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Collections involves many different moving pieces — collection agencies need to locate debtors, manage collections accounts, get in contact with debtors, gather consumer information, and more. Handling all these moving pieces can be exhausting and overwhelming for even the best debt collectors, why it’s so important to capitalize on tools and technologies that make the process easier where possible.
When you build a toolbox to streamline your collections process, you can maximize your collections strategy and recover more debt. From skip tracing tools to debt management and consumer data, here are 4 of the best debt collection tools and technologies for better debt collection.
Skip tracing for debt collection
Every collections firm needs to locate debtors in order to collect on debts, but when a debtor has “skipped town” or isn’t living at the address you have on file, locating that person is significantly more difficult. In these situations, collections firms use skip tracing. So what is skip tracing for collections? Skip tracing for collections is when collections agencies use a variety of tools to locate a debtor who has “skipped town” and is living somewhere other than the address which you currently have.
Skip tracing is a lot easier said than done — you may spend hours trying to locate someone at an address only to run into a deadend and have to start the whole process over. Whether you’re trying to find a debtor who is on the run or a debtor with outdated address records, you can use a public and private records database for skip tracing.
In a public and private records database, you can not only gather current addresses, but also search address history, which can help you make guesses as to where a debtor may be moving to. You could also use utility listings data and other alternative data sources to help fill in missing holes. For example, if someone has outdated address records but recently turned on a utility at a new location, you use utility listings data to pinpoint the address of that new location. You can even find relatives and business associates in order to build a web of connections and gather information from these people about the debtor’s possible whereabouts.
Batch skip tracing as a debt collection technique
Many collections agencies, particularly large collection agencies, need to skip trace high volumes of accounts. But no one wants to perform manual searches over and over and over again. So how can you save time skip tracing many debtors at once? With batch skip tracing, which is when you locate a large amount of difficult-to-find individuals all at once. Batch skip tracing saves you time and money performing individual searches on debtors, and you can do it with the right tools.
A public and private records database can help you perform batch skip tracing by allowing you to batch process high-volume searches at once. You batch process addresses, contact information, business records, and asset search, which can be used to batch skip trace difficult-to-find individuals and recover more debt. When you perform batch skip tracing, you’ll be able to collect on more accounts and bring in more profit in less time.
Debt management and collections system to streamline the collections cycle
Debt collectors have full plates — they need to segment accounts, contact debtors, and collect payments. Manually handling all these tasks is time-consuming, inefficient, and costly, and sometimes things can fall off your plate. Rather than trying to track and do everything on your own, use collections management software.
Collections management software helps collection agencies manage their collections and automate routine tasks. For example, you can use collections management software to automate daily workflows, track payments, and contact debtors. Rather than manually tracking activity and using a variety of different tools to perform each task, you can use collections management software to view and manage every step of your collections cycle in one centralized platform.
When you pair a collections management software with a public and private records database, you’ll be able to quickly collect the data you need and automate the tasks that follow — allowing you to focus your resources on high-priority accounts.
Consumer data as a debt collection tool
How can you collect on accounts efficiently if you don’t know enough about the individuals behind the accounts? You need to be sure you’re prioritizing the right accounts, contacting the right people, and implementing the right collections strategy for specific accounts. If data about a consumer changes, like their location, contact information, or collectible assets, you need to know right away in order to update their profile and take the necessary next steps.
A public and private records database that continuously pulls and updates data from a variety sources, including multiple credit bureaus, unbanked sources, and alternative data sources will help ensure you’re getting the most up-to-date and accurate consumer data available.
You can perform a people search to gather phone numbers, emails, addresses, relatives, and associates for better skip tracing and right-party contact, as well as risk data, like criminal records and other debt records, that can help you identify higher risk accounts. You can also gather data on bankruptcy records and deceased records to quickly scrub uncollectible accounts and focus your energy on pursuing accounts that will bring in profits.
With access to the best consumer data, you’ll get clear insight into who your customers are and how to collect on them in the best way possible.
Ready to add a public and private records database to your collections toolbox? Get started with Tracers today.