Catch me if you can! Skip Tracing Strategies Using 21st

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 Agenda1. Who, what, & why of skips2. Communication & 21st Century tools3. Collection strategies for high performance4. Social networks & skip trace web sites5. Credit bureaus & social security numbers6. 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 1st and 2nd 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• Don’t know who to talk to on campus• Problem too deep to find a way out• Learned behavior from parents / peers

How can you disappear? • Don’t use credit – cash only• Don’t 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

It’s 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 21st Century Tools?

21st 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 ToolsAccurint

• 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 debtor’s 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. Facebook2. Twitter3. Linked In4. My Space5. Ning6. The Google7. Tagged8. Orkut9. Hi 5

10. My Yearbook11. Meet Up12. Badoo13. BeBo14. My Life15. Friendster

Social Networking Venn Diagram

Free Skip Trace Websites

• blackbookonline.info• zabasearch.com• searchbug.com• Timeanddate.com• Docusearch.com• Argali.com• KnowX.com

• switchboard.com• facebook.com• pipl.com• spokeo.com• yellowpages.com• Switchboard.com

Free Skip Trace Web sites (Continued)

• google.com• whitepages.com• people.yahoo.com• pipl.com• skipease.com• addresses.com• whowhere.com

• anywho.com• 411.com• blackbookonline.info• yellowbook.com• manta.com• hoovers.com

Fee-Based Skiptrace Services

Accurint LexisNexisAcxiom Insight

CollectChoice PointExperianFletch Data

Interactive DataMaster FilesRealEDASkipTraceInfoU.S. TRACERSVeri 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

“I’m 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 ORthe debt collector believes the response was erroneous or incomplete and that the person now has the correct information.

Don’t 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) 829-4453Mobile: (630) 338-3459

John.Schwarm@GeneralRevenue.com