skip tracing
Content
The ABCs of Skip Tracing and Collections by Drew Tyrrell
Octber 13, 2010
Learning the Trade
“You are about to become a debt You collector, making attempts to collect debts, debts and any information obtained hereafter will be used for that purpose.”
Qualities of a Good Debt Collector
Good computer skills Good communication skills (listening is the most important) Creative Self-confident Motivated Problem solver Great attitude
Objectives
Skip Tracing
Collections
Definition and types of “skips” Best practices/techniques Best, most economical tools ACT Strategies
Voluntary, Voluntary Involuntary and Unable to Collect Employing a strategy What to say and how to say things for better results ACT Strategies
Types of “Skips”
Not trying to hide (aka Unintentional)
Trying to hide from you (Intentional) Trying to hide from everyone (Fraud)
The Unintentional Skips
Likely relocated for a job Unemployed and living with friends or relatives Unaware of th d bt U f the debt Unsure of their options Low on cash
The Intentional Skips
Aware of the debt and can’t/won’t pay Likely have excessive other debts Friends and relatives helping them hide Bigger problems than simply debt
The Fraudulent Skips
Never had any intentions of paying Hiding from law enforcement/child support Friends and relatives have lost contact Requires “hardcore” collections
Get Organized to Skip Trace
Establish a skip tracing plan as part of your collection strategy Schedule a specific time each day or week to skip Skip tracing by phone: Friends, Relatives, Neighbors, Landlords, Employers, Colleagues, Former Employers, Pastors, and ex-spouses Skip tracing with letters: Helps verify an address and may provide a forwarding address Skip tracing online: Use search engines, free websites including phone/address directories, public record searches e.g. bankruptcy filings, marriage/divorce records, birth and death records, inmate searches
Skip Tracing Themes
Be proactive Identify what you are looking for Work the good information to obtain the missing Leave yourself a trail then retrace your steps Utilize a variety of strategies Be creative, Sherlock Holmes!
Economical Skip Tracing Tools
Your Internal Tools
Admission application Entrance/exit interviews Other university/college departments
World Wide Web
Web-based search engines (e.g. Google, Yahoo) Phone/address directories Public records (marriage, divorce, civil/criminal actions, foreclosures) The “free” sites
Credit Bureaus
Current addresses and phone numbers Employment information Spouse information Ability to pay
Skip Tracing by Phone
Don’t be afraid to dial, dial, dial – and ask a ton of questions! Be prepared – know what to expect Be professional Record everything y g Challenge the lies and call screeners Avoid “Yes/No” questions Yes/No Avoid being deceptive/misleading The hold button secret
Skip Tracing Using Letters
Send letters and keep record of what you sent and the cost (recover your costs on Federal debts) Letters may generate a new address Send a letter to the on-campus address and the permanent address Obtain a physical address from a PO Box Skip letters are no longer the norm p g
The Best Sources of Information
Parents & relatives Neighbors & landlord Employers E l Colleagues Former employers Former colleagues Ex-spouse – Personal Favorite! p Pastor Other acquaintances
“Right-Phrase” Your Questions
NO
Is Johnny working? Is Johnny at work?
YES
Where does Johnny work? Is he still working at ____? Allow the person the complete your question? What is Johnny’s cell phone number? What shift is Johnny working today/tonight? t d /t i ht? His address is _____ ? Allow the person to complete the address for you. I am available to call back at ____, which is the best time slot to deliver this important message? I understand Johnny is busy so where should I send him an email?
Does Johnny have a cell phone? Is Johnny at work right now? What is Johnny’s address? What time will Johnny be home?
Does Johnny have an email address?
Free Skip Tracing Resources
Basic Demographics www.411.com; www.whitepages.com; www.zabasearch.com; www.skipease.com; www.skip-tips.com Public Records
County Court Websites; State Department of Corrections; County Recorders; www.rootsweb.com, www.ancestry.com; Government Employees (e.g. State of California – State Telephone Directory); Bankruptcy courts
Professional Licenses
Secretary of State; Chamber of Commerce; Medical Boards, State Bar; Teacher Credentials Governing Body (e.g. State of California Teacher Credentialing Commission -
https://teachercred.ctc.ca.gov/teachers/PublicSearchProxy https://teachercred ctc ca gov/teachers/PublicSearchProxy
Social Networking
www.facebook.com; www.myspace.com; www.twitter.com; www.linkedin.com; www.classmates.com http://en.wikipedia.org/wiki/List_of_social_networking_websites http://en wikipedia org/wiki/List of social networking websites
Online Search Engines
“Google it!” – www.google.com
Great for uncommon names Enter your subject + area = FOUND! Use quotes to avoid partial or wrong party information
Other search engines www.dogpile.com; www.altavista.com; www.bing.com; http://en.wikipedia.org/wiki/List_of_search_engines
International Skip Tracing
Is the balance sufficient to warrant the expense? Identify the country of origin Identify common languages in the country Contact the ESL department at your institution Student sponsors and/or embassy Check VISA & Immigration Status (USCIS – www.uscis.gov/)
Types of Collections
Voluntary
Demand for payment by phone and letter Lump sum payment(s) Installment payments Compromise/settlements
Involuntary
Reporting to credit Tax/treasury offset Private collection agencies Holds on University/College services
Unable to Collect
Private collection agencies Write-offs Litigation
Best Practices on the Phone
Update the file in every conversation Avoid sounding robotic Adapt to where you are calling Sound like a friend or relative but don’t lie Be courteous but not a pushover, firm but not aggressive, p , gg , factual but on a need to know only basis Talk to the bill payer in the family (with permission)
Borrower Information is Power!
The Strategy:
Require the following:
Obtain demographics (in every contact) Discover ability and sources of payment Communicate the urgency of payment
Current address Social security number Date of birth Place of employment Work phone number Cell phone number Email address Spouse s Spouse’s information Household income & expenses Assets: Real property, money market accounts, 401k
Negotiating with the Borrower
Use an informal tone to identify the borrower Verify location information Identify yourself and your intentions Make no demands if the borrower doesn’t understand the debt Stress urgency by explaining benefits and consequences of paying or not paying i t i Ask for the balance Psychological pause: 1st person to speak loses Take a financial statement if BIF is not possible Document, reiterate and follow up on all arrangements
Tricks When Negotiating
Make your offer and be willing to compromise Don’t b d aga st yourself o t bid against you se Don’t give up anything for nothing Identify what motivates the borrower Use empathy but not emotion Have a backup plan and be patient pp p
Committing Questions
What are your intentions about paying this debt in full, today? Which method of payment do you want to use to pay this amount in full today? If you understood why y owe this debt y would p y it in full today y y you you pay y correct? Are there any other debts you have which you consider more important than this one today? If I created an affordable payment plan, would you commit today?
ACT’s Skip Tracing and Collection Logic and Strategies
Using a computerized collections case management system
Storing data on all agency placements Manage the progression of each account through the g p g g collections process
Debtor demographics Particulars of the debt Status indicators Queue level indicators Account action and result codes
Analyzing Debtor Demographics
Name Address City State Zip Code Home phone Work phone Cell phone SSN Driver’s license Place of employment Credit reports and scoring p g
POP!*
*Probability of PMT! Probability
Particulars of Debt
Pre-placement account d il P l details
Debt type Placement Level Date of last payment, if any Deliquency date Prior collection activity
Status Indicators
Denotes the stage of the collection process Helps the monitoring of an account or groups of accounts Helps filter accounts with special needs ith i l d
Status
NEW LEG BK HOT
Description
New account Legal action taken L l ti t k Bankruptcy identified or filed Borrower has ability; out to raise money Pending consolidation Borrower may be deceased; obtain death certificate Borrower is incarcerated need booking info
PDC
DEC
INC
Action and Result Codes
Details of how an account has progressed through the collection process Identifies specific collection activity Provides collector and manager directions for what to do next
Action
Borrower called and promised payment
Result
Setup for payment arrangement scheduled for date of h d l df d f payment Attorney status; no calls to borrower Status h St t changed t d to cease and desist; no further borrower contact Notes message and schedules account out 3 days Updated new address and phone number in account
Borrower’s attorney called Borrower advised B d i d cease and desist
Called borrower and left a message f Skipped with the Department of Education
Queue or Bin Level Indicators
Helps ACT identify when a collector should work a particular account or group of accounts and provides a filtering mechanism
Examples:
Specific time zones Business classes High scoring accounts Bankruptcy Death Incarceration In e tion
Agency Fee Based Tools
www.Accurint.com www.Experian.com www.Transunion.com www.Equifax.com www.Banko.com B k www.MerlinData.com www.InsightAmerica.com www InsightAmerica com www.theWorkNumber.com
The Agency Advantage
Ever wonder how the Agency made it happen? Significant investments in the following:
Industry professionals Employee training and development Information technology Skip tracing databases Compliance, compliance, compliance
Questions/Comments?
Thank you for your time and participation!
Drew Tyrrell (887) 03 (88 ) 403-7770 Ext 6589 0 t [email protected]
Octber 13, 2010
Learning the Trade
“You are about to become a debt You collector, making attempts to collect debts, debts and any information obtained hereafter will be used for that purpose.”
Qualities of a Good Debt Collector
Good computer skills Good communication skills (listening is the most important) Creative Self-confident Motivated Problem solver Great attitude
Objectives
Skip Tracing
Collections
Definition and types of “skips” Best practices/techniques Best, most economical tools ACT Strategies
Voluntary, Voluntary Involuntary and Unable to Collect Employing a strategy What to say and how to say things for better results ACT Strategies
Types of “Skips”
Not trying to hide (aka Unintentional)
Trying to hide from you (Intentional) Trying to hide from everyone (Fraud)
The Unintentional Skips
Likely relocated for a job Unemployed and living with friends or relatives Unaware of th d bt U f the debt Unsure of their options Low on cash
The Intentional Skips
Aware of the debt and can’t/won’t pay Likely have excessive other debts Friends and relatives helping them hide Bigger problems than simply debt
The Fraudulent Skips
Never had any intentions of paying Hiding from law enforcement/child support Friends and relatives have lost contact Requires “hardcore” collections
Get Organized to Skip Trace
Establish a skip tracing plan as part of your collection strategy Schedule a specific time each day or week to skip Skip tracing by phone: Friends, Relatives, Neighbors, Landlords, Employers, Colleagues, Former Employers, Pastors, and ex-spouses Skip tracing with letters: Helps verify an address and may provide a forwarding address Skip tracing online: Use search engines, free websites including phone/address directories, public record searches e.g. bankruptcy filings, marriage/divorce records, birth and death records, inmate searches
Skip Tracing Themes
Be proactive Identify what you are looking for Work the good information to obtain the missing Leave yourself a trail then retrace your steps Utilize a variety of strategies Be creative, Sherlock Holmes!
Economical Skip Tracing Tools
Your Internal Tools
Admission application Entrance/exit interviews Other university/college departments
World Wide Web
Web-based search engines (e.g. Google, Yahoo) Phone/address directories Public records (marriage, divorce, civil/criminal actions, foreclosures) The “free” sites
Credit Bureaus
Current addresses and phone numbers Employment information Spouse information Ability to pay
Skip Tracing by Phone
Don’t be afraid to dial, dial, dial – and ask a ton of questions! Be prepared – know what to expect Be professional Record everything y g Challenge the lies and call screeners Avoid “Yes/No” questions Yes/No Avoid being deceptive/misleading The hold button secret
Skip Tracing Using Letters
Send letters and keep record of what you sent and the cost (recover your costs on Federal debts) Letters may generate a new address Send a letter to the on-campus address and the permanent address Obtain a physical address from a PO Box Skip letters are no longer the norm p g
The Best Sources of Information
Parents & relatives Neighbors & landlord Employers E l Colleagues Former employers Former colleagues Ex-spouse – Personal Favorite! p Pastor Other acquaintances
“Right-Phrase” Your Questions
NO
Is Johnny working? Is Johnny at work?
YES
Where does Johnny work? Is he still working at ____? Allow the person the complete your question? What is Johnny’s cell phone number? What shift is Johnny working today/tonight? t d /t i ht? His address is _____ ? Allow the person to complete the address for you. I am available to call back at ____, which is the best time slot to deliver this important message? I understand Johnny is busy so where should I send him an email?
Does Johnny have a cell phone? Is Johnny at work right now? What is Johnny’s address? What time will Johnny be home?
Does Johnny have an email address?
Free Skip Tracing Resources
Basic Demographics www.411.com; www.whitepages.com; www.zabasearch.com; www.skipease.com; www.skip-tips.com Public Records
County Court Websites; State Department of Corrections; County Recorders; www.rootsweb.com, www.ancestry.com; Government Employees (e.g. State of California – State Telephone Directory); Bankruptcy courts
Professional Licenses
Secretary of State; Chamber of Commerce; Medical Boards, State Bar; Teacher Credentials Governing Body (e.g. State of California Teacher Credentialing Commission -
https://teachercred.ctc.ca.gov/teachers/PublicSearchProxy https://teachercred ctc ca gov/teachers/PublicSearchProxy
Social Networking
www.facebook.com; www.myspace.com; www.twitter.com; www.linkedin.com; www.classmates.com http://en.wikipedia.org/wiki/List_of_social_networking_websites http://en wikipedia org/wiki/List of social networking websites
Online Search Engines
“Google it!” – www.google.com
Great for uncommon names Enter your subject + area = FOUND! Use quotes to avoid partial or wrong party information
Other search engines www.dogpile.com; www.altavista.com; www.bing.com; http://en.wikipedia.org/wiki/List_of_search_engines
International Skip Tracing
Is the balance sufficient to warrant the expense? Identify the country of origin Identify common languages in the country Contact the ESL department at your institution Student sponsors and/or embassy Check VISA & Immigration Status (USCIS – www.uscis.gov/)
Types of Collections
Voluntary
Demand for payment by phone and letter Lump sum payment(s) Installment payments Compromise/settlements
Involuntary
Reporting to credit Tax/treasury offset Private collection agencies Holds on University/College services
Unable to Collect
Private collection agencies Write-offs Litigation
Best Practices on the Phone
Update the file in every conversation Avoid sounding robotic Adapt to where you are calling Sound like a friend or relative but don’t lie Be courteous but not a pushover, firm but not aggressive, p , gg , factual but on a need to know only basis Talk to the bill payer in the family (with permission)
Borrower Information is Power!
The Strategy:
Require the following:
Obtain demographics (in every contact) Discover ability and sources of payment Communicate the urgency of payment
Current address Social security number Date of birth Place of employment Work phone number Cell phone number Email address Spouse s Spouse’s information Household income & expenses Assets: Real property, money market accounts, 401k
Negotiating with the Borrower
Use an informal tone to identify the borrower Verify location information Identify yourself and your intentions Make no demands if the borrower doesn’t understand the debt Stress urgency by explaining benefits and consequences of paying or not paying i t i Ask for the balance Psychological pause: 1st person to speak loses Take a financial statement if BIF is not possible Document, reiterate and follow up on all arrangements
Tricks When Negotiating
Make your offer and be willing to compromise Don’t b d aga st yourself o t bid against you se Don’t give up anything for nothing Identify what motivates the borrower Use empathy but not emotion Have a backup plan and be patient pp p
Committing Questions
What are your intentions about paying this debt in full, today? Which method of payment do you want to use to pay this amount in full today? If you understood why y owe this debt y would p y it in full today y y you you pay y correct? Are there any other debts you have which you consider more important than this one today? If I created an affordable payment plan, would you commit today?
ACT’s Skip Tracing and Collection Logic and Strategies
Using a computerized collections case management system
Storing data on all agency placements Manage the progression of each account through the g p g g collections process
Debtor demographics Particulars of the debt Status indicators Queue level indicators Account action and result codes
Analyzing Debtor Demographics
Name Address City State Zip Code Home phone Work phone Cell phone SSN Driver’s license Place of employment Credit reports and scoring p g
POP!*
*Probability of PMT! Probability
Particulars of Debt
Pre-placement account d il P l details
Debt type Placement Level Date of last payment, if any Deliquency date Prior collection activity
Status Indicators
Denotes the stage of the collection process Helps the monitoring of an account or groups of accounts Helps filter accounts with special needs ith i l d
Status
NEW LEG BK HOT
Description
New account Legal action taken L l ti t k Bankruptcy identified or filed Borrower has ability; out to raise money Pending consolidation Borrower may be deceased; obtain death certificate Borrower is incarcerated need booking info
PDC
DEC
INC
Action and Result Codes
Details of how an account has progressed through the collection process Identifies specific collection activity Provides collector and manager directions for what to do next
Action
Borrower called and promised payment
Result
Setup for payment arrangement scheduled for date of h d l df d f payment Attorney status; no calls to borrower Status h St t changed t d to cease and desist; no further borrower contact Notes message and schedules account out 3 days Updated new address and phone number in account
Borrower’s attorney called Borrower advised B d i d cease and desist
Called borrower and left a message f Skipped with the Department of Education
Queue or Bin Level Indicators
Helps ACT identify when a collector should work a particular account or group of accounts and provides a filtering mechanism
Examples:
Specific time zones Business classes High scoring accounts Bankruptcy Death Incarceration In e tion
Agency Fee Based Tools
www.Accurint.com www.Experian.com www.Transunion.com www.Equifax.com www.Banko.com B k www.MerlinData.com www.InsightAmerica.com www InsightAmerica com www.theWorkNumber.com
The Agency Advantage
Ever wonder how the Agency made it happen? Significant investments in the following:
Industry professionals Employee training and development Information technology Skip tracing databases Compliance, compliance, compliance
Questions/Comments?
Thank you for your time and participation!
Drew Tyrrell (887) 03 (88 ) 403-7770 Ext 6589 0 t [email protected]
