Bounty hunters for debtors: 4 things your firm should look for in a skip tracer

Having trouble recovering past-due amounts from a troublesome customer (or customers)? Before you get Collections to call in the aid of an attorney, try this tactic.

The help of a commercial skip tracer can really come in handy — especially if you want to bundle together a few of your smaller problem payers.

Key: Before enlisting the help of a skip tracer, it’s vital to be sure your firm will recoup more than you invest.

Here are a few steps to help you find the right skip tracer:

1. Make sure the company is legit. Reputable skip tracers always provide a street address (instead of just P.O. box or Web site).
2. Secure a copy of the provider’s business license. If a skip tracer won’t provide a copy of its business license when asked, then go with someone else.
3. Check the skip tracer’s access to private databases of debtors. A company that relies on Internet sources that are free — or available to anyone with credit-card access — isn’t really giving your firm any advantages.
4. Get a fee and payment schedule in print. In addition to the standard wording, this agreement should require the skip tracer to garner your approval for any actions that go beyond the costs your firm projected or budgeted.