The Confusion
Skip tracing is one of the most misunderstood aspects of debt recovery. As someone who has worked in this field for about 20 years, I’ve seen firsthand how often people confuse it with private investigation, leading to unnecessary scrutiny and legal misinterpretations. This article sheds light on what this work tracing truly entails, how it differs from private investigation, and why it is an essential, lawful profession within the collections industry.
What Is Skip Tracing?
Skip tracing is a specialized process of locating individuals or assets for debt recovery. It involves using public records, specialized data bases, analyzing data, and leveraging other tools to trace debtors. Unlike private investigators, I do not conduct surveillance or gather evidence for legal cases. My focus is entirely on actionable results that help individuals & businesses recover what is owed.
Skip tracing is not only a crucial service but also a highly specialized skill. Over the years, I’ve trained hundreds of collectors, teaching them both modern techniques and foundational methods for locating individuals efficiently and legally. My work has always adhered to state and federal laws, including those governing permissible purpose for accessing debtor information. My office and personal background has been fully investigated to make sure that I’m in compliance with my investigative data vendors.
How Skip Tracing Differs From Private Investigation
A common misconception is that skip tracing overlaps with private investigation. This couldn’t be further from the truth. Private investigators handle a broad range of activities, such as surveillance, solving crimes, and gathering evidence for litigation. Skip tracers, on the other hand, work exclusively in the collections industry.
Take New Hampshire Statute 106-F, for example. This law defines private investigation as assisting in “anticipation of civil litigation” or locating “lost, concealed, or stolen property.” My work as a skip tracer doesn’t fall under these categories. Instead, it focuses solely on locating individuals and assets for financial recovery.
The distinction is critical because skip tracing is a lawful activity that operates under its own set of rules. It’s part of the collections industry, not the realm of private investigation.
Division of Banks
In New Hampshire, the Banking Department (commonly referred to as DOB or Division of Banks) plays a pivotal role in regulating the activities of collection agencies. While New Hampshire doesn’t have collection agency licensing, the department ensures compliance with federal laws like the Fair Debt Collection Practices Act (FDCPA). This oversight is similar to the way state police regulate private investigators, emphasizing accountability and compliance within each respective profession. This is the regulatory board that New Hampshire collection agencies answer to.
Addressing Misconceptions
The confusion about skip tracing often stems from terminology. Words like “investigation” can cause people unfamiliar with the collections industry to assume skip tracers are private investigators. This misunderstanding has led to unwarranted scrutiny, as I’ve experienced in my own career.
The truth is, skip tracing is a standard practice used by collection agencies across the country. Many of these agencies employ skip tracing techniques similar to mine, but I’ve chosen to make it a focal point with my agency. This focus allows me to stay ahead of industry trends and provide clients with the most effective recovery solutions possible.
My Experience in the Collections Industry
I started my career in collections in 2005, working closely with attorneys and specializing in litigation-based consumer collections. Over time, I expanded my expertise to include management and training, and have trained other collectors in advanced techniques, and even advising private investigators on aspects of their work, mainly through my Udemy courses.
Since January 2020, I’ve run my agency, PIF Solutions LLC, in New Hampshire, where we focus on consumer and commercial debt collection, recovery-based skip tracing and other practices. By leveraging tools like AI, public records systems, and FOIA requests, I’ve built a reputation for locating difficult to locate individuals and assets while maintaining full compliance with the law.
Why Understanding Skip Tracing Matters
Clarifying the role of skip tracing is essential for avoiding regulatory misunderstandings. As a skip tracer, I operate within a well-defined niche that serves creditors and collection agencies by locating individuals and assets. My work complements, but never overlaps with, private investigation.
By understanding these distinctions, regulators, private investigators, and the public can better appreciate skip tracing as a lawful and indispensable profession.
Conclusion
Skip tracing is a critical part of debt recovery, and it deserves recognition as a distinct and lawful profession. With over two decades of experience, I’ve built my career on providing compliant, effective skip tracing services that help recover debts.
My goal is to clear up misconceptions about skip tracing and demonstrate its value in the collections industry. It’s not private investigation—it’s a unique profession with its own rules, methods, and importance.
Thank you for reading! If you are interesting in learning more, check out my investigative courses and my YouTube channel.
Eric Neal
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