Technology advancements can sometimes feel like they are happening at lightning speed – and trying to keep up with the latest and greatest trends keeps us on our toes. As technology advances, skiptracing continues to evolve and improve its methodologies.
Not so long ago, skiptracing was a very manual process that included calling “nearbys,” sifting through catalogs and using dedicated skip representatives.
Today, skiptracing is more progressive, with automated batch-based skipping and comprehensive waterfalls. Looking into the near future, skiptracing will continue to evolve and rely on new information sources and communications channels, as well as a scored and segmented approach.
To remain competitive, it is essential to stay on top of technology advances and understand the methodologies for identifying and maintaining current addresses and phone numbers for contacts. One of the most significant changes affecting skip tracing today is the way in which consumers prefer to communicate. Fewer consumers are using traditional landlines; they are instead opting for mobile phones. They are also communicating via text messaging, e-mail and social media.
This has resulted in significant challenges for skiptracing and the debt-collection industry as a whole. Perhaps the biggest challenge is that there isn’t a definitive mobile phone directory, so contacting consumers is often difficult, if not impossible.
Another major challenge impacting the debt-collecting industry is that the new laws and regulations are sometimes unclear and not necessarily conducive to contacting consumers on their mobile phones. The Telephone Consumer Protection Act of 1991 (TCPA) restricted the use of automated dialing systems, artificial prerecorded voice and SMS messages left on mobile phones. In response, the American Credit and Collections Association (ACA) filed a petition with the Federal Communications Commission (FCC) seeking clarification on whether this mobile phone restriction applied to debt collection under the “express prior consent” clause of the law. In 2008, the FCC ruled in favor of the ACA, indicating that, under the TCPA, a person who voluntarily gives his or her wireless number as a means to be contacted constitutes prior consent.
This ruling led to a lawsuit heard by the Northern District of California federal court, which eventually ruled that the FCC overstepped its authority.
Laws surrounding the debt-collection industry are constantly changing and, in some cases, confusing. Therefore, it is essential to work with a skiptracing partner that is fully apprised of the most recent laws and regulations and has a proven record of success.
When trying to find the best skiptrace partner:
– Define your skiptracing strategy.
– Seek out reputable companies that gather data legally and ethically.
– Maintain a skeptical outlook and investigate your options. If the source seems too good to be true, it probably is.
– Choose a partner that is mindful of the shifting regulatory landscape.
Skiptracing will continue to evolve, along with new data sources and communication channels. In addition, new methodologies such as consortiums and scored and segmented skiptracing are already gaining traction. With the ever-changing regulatory environment in mind, it is more important than ever to contact the right party and eliminate incorrect contacts.
In the end, identifying and working with the right partner can have a critical impact on your skiptracing process. Evaluating your skiptracing partner fairly and accurately will affect your ROI analysis and help determine if your skiptracing efforts are truly effective.
Bio: David Ingram is the Director of Collections Strategy for the Collection Solutions Suite at Experian, which includes the Collection Advantage, Collection Triggers and MetroNet platforms. He joined Experian in 2007.
Prior to joining Experian, Mr. Ingram served as the Director of Operations for BCA Financial Services, based in Miami, Florida, overseeing operational activities for $400mm+ in active inventory. Mr. Ingram also served as the Manager of Operational Support for Americall Group, Inc/SR Teleperformance, a Paris-based company that is the largest outbound dialing organization in the world. Prior to that, Mr. Ingram served as the Director of Support Services for Machol & Johannes, P.C., a large collections law-firm specializing in purchased debt.
David attended several colleges in Arizona and Colorado for his undergraduate studies. He is currently pursuing an MBA at Pepperdine University.
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.
For more information, visit www.experianplc.com.
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