Catch me if you can! Skip Tracing Strategies Using 21 st Century Tools John G. Schwarm, D.B.A. General Revenue Corporation November 7, 2011

Session Description We live in a world where virtually all our students are in constant connection with their respective social networks. However, they are largely disconnected from their financial life and even harder to reach when you are looking for a payment. In this session, you will listen to a discussion of new strategies, tips, and tricks from the professionals on how they track down these missing persons.

Session Agenda 1.Who, what, & why of skips 2.Communication & 21 st Century tools 3.Collection strategies for high performance 4.Social networks & skip trace web sites 5.Credit bureaus & social security numbers 6.Government regulations & rules of engagement. 7.Questions

Skips: definition and goals. Account holders that do not have current contact information with the creditor. – Strategic search involving numerous leads Goal: Locating and validating – Contacting 1 st and 2 nd degree relatives – Validate residence and place of employment – Obtain personal information to enable collection – Once contacted, good chance of recovery

Why do people skip? Procrastination Fear / Panic Path of least resistance Confusion Dont know who to talk to on campus Problem too deep to find a way out Learned behavior from parents / peers

How can you disappear? Dont use credit – cash only Dont own property – no bank accounts Couch surf / roommate responsible Spouse responsible for everything Parents hiding adult children Straw purchase (Parents buying car for child) Living in shelter / foreign assignment

Its All Greek To Me… Ethos: An appeal based on the perceived character of the sender of the message. Logos: An appeal based on the logic of the argument Pathos: An appeal based on the use of emotions

Competencies of a skip tracer Intelligence Common Sense Patience Self-control Friendly Personality Persistence Detail-oriented Assertiveness Persuasiveness Helpfulness Creativity Competitiveness Goal Oriented

What are 21 st Century Tools? 21 st Century Tools: Computer/ data bases / internet searches / next day air Telephone / Mobile Social Networking Sites Job verification letters Credit bureau reports

Typical Account Scrub – Placement process All accounts receive Electronic Scrubs regardless of balance - NCOA, NSLDS, Clearing House, Death Master, Incarceration, Disability and Banko upon placement Upon placement, all accounts are sent to Trans Union, Experian, Equifax for recovery score to group accounts and devise appropriate work strategies

High Performance Collection Agency Methodology Accounts Distributed Skip Trace or Contact to Federal Unit Skip Trace Division and Front Line Collection Division Management Review Weekly Inventory Spins Calling Strategies Telephone contact is attempted via Time Management and dialer campaigns launched Skip-tracing Skip-trace waterfall initiated coupled with manual skip- tracing

Skip Trace Waterfall Tools Accurint A LexisNexis brand skip-tracing tool designed to locate more debtors, increase amounts collected, increase efficiency and shorten the collection cycle Acxiom Insight Collect Interfaces with FACS to effect a waterfall scrub and locate process Banko Processing to determine if a debtor has filed bankruptcy CBC Innovis Provides unique address and telephone numbers in order to maximize ability to contact debtors Equifax Provides CBR reports and other location tools Experian Provides CBR reports and other location tools DeathMaster Verification of deceased debtors by SSN, including date and place of death Electronic Directory Assistance Integrated into FACS to find telephone numbers for homes and businesses Teletrack Credit bureau for sub-prime lenders not reporting to the major credit bureaus TALX The Work Number Automated employment and income verifications TransUnion A debtor locating tool with the following features: Individual Monitoring SSN Search ID Search Contact Locator Comprehensive Locator Report Verifacts A tool used to located a debtors telephone number and place of employment

Social Networks & Skip Tracing Use social network to find subject, do not use this medium to communicate or collect. Business officers rarely use any social media to locate debtors – Use alternative products such as Trans Union, Equifax, and Experian – Address, employment, and Social Security Number searches through credit bureaus

Top 15 Popular Social Network Web Sites 1.Facebook 2.Twitter 3.Linked In 4.My Space 5.Ning 6.The Google 7.Tagged 8.Orkut 9.Hi My Yearbook 11. Meet Up 12. Badoo 13. BeBo 14. My Life 15. Friendster

Social Networking Venn Diagram

Free Skip Trace Websites blackbookonline.info zabasearch.com searchbug.com Timeanddate.com Docusearch.com Argali.com KnowX.com switchboard.com facebook.com pipl.com spokeo.com yellowpages.com Switchboard.com

Free Skip Trace Web sites (Continued) google.com whitepages.com people.yahoo.com pipl.com skipease.com addresses.com whowhere.com anywho.com 411.com blackbookonline.info yellowbook.com manta.com hoovers.com

Fee-Based Skiptrace Services Accurint LexisNexis Acxiom Insight Collect Choice Point Experian Fletch Data Interactive Data Master Files RealEDA SkipTraceInfo U.S. TRACERS Veri Facts

More Research Tips Charged Internet Search: If other attempts have failed to yield information, use a fee-based search engine if one is available. Tax Assessor: Determine if the borrower owns property. Consider calling the landlord for the borrower and leave a message if necessary

Credit Bureaus Credit Bureau Report: If other attempts have failed, order a CBR for the borrower. The CBR does not benefit a collector unless the information is used. Credit Bureaus: EQUIFAX TRANSUNION EXPERIAN

What does your SSN reveal? Social Security "Area Code" Number Chart The first three digits of a Social Security Number correspond to locations as follows: SSN State or Territory SSN State or Territory New Hampshire , Texas Maine Minnesota Vermont Iowa Massachusetts Missouri Rhode Island North Dakota Connecticut South Dakota New York Nebraska New Jersey Kansas Pennsylvania Montana Maryland Idaho Delaware 520 Wyoming , Virginia , Colorado

What does your SSN reveal? SSN State or Territory SSN State or Territory West Virginia 525, 585, New Mexico 232, , North Carolina , , Arizona , South Carolina , Utah , Georgia 530, 680 Nevada , , Florida Washington Ohio Oregon Indiana , California Illinois 574 Alaska Michigan , Hawaii Wisconsin District of Columbia Kentucky 580 Virgin Islands , Tennessee , Puerto Rico Alabama 586 Guam , , Mississippi 586 American Samoa , Arkansas 586 Philippine Islands , Louisiana Railroad Board* Oklahoma Enumeration at Entry

Im from the government and I am here to help Fair Debt Collection Practices Act(FDCPA), 15 U.S.C. §§ p. Telephone Consumer Protetion Act (TCPA) 47 U.S.C. § 227 Consumer Protection Bureau (Dodd / Frank Wall Street Reform and Protection Act) Fair Credit Reporting Act (FCRA)

Just call me…Joe… Collection agencies can call anyone in an attempt to secure the debtors location. However they must: – Follow FDCPA – Disclose who they are if asked – Just confirming location information on debtor – Never disclose the information to a third party.

Can I call you during dinner? Generally, the agencies can not call you more than once unless that person agrees to allow additional contact OR the debt collector believes the response was erroneous or incomplete and that the person now has the correct information. Dont contact the consumer / debtor if they are represented by an attorney known to the debt collector. The collector may not make any additional contacts.

Call me anytime… If I have your authorization in writing If we have done business together If there is a legitimate business need To process credit transactions To discuss any issues with new purchaser or servicer of existing accounts

Questions John G. Schwarm, M.B.A. / D.B.A. General Revenue Corporation Office: (847) Mobile: (630)