Post on 12-Apr-2015
description
The ABCs of Skip Tracing and Skip Tracing and Collections
by Drew Tyrrell
Octber 13, 2010
Learning the Trade
“You are about to become a debt You are about to become a debt collector, making attempts to collect debts and any information obtaineddebts, 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 Motivated
Problem solver
Great attitude
Objectives
Skip Tracing
Definition and types
Collections
Voluntary Involuntary Definition and types of “skips”
Best practices/techniques
Voluntary, Involuntary and Unable to Collect
Employing a strategypractices/techniques
Best, most economical tools
What to say and how to say things for better results
ACT Strategies ACT Strategies
Types of “Skips”
Not trying to hide (aka Unintentional) Not trying to hide (aka Unintentional)
Trying to hide from you (Intentional) Trying to hide from you (Intentional)
Trying to hide from everyone (Fraud) Trying to hide from everyone (Fraud)
The Unintentional Skips Likely relocated for a job
Unemployed and living with friends or relatives
U f th d bt Unaware of the debt
Unsure of their options Unsure of their options
Low on cashLow 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 searchesinmate 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 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 Other university/college departments
World Wide Web Web-based search engines (e.g. Google, Yahoo) Phone/address directories Phone/address directories Public records (marriage, divorce, civil/criminal actions, foreclosures) The “free” sites
Credit Bureaus Credit Bureaus Current addresses and phone numbers Employment information Spouse information
Ability to pay 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 everythingy g
Challenge the lies and call screeners
Avoid “Yes/No” questions Avoid Yes/No questions
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 addresspermanent address Obtain a physical address from a PO Box Skip letters are no longer the normp g
The Best Sources of Information Parents & relatives Neighbors & landlord
E l Employers Colleagues Former employers Former employers Former colleagues Ex-spouse – Personal Favorite!p Pastor Other acquaintances
“Right-Phrase” Your Questions
NO YES
Is Johnny working? Is Johnny at work? Where does Johnny work? Is he still working at ____? Allow the person the complete your question?complete your question?
Does Johnny have a cell phone? What is Johnny’s cell phone number?
Is Johnny at work right now? What shift is Johnny working t d /t i ht?today/tonight?
What is Johnny’s address? His address is _____ ? Allow the person to complete the address for you.
What time will Johnny be home? I am available to call back at ____, which is the best time slot to deliver this important message?
Does Johnny have an email address? I understand Johnny is busy so where should I send him an email?
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/PublicSearchProxyhttps://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 websiteshttp://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 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 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 Installment payments Compromise/settlements
Involuntary Reporting to credit Reporting to credit Tax/treasury offset Private collection agencies Holds on University/College services
Unable to Collect Private collection agencies Write-offs
Litigation 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:
Obtain demographics
Require the following:
Current address Obtain demographics
(in every contact) Social security number Date of birth Place of employment
Work phone number
Discover ability and sources of payment
Work phone number Cell phone number Email address Spouse’s information
Communicate the urgency of payment
Spouse s information Household income & expenses Assets: Real property, money
market accounts, 401kurgency of payment
Negotiating with the Borrower Use an informal tone to identify the borrower Verify location information
Identify yourself and your intentions Identify yourself and your intentions Make no demands if the borrower doesn’t understand the debt Stress urgency by explaining benefits and consequences of
i t ipaying or not paying 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 bid against yourselfo t b d aga st 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 patientp p 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 Which method of payment do you want to use to pay this amount in full today?
If you understood why you owe this debt you would pay it in full todayy y y y p y ycorrect?
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 gcollections process
Debtor demographicsParticulars of the debt 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
POP!*
Work phone Cell phone SSN *Probability of PMT!
Driver’s license Place of employment Credit reports and scoring
Probability of PMT!
p g
Particulars of DebtP l d il Pre-placement account details
Debt type Debt type
Placement Level
Date of last payment, if any
Deliquency date
Prior collection activity Prior collection activity
Status Indicators Denotes the stage of the
collection process
Status Description
NEWNew account
L l ti t k
Helps the monitoring of an account or groups of accounts
LEGLegal action taken
BKBankruptcy identified or filed
accounts
Helps filter accounts ith i l d
HOTBorrower has ability; out to raise money
PDCPending consolidation
with special needsDEC
Borrower may be deceased; obtain death certificate
INCBorrower is incarcerated need booking infoneed booking info
Action and Result Codes
Details of how an account has progressed through the collection process
Action Result
Borrower called and promised payment
Setup for payment arrangement
h d l d f d fcollection process
Identifies specific collection activity
scheduled for date of payment
Borrower’s attorney called
Attorney status; no calls to borrower
B d i d St t h d tactivity
Provides collector and manager directions for what
Borrower advised cease and desist
Status changed to cease and desist; no further borrower contact
Called borrower and f
Notes message and manager directions for what to do next
left a message schedules account out 3 days
Skipped with the Department of Education
Updated new address and phone number in account
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 High scoring accounts Bankruptcy Death
In e tion Incarceration
Agency Fee Based Tools www.Accurint.com www.Experian.com www.Transunion.com www.Equifax.com
B k www.Banko.com www.MerlinData.com www InsightAmerica com www.InsightAmerica.com www.theWorkNumber.com
The Agency AdvantageEver wonder how the Agency made it happen?
Significant investments in the following:
Industry professionals 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) 403-7770 Ext 6589(88 ) 03 0 t 6589
Atyrrell@accountcontrol.com