What is Skip Tracing and How Can It Help Your Multifinance Company?


In general, skip tracing is the process of finding someone’s location. This method is used to find individuals who evade creditors as well as law enforcement. Various methods are used to carry out this tracing, the most common of which is to contact acquaintances of the individual such as family, friends, relatives, and others. Furthermore, it can also be done by utilizing technology and the internet, such as viewing personal data information or posts uploaded through that person’s social media. Although it is used in various types of fields such as health, journalism, and banking, this tracing can have different meanings for each field.

In the financial sector, especially banking and multi-finance companies, this tracing is a debt collection tactic that is commonly used by them, namely by tracking and checking the traces of defaulters. The most important part of this process is the information from the arrears account holders. This process is done by checking and tracing information such as loan application, debtor’s history with the company, their credit score, and personal information such as phone number and address. In addition, social media such as Instagram, Facebook, LinkedIn, and the like can also provide more information, such as data on the debtor’s friends and relatives.

Understanding the Process of Skip Tracing

The various tracing methods differ slightly in the tracing process used to obtain the contact’s information, but generally all methods have the same flow of practice. Some use certain specific sources, while others only check public information. If you use the skip trace application personally, then you should understand how it works. You should also know when to skip trace, and when to use other methods that may be more effective.

This tracing is usually done in a series of steps, namely:

1. The first step is to verify the information provided by the client and correct any incorrect information. This step also helps trackers familiarize themselves with the subject.

2. Next is to gather as much information as possible about the subject, using public sources such as:

  • Credit report
  • Public records database
  • Loan application
  • Background check
  • Job application
  • Courthouse records
  • Utility bill

3. If there are no resources as above that can provide information, then skip tracing can be done by contacting current or previous acquaintances of the subject, such as neighbors, friends, relatives, and co-workers via social media or meeting in person.

Currently, online loans as a service are increasingly popular in the society. Online loans are the provision of financial services that are used for lending and borrowing money through an electronic system using the internet network. In the process, prospective debtors are asked to provide information such as name, address, cellphone number, ID card, and others as a condition for making a loan.

If the debtor is in arrears in payment or is absent, the borrower will contact the debtor through this information. If the debtor breaks contact, the creditor can do skip tracing. However, you must be careful of illegal loans that have not been registered with the OJK’s legal entity, because they can terrorize and interfere with your personal life if you don’t make the payments personally and it is even possible that your personal data will be misused by them.




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