Catch me if you can! Skip Tracing Strategies Using 21 st Century Tools John G. Schwarm, D.B.A. General Revenue Corporation November 7, 2011
Session Description We live in a world where virtually all our students are in constant connection with their respective social networks. However, they are largely disconnected from their financial life and even harder to reach when you are looking for a payment. In this session, you will listen to a discussion of new strategies, tips, and tricks from the professionals on how they track down these missing persons.
Session Agenda 1.Who, what, & why of skips 2.Communication & 21 st Century tools 3.Collection strategies for high performance 4.Social networks & skip trace web sites 5.Credit bureaus & social security numbers 6.Government regulations & rules of engagement. 7.Questions
Skips: definition and goals. Account holders that do not have current contact information with the creditor. – Strategic search involving numerous leads Goal: Locating and validating – Contacting 1 st and 2 nd degree relatives – Validate residence and place of employment – Obtain personal information to enable collection – Once contacted, good chance of recovery
Why do people skip? Procrastination Fear / Panic Path of least resistance Confusion Dont know who to talk to on campus Problem too deep to find a way out Learned behavior from parents / peers
How can you disappear? Dont use credit – cash only Dont own property – no bank accounts Couch surf / roommate responsible Spouse responsible for everything Parents hiding adult children Straw purchase (Parents buying car for child) Living in shelter / foreign assignment
Its All Greek To Me… Ethos: An appeal based on the perceived character of the sender of the message. Logos: An appeal based on the logic of the argument Pathos: An appeal based on the use of emotions
Competencies of a skip tracer Intelligence Common Sense Patience Self-control Friendly Personality Persistence Detail-oriented Assertiveness Persuasiveness Helpfulness Creativity Competitiveness Goal Oriented
What are 21 st Century Tools? 21 st Century Tools: Computer/ data bases / internet searches E-mail / next day air Telephone / Mobile Social Networking Sites Job verification letters Credit bureau reports
Typical Account Scrub – Placement process All accounts receive Electronic Scrubs regardless of balance - NCOA, NSLDS, Clearing House, Death Master, Incarceration, Disability and Banko upon placement Upon placement, all accounts are sent to Trans Union, Experian, Equifax for recovery score to group accounts and devise appropriate work strategies
High Performance Collection Agency Methodology Accounts Distributed Skip Trace or Contact to Federal Unit Skip Trace Division and Front Line Collection Division Management Review Weekly Inventory Spins Calling Strategies Telephone contact is attempted via Time Management and dialer campaigns launched Skip-tracing Skip-trace waterfall initiated coupled with manual skip- tracing
Skip Trace Waterfall Tools Accurint A LexisNexis brand skip-tracing tool designed to locate more debtors, increase amounts collected, increase efficiency and shorten the collection cycle Acxiom Insight Collect Interfaces with FACS to effect a waterfall scrub and locate process Banko Processing to determine if a debtor has filed bankruptcy CBC Innovis Provides unique address and telephone numbers in order to maximize ability to contact debtors Equifax Provides CBR reports and other location tools Experian Provides CBR reports and other location tools DeathMaster Verification of deceased debtors by SSN, including date and place of death Electronic Directory Assistance Integrated into FACS to find telephone numbers for homes and businesses Teletrack Credit bureau for sub-prime lenders not reporting to the major credit bureaus TALX The Work Number Automated employment and income verifications TransUnion A debtor locating tool with the following features: Individual Monitoring SSN Search ID Search Contact Locator Comprehensive Locator Report Verifacts A tool used to located a debtors telephone number and place of employment
Social Networks & Skip Tracing Use social network to find subject, do not use this medium to communicate or collect. Business officers rarely use any social media to locate debtors – Use alternative products such as Trans Union, Equifax, and Experian – Address, employment, and Social Security Number searches through credit bureaus
Top 15 Popular Social Network Web Sites 1.Facebook 2.Twitter 3.Linked In 4.My Space 5.Ning 6.The Google 7.Tagged 8.Orkut 9.Hi 5 10. My Yearbook 11. Meet Up 12. Badoo 13. BeBo 14. My Life 15. Friendster
Fee-Based Skiptrace Services Accurint LexisNexis Acxiom Insight Collect Choice Point Experian Fletch Data Interactive Data Master Files RealEDA SkipTraceInfo U.S. TRACERS Veri Facts
More Research Tips Charged Internet Search: If other attempts have failed to yield information, use a fee-based search engine if one is available. Tax Assessor: Determine if the borrower owns property. Consider calling the landlord for the borrower and leave a message if necessary
Credit Bureaus Credit Bureau Report: If other attempts have failed, order a CBR for the borrower. The CBR does not benefit a collector unless the information is used. Credit Bureaus: EQUIFAX www.equifax.com TRANSUNION www.transunion.com EXPERIAN www.experian.com
What does your SSN reveal? Social Security "Area Code" Number Chart The first three digits of a Social Security Number correspond to locations as follows: SSN State or Territory SSN State or Territory 001-003 New Hampshire 449-467, 627-645 Texas 004-007 Maine 468-477 Minnesota 008-009 Vermont 478-485 Iowa 010-034 Massachusetts 486-500 Missouri 035-039 Rhode Island 501-502 North Dakota 040-049 Connecticut 503-504 South Dakota 050-134 New York 505-508 Nebraska 135-158 New Jersey 509-515 Kansas 159-211 Pennsylvania 516-517 Montana 212-220 Maryland 518-519 Idaho 221-222 Delaware 520 Wyoming 223-231, 691-699 Virginia 521-524, 650-653 Colorado
What does your SSN reveal? SSN State or Territory SSN State or Territory 232-236 West Virginia 525, 585, 648-649 New Mexico 232, 237-246, 681-690 North Carolina 526-527, 600-601, 764-765 Arizona 247-251, 654-658 South Carolina 528-529, 646-647 Utah 252-260, 667-675 Georgia 530, 680 Nevada 261-267, 589-595,766-772 Florida 531-539 Washington 268-302 Ohio 540-544 Oregon 303-317 Indiana 545-573, 602-626 California 318-361 Illinois 574 Alaska 362-386 Michigan 575-576, 750-751 Hawaii 387-399 Wisconsin 577-579 District of Columbia 400-407 Kentucky 580 Virgin Islands 408-415, 756-763 Tennessee 580-584, 596-599 Puerto Rico 416-424 Alabama 586 Guam 425-428, 587-588, 752-755 Mississippi 586 American Samoa 429-432, 676-679 Arkansas 586 Philippine Islands 433-439, 659-665 Louisiana 700-728 Railroad Board* 440-448 Oklahoma 729-733 Enumeration at Entry
Im from the government and I am here to help Fair Debt Collection Practices Act(FDCPA), 15 U.S.C. §§ 1692-1692p. Telephone Consumer Protetion Act (TCPA) 47 U.S.C. § 227 Consumer Protection Bureau (Dodd / Frank Wall Street Reform and Protection Act) Fair Credit Reporting Act (FCRA)
Just call me…Joe… Collection agencies can call anyone in an attempt to secure the debtors location. However they must: – Follow FDCPA – Disclose who they are if asked – Just confirming location information on debtor – Never disclose the information to a third party.
Can I call you during dinner? Generally, the agencies can not call you more than once unless that person agrees to allow additional contact OR the debt collector believes the response was erroneous or incomplete and that the person now has the correct information. Dont contact the consumer / debtor if they are represented by an attorney known to the debt collector. The collector may not make any additional contacts.
Call me anytime… If I have your authorization in writing If we have done business together If there is a legitimate business need To process credit transactions To discuss any issues with new purchaser or servicer of existing accounts
Questions John G. Schwarm, M.B.A. / D.B.A. General Revenue Corporation Office: (847) 829-4453 Mobile: (630) 338-3459 John.Schwarm@GeneralRevenue.com