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Although this new technology may not fit the traditional definition of the skip-tracer, it
has become a very effective tool for the creditor and the Recovery Agent working the
streets. Skips who have financed a vehicle in one state have been found in another state
clear across the country through LPR technology.

As I wrote in my book, “Bridging the Gap,” it’s an exciting challenge to match wits
with another human when your primary “tool” is your imagination.

What Can Skip-Tracers Legally Do?
To locate a debtor, a skip-tracer may contact anyone, such as the debtor’s employer, ex-
employer, neighbors, friends, relatives, etc. However, he should not reveal that he is
representing a Recovery Agency or a creditor. He is merely confirming a residence
address or place of employment, telephone number, etc. He may identify his client only if
he is directly asked to do so, and he may NEVER divulge that the debtor owes a debt, not
even if the debtor’s employer, relatives or friends expressly ask.

It is critical for skip-tracers to be knowledgeable of the federal and state laws that
impact the skip-tracing and collateral recovery process. To learn about the Skip-
Tracers National Certification Program please visit www.RiscUS.com.

To what extent should you skip-trace? The motto “We will find him if it takes every
penny you have” may be humorous, but it is not practical. There must be a limit to the
amount of time, effort and money expended in attempting to locate a debtor.
Consideration must be given to the value of the collateral, whether you have exhausted
all credible leads and whether the collateral is effectively hidden or locked inside a
building.

Pre-Texting:
As discussed in Section 1, pre-texting is the practice of obtaining information under false
pretenses, i.e. using a false name, giving out false information or false identification. In the
collateral recovery process, pre-texting is sometimes used to locate debtors who have
“skipped” with the defaulted collateral.

The federal Telephone Records & Privacy Protection Act was passed in response to
the well-known pre-texting case involving Hewlett-Packard. The Act can be found in
Section 1.

Some states make allowances for minor pre-texting schemes. However, under no
circumstances can a Recovery Agent or skip-tracer use pre-texting to locate and
recover defaulted collateral without express, written authority from the creditor
and R ecovery A gency owner. Violating this policy is grounds for immediate
termination of employment and may subject a Recovery Agent to state or federal
prosecution.