Skip tracing

Morisso
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Skip tracing is a process used in the field of credit and collections management, primarily for locating debtors who have become unreachable or have intentionally disappeared to avoid their financial obligations. This investigative technique involves gathering, analyzing, and verifying information to find the current whereabouts of these individuals. The process typically includes various steps such as:

  1. Data Collection: Gathering all available information about the debtor, including their last known address, phone numbers, employment details, social security number, and any other relevant personal information.
  2. Database Search: Utilizing various databases to search for new information or changes in the debtor’s status, such as address changes, new phone numbers, employment shifts, or asset acquisitions.
  3. Analysis and Verification: Analyzing the collected data to identify potential leads and then verifying these leads to ascertain their accuracy. This can include cross-referencing information from different sources to ensure reliability.
  4. Networking: Engaging with contacts or informants who might have information about the debtor’s whereabouts. This could involve speaking with friends, family members, former employers, or others who might have relevant information.
  5. Field Work: In some cases, field work such as visiting the last known address or new potential addresses identified through research may be necessary.
  6. Legal Compliance: Throughout the skip tracing process, it is essential to adhere to legal and ethical guidelines, respecting privacy laws and regulations like the Fair Debt Collection Practices Act (FDCPA) in the United States.

The primary goal of skip tracing in credit and collections is to re-establish contact with the debtor to negotiate repayment of their outstanding debts. It requires a combination of investigative skills, critical thinking, and an understanding of legal boundaries.

Skip tracing in the United Kingdom

Particularly in the context of debt collection, it is regulated by several laws and guidelines to ensure ethical practices and the protection of individual privacy. Key regulations include:

  1. Data Protection Act 2018 (DPA 2018): This Act incorporates the EU General Data Protection Regulation (GDPR) and controls how personal information is used by organizations, businesses, or the government. Skip tracers must ensure that any personal data they collect, process, or store is done so in compliance with DPA 2018, including obtaining lawful bases for processing such data.
  2. Consumer Credit Act 1974: This Act regulates consumer credit and consumer hire agreements. It includes provisions related to the collection of debts and the conduct of collection agencies and agents.
  3. Financial Conduct Authority (FCA) Regulations: The FCA sets standards for how debts should be collected. Companies involved in skip tracing and debt collection are required to follow FCA guidelines, which emphasize fair treatment of customers, transparency, and ethical collection practices.
  4. Credit Services Association (CSA) Code of Practice: Although not a legal requirement, many debt collection agencies adhere to the CSA’s Code of Practice, which sets standards for responsible and ethical practices, including those related to tracing individuals.
  5. The Privacy and Electronic Communications (EC Directive) Regulations 2003: These regulations are particularly relevant for skip tracers using electronic communications, such as email or phone calls, in their tracing activities.

Skip tracers operating in the UK must ensure they are compliant with these regulations to avoid legal penalties and to maintain ethical standards in their practices. This includes obtaining and using data legally, respecting individuals’ rights to privacy, and engaging in fair and transparent practices when attempting to locate and contact debtors.

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