Page 112 - CARS Standard Program

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 Recovery Agency owner. Violating this policy is grounds for immediate termination of employment and may subject a Recovery Agent to state or federal prosecution.