1. All You Need To Know About Debt Recovery
Many times, it has been reported that a debtor has disappeared, without paying his debts. The
creditors may be left having retrieved a fraction of the amount owed. With advancement in
technology, various ways have been developed in order to track down debtor and enable
creditors to recover their debts.
Skip tracing is a method used to find a person who has vanished, so to speak. This is done by
collecting information about the missing person. The common clues when trying to finds a
missing person are found in telephone books, phone directories etc. These clues may not
always be successful, but they lead to more clues, which bring investigators closer to finding
the missing person. The information is analyzed and verified. The information is often used to
identify a third party that will lead to the subject of the search. Skip tracing data is critical to
debt. .
Integrated data scrubbing, scoring and Skip Tracing is a skip tracing solution that conducts
searches for updated information in the collector’s system. The level of data automation
eliminates the need for manual intervention.
Probing for up-to-date information is another strategy that results in delivering focused, current
and relevant information. The data comes from sources such s telephone companies,
government records, public records etc. this strategy uses these sources to produce the
individuals details such as links to any real property, links to relatives, associated phone
number etc.
Collection Agencies require access to accurate and reliable information to local individuals and
businesses. Access to up-to-date telephone company directory assistance and social security
databases can provide important information.
To start the process of Debt Recovery you have the option of three tools, that is, Letters Before
Action; Late Payment Demands; Statutory Demands; Letter with Draft Insolvency Petition.
Letter Before Action is used when the debt is straightforward and the debt is not in dispute.
Late payment Demands claims late payment and allows you to demand interest and
compensation. Statutory Demands are usually served on the debtor before a petition of
bankruptcy is presented. Letter with Draft Insolvency Petition requires a creditor to ensure that
no previous bankruptcy action has been issued against the debtor within the previous 18
months. Searches are undertaken at the courts. Insolvency proceedings are used only where
the creditor is absolutely sure that no defense will be raised. Where there is dispute to the
proceedings, the court may choose to dismiss the petition, and the creditor may have to pay
the debtor’s costs.
The best collection agency in the UK is The Thomas Higgins Partnership which collects
business to business debts. They boast fast, efficient, cost- effective and reliable solutions to
the needs of their clients.