Skip Trace Early In the Collections Cycle

If you are a manager of a debt collections department for a company, you know the importance of early contact with delinquent debtors in receiving payments and protecting collateral. Unfortunately, many collection departments do not pay much attention to skip tracing efforts within the first 30 days of the collection process.

Accounts that roll into 30 day collections are often handled by automated dialer systems that will mindlessly dial wrong or disconnected numbers over and over, unless there is a process in place that allows collectors to report and correct system mistakes. Sometimes these wrong numbers are a simple data entry mistake that could be corrected by pulling the loan file and reviewing the application information for the original contact information.

Other times incorrect information was given on the loan application by the signer and cosigner on the loan, in which case it is very important to start skip trace work immediately to successfully locate the borrower and protect any collateral they may have.

In any case, you should have a system in place that catches these problems early on in the collection process. You may want to set up an early skip trace queu, where automated dialer collectors can send delinquent accounts with bad contact information to be worked manually outside of the automated system by one of your better skip tracers. Even providing your automated dialer collectors with a simple skip trace form that allows them to record potentially problematic accounts to be worked manually by a skilled skip tracer can benefit your collection efforts.

Remember, the name of the game is bringing as many delinquent accounts current as possible; protecting your company’s collateral and keeping bad debt chargeoffs to a minimum. To that end, early skip tracing efforts can prove invaluable to your debt collection efforts.