Whether you’re an attorney collecting unpaid fees from a client or your firm specializes in debt collection, it can be tough to locate debtors. You may not have the time to devote to tracking down individuals with significant debt.
Skip tracing techniques can be used for debt collection to help quickly locate debtors and begin the collections process. However, it’s vital that all skip tracing methods used remain within legal compliance to protect you from legal liability risks.
Utilizing a legal support services firm with skip tracing resources can help. If you need to serve a complaint, or just need to find a debtor in order to collect money, partnering with a leading company that offers a combination of legal resources can save you time and money.
So what is skip tracing in debt collection, and how does it work? Let’s take a look.
What is skip tracing in debt collection?
Skip tracing in debt collection involves legal methods to swiftly find debtors and seamlessly begin the collections process. Skip tracing techniques are often used by legal services professionals, such as private process servers, to quickly locate an intended recipient of legal documents.
Creditors may utilize skip tracing to find debtors who have suddenly moved, changed their contact information, or are eluding collections to avoid paying their debts.
Skip tracing methods used for debt collection
If you choose to partner with a legal services firm for skip tracing, it’s crucial to know the methods that they may employ to track down debtors. The most common methods used by process servers and other legal professionals for skip tracing include:
- Digital Footprint Analysis: Digital footprint analysis can be an extremely effective way to track down debtors when traditional skip tracing methods fail. Investigating an individual’s online activity can help to quickly locate a debtor. For example, if an individual comments on the social media pages of multiple businesses in a localized area, it may help a skip tracer to pinpoint their location.
- Extensive Public Records Search: A public records search involves reviewing any and all public records that pertain to the debtor to help find accurate contact information. For example, property records and marriage certificates may be located and used to determine how to locate a debtor.
- Private Database Research: Private database research might include job history information and phone number databases that can help to track down an individual.
- Social Media Search: Researching social media activity on platforms like Facebook, Instagram, and LinkedIn can help track down debtors. For example, a process server might review check-ins and geotags to determine how to find an intended recipient.
The importance of legal compliance in skip tracing
Legal compliance is critical to successful skip tracing. Whether you’re partnering with an outside legal services firm, or choose to use in-house paralegals to help facilitate skip tracing, it’s vital to have a thorough understanding of the federal and state laws that impact the methods you can use.
For example, a law firm that hires a private process server who fails to meet compliance standards might face significant legal challenges that prevent case progress. A lack of compliance in skip tracing can lead to inaccurate document delivery, privacy violations, unethical behavior, potential lawsuits, and even the outright dismissal of your case.
Skip tracing process in debt collection
The skip tracing process for debt collection uses the following steps:
- Contact Information Verification: Before attempting to serve a debtor legal documents, a process server will attempt to confirm the individual’s last known address, phone number, email address, and other contact details.
- Database Searches: If the initial contact verification attempt fails, a skip tracer will search public and private databases, social media, and more to determine accurate debtor location.
- Thorough Investigation: It may prove difficult to locate an individual through basic methods. Thus, skip tracing methods may then include exhaustive online research, rigorous review of public records, and reaching out to known contacts, including family members and employers (within state and federal regulations).
- Location Confirmation: The above skip tracing methods should help a process server or skip tracer to quickly locate a debtor. Once an individual’s location has been confirmed, contact attempts will begin.
When is skip tracing necessary for debt collection?
Skip tracing is often necessary for debt collection and can help to significantly improve collection efforts. When outstanding debts move to collections, it may be necessary to use skip tracing techniques as a debtor’s contact information is outdated or inaccurate.
Similarly, a debtor may attempt to avoid paying their debts by continually changing contact information or relocating.
Laws that can impact skip tracing for debt collection
Attorneys who use skip tracing to locate debtors should understand the state and federal laws that may impact the methods they can use. Local privacy laws may vary from state to state, but nationwide, skip tracers must adhere to compliance with federal fair debt collection practices.
Here are some of the federal laws that impact skip tracing for debt collection.
Fair Credit Reporting Act (FCRA)
The FCRA regulates the collection, disclosure, and use of consumer credit information. This federal law impacts skip tracing for debt collection by limiting the ability of process servers and skip tracers to obtain credit reports and personal financial data without required authorization and clear purpose.
Fair Debt Collection Practices Act (FDCPA)
The FDCPA is in place to protect consumers from abusive, deceptive, or unfair debt collection practices. The FDCAP prohibits skip tracing for debt collection from using false information, harassment, and intimidation to locate debtors.
For example, it’s illegal for a skip tracer to contact a family member and falsely claim that a debtor faces imprisonment if they don’t immediately contact a debt collector.
Gramm-Leach-Bliley Act (GLBA)
The GLBA protects the personal financial information of all consumers from unscrupulous and unethical third-party sharing. Skip tracing can remain in compliance with the GLBA by using ethical methods to obtain debtor information, obtaining any required explicit consent to access information, proving appropriate authorization and purpose in order to access financial information, and avoid harassment or predatory tactics.
For example, a skip tracer might be found liable for harassment if they call a debtor 50 times a day.
How a skip tracing professional can help
A skip tracing professional can lend tremendous aid to attorneys and allow lawyers to devote their time and focus to court proceedings, legal strategies, and building the strongest case possible for their clients.
For example, when you partner with a private process server, this professional can handle all recorded communication and service attempts, court filings, debtor research, all paperwork related to skip tracing, reduce your related workload, and ensure compliance in the skip tracing methods used.
Contact Firefly Legal for skip tracing
Nationwide industry leader Firefly Legal can provide skip tracing for debt collection in every state. We’re dedicated to compliance, efficiency, and integrity in every legal service we provide, and will take care of the details so that you can concentrate on building a strong case.
Firefly Legal is committed to lasting relationships with attorneys that lead to seamless, successful debt collection. Along with skip tracing, we’re your premium stop for process servers, court filing, document retrieval, and additional legal support.
Contact Firefly Legal today to explore how our skip tracing services can support your success.
