouse Records
Utility Bills

3. Leveraging Modern Tools

Modern skip tracers benefit from vast amounts of online data. Social media platforms, internet searches, and advanced databases allow for quicker and more accurate results compared to traditional manual methods. Tools like credit bureau scrubs can uncover updated contact details, significantly improving success rates.

4. Reaching Out to Connections

When information from direct sources is insufficient, skip tracers may contact the debtor’s acquaintances, such as friends, family members, former landlords, coworkers, and neighbours, to piece together the individual’s current whereabouts.

Why Locating Debtors is Essential for Debt Recovery

Efforts to locate debtors are critical to recovering unpaid debts. It becomes indispensable in situations where communication breaks down or debtors relocate without notice. Without these efforts, unpaid debts could remain unresolved indefinitely, harming businesses’ cash flow and profitability.

Not only does locating debtors help creditors recover debts, but it also enables debtors to address their financial obligations before facing further legal or financial consequences. Professionals who specialize in this work are invaluable for both parties in the debt collection process.

Hiring a Professional Locator: What You Need to Know

When considering debt location services, there are two primary options:

1. Independent Professionals

Independent specialists often charge hourly fees, making them a suitable choice for cases requiring specialized attention. Their expertise is typically tailored to specific types of cases.

2. Collection Agencies with Location Services

Many collection agencies, like CGI Credit Guard, integrate location efforts into their debt recovery solutions. These agencies typically work on a contingency fee basis, meaning you pay only if they successfully recover the debt. This can be a more cost-effective and streamlined solution for businesses.

Why Choose CGI Credit Guard for Locating Debtors?

At CGI Credit Guard, our licensed and bonded professionals deliver reliable results by combining traditional techniques with cutting-edge technology. Our comprehensive approach includes:

Credit Bureau Scrubs: We update our database every 72 hours, identifying thousands of new contact details weekly.
Post-Judgment Recovery: Our techniques maximize recoveries on skipped judgment accounts.

Don’t let bad debt hinder your business operations. Professional assistance ensures you recover what you’re owed while maintaining professionalism and compliance.

Contact CGI Credit Guard Today

When a customer disappears without settling their debt, don’t let it become a cost of doing business. Reach out to the experts at CGI Credit Guard for professional debtor location and debt recovery services. Our team of B2B collection specialists is here to help you recover outstanding debts and safeguard your business’s financial health.

Post-Judgment Recoveries Skip Tracer