Skip tracing in Australia: What You Need to Know

Skip tracing in Australia is an essential process for debt collection agencies. It involves locating debtors who have gone "missing" or are trying to evade payment.

Recovering debts and ensuring financial stability of the business, and consistent cash flow is crucial for businesses, although it can be a challenging and time-consuming task.

In Australia, skip tracing is regulated by various laws, including the Privacy Act 1988 and the Australian Privacy Principles.

These laws ensure that the personal information of debtors is handled appropriately and that skip tracing is conducted ethically and legally.

In this article, our professional Australian debt collectors will give you some insight into the world of skip tracing in relation to debt collection in Australia.

What is Skip Tracing?

You’re probably wondering what skip tracing actually is.

This information was more than likely given to you through the contract when you began your exchange with your debtor and includes their full name, address you last knew them to hold, date of birth, and any other information you have; the more knowledge, the better.

Fun fact, the name “skip tracer” originates from the saying “skipping town”, which is likely exactly what your debtor did to avoid the debts you are rightfully owed.

The process of skip tracing has significantly evolved over time, creating an overall more reliable and successful process that has a better likelihood of ending in debt recovery.

Skip tracing in Australia

When conducting skip tracing in Australia, debt collection agencies use various skip tracing tools and techniques to locate debtors.

These can include online databases, public records, and even social media.

It is imperative to acknowledge that debt collectors are bound by rigorous protocols and forbidden from participating in any illegal or unethical conduct. The adherence to these guidelines is crucial in the debt collection process.

One important aspect of skip tracing is the use of skip tracing software. Skip tracing programs aim to streamline the process by providing accurate and up-to-date information about debtors.

Skip Tracing in Australia and Debt Collection

Skip tracing is a process used by debt collectors to locate individuals who have defaulted on their payments or gone missing.

In Australia, skip tracing services are in high demand, and many companies offer skip trace search services to help track down debtors.

One of the key benefits of skip tracing is that it can help creditors recover money that they might otherwise have lost, by finding debtors and making them accountable.

Who Conducts Skip Tracing in Australia

Throughout Australia, skip tracing is a particularly important service due to the large number of people living in the area, and the large amount of debt.

Skip tracing services are offered by a range of companies, from small debt collection agencies to large multinational firms.

These companies use a variety of tools and techniques to locate debtors, including social media, public records, and advanced skip tracing software.

How Does Skip Tracing Work?

So, this all sounds great but how exactly does it work?

Well, the process starts with the collection of relevant information about your debtor.

This can take place via the information you have obtained in the past or by applying some research about the individual.

Those that work in skip tracing gather this information, verify it, and then utilise it to understand the movements and ultimately track the current location of your debtor so you can effectively reach them.

Once the relevant information has been gathered, the skip tracer can begin their search.

They do this by using the debtor’s information and placing it into search engines in public records related to housing records, criminal and court records, and marriage or divorce records. The employment of a private investigator may result in access to different records also such as credit and utility reports.

Although generally only in last-resort situations, skip tracers, field agents, or private investigators will also use surveillance strategies to locate your debtor.

Cultural Sensitivity to Skip Tracing in Australia

One important consideration when conducting skip tracing in Australia is cultural sensitivity.

In Australia, debt collectors must be aware of cultural differences and nuances that can impact their interactions with debtors in the multicultural society.

It is important to approach skip tracing with empathy and understanding, while still maintaining a professional and assertive attitude.

Skip tracing is a crucial process for debt collection agencies in Australia. It requires the use of various tools and techniques, as well as a deep understanding of the legal and ethical guidelines that govern skip tracing.

By using skip tracing software and approaching the process with cultural sensitivity, debt collectors can improve their chances of locating debtors and recovering debts.

The Legal Framework for Skip Tracing in Australia

Debt collectors must follow strict legal and ethical guidelines when conducting skip tracing.

The legal framework for skip tracing in Australia is governed by various laws, including the Privacy Act 1988 and the Australian Privacy Principles.

These laws ensure that debt collectors handle personal information appropriately and conduct skip tracing ethically and legally.

The Privacy Act 1988 regulates the handling of personal information by Australian entities, including debt collectors.

Debt collectors must protect the privacy of debtors and handle their personal information securely, only collecting necessary and up-to-date information.

The Australian Privacy Principles (APPs)

The handling of personal information by Australian entities is guided by the Australian Privacy Principles (APPs).

These principles outline the obligations of debt collectors when collecting, using, or disclosing personal information.

To ensure accuracy and relevancy, debt collectors must collect only necessary information for their functions.

The Code of Conduct for Debt Collectors

Ethical debt collection practices are outlined in the Code of Conduct for Debt Collectors, which includes guidelines on avoiding harassment and intimidation.

The Code of Conduct for Debt Collectors emphasises ethical debt collection practices, which prohibit harassment and intimidation.

In addition to the legal framework, debt collectors must also be aware of the potential risks associated with skip tracing.

Debt collectors must not engage in illegal or unethical behaviour, such as accessing personal information without authorisation.

Privacy and Skip Tracing in Australia

Debt collectors must follow a strict legal and ethical framework when conducting skip tracing in Australia.

Various laws and guidelines such as the Privacy Act 1988, the Australian Privacy Principles, and the Telecommunications Act 1997 provide guidance on personal information handling, while the Code of Conduct for Debt Collectors focuses on ethical debt collection practices.

At Advance Debt Collection, we ensure that our agents fully comply with these laws and guidelines, and that our debt collectors can conduct skip tracing in a legal and ethical manner, while still achieving their goals of recovering debts and ensuring the financial stability of businesses.

Public Records and Skip Tracing in Australia

One of the most valuable sources of information for skip tracing is public records.

Public records, such as court and property records, can provide valuable information for debt collectors, but they must ensure they access it lawfully and handle it responsibly.

In Australia, these records are kept by a number of different government agencies, such as:

1. Your state Land Titles Office; and/or
2. Australian Securities and Investments Commission; and/or
3. Australian Financial Security Authority.

These agencies make public records available to the public, either online or through a physical records office.

Using public records in combination with skip tracing techniques can be a powerful tool for debt collectors.

By accessing public records, debt collectors can obtain valuable information that may not be available through other sources. For example, a debtor may have changed their phone number or moved without notifying creditors, but this information may be available in public records.

Debt collectors must ensure that they access public records lawfully and only use obtained information for debt collection purposes.

Debt collectors must handle personal information securely and responsibly in accordance with the Privacy Act 1988.

Accessing public records carries potential risks such as obtaining outdated or inaccurate information, and potential legal liabilities.

Debt collectors must mitigate risks associated with accessing public records and ensure information is used ethically and legally.

Public records and skip tracing can be a powerful combination for debt collectors in Australia.

By accessing public records, debt collectors can obtain valuable information that may not be available through other sources.

To adhere to laws and guidelines, debt collectors must access public records legally and ethically.

By doing so, debt collectors can conduct skip tracing in an effective and responsible manner, while still achieving their goals of recovering debts and ensuring the financial stability of businesses.

Why Would I Need Skip Tracing?

So, you may be wondering why would I need to skip trace. Is this method necessary for the matter I’m currently engaged in?

Well, there are various reasons why skip tracing may work for you. Of course, if you simply cannot locate an individual who owes you a debt, skips tracing, may be for you.

You may also want to consider if you are willing to serve someone or if your client will not answer your calls, emails, letters, or official documents requesting immediate payment.

A debtor consistently late for their debt payments or unable to afford to continue paying their debts (insolvent) may become desperate and skip town.

If you are suspicious or completely aware that this has occurred, you may want to reach out to a skip tracer.

7 Australian Skip Tracing Tips and Tricks

Skip tracing requires specialised knowledge and skills that not many possess.

Our debt collectors reveal some of the most useful tips and tricks about skip tracing that not a lot of people know about.

Tip 1 - Use Social Media

Social media platforms like Facebook, Twitter, and LinkedIn are excellent resources for skip tracing.

Social media can be used by debt collectors to gather information such as location, employment status, and contact details of debtors.

Tip 2 - Utilise Public Records

Public records are a valuable source of information for skip tracing.

Public records such as property, court, and motor vehicle records provide debt collectors with information such as address, phone number, and employment history.

Tip 3 - Talk to Friends and Family

Debt collectors can also talk to the debtor's friends and family members to gather information about their whereabouts.

Friends and family members may have information that can help locate the debtor or provide clues about their current location.

Tip 4 - Hire a Professional Skip Tracing Service

Skip tracing services are specialised firms that help debt collectors locate debtors (like Advance Debt Collection).

Debt collection firms use (and pay for) advanced technology and databases to locate debtors and provide accurate and up-to-date information.

Tip 5 - Use Skip Tracing Software

Skip tracing software is another useful tool for debt collectors.

Debt collection software facilitates debtor searches using various criteria like name, phone number, and address.

The software can also help debt collectors organise and manage their skip tracing efforts.

Tip 6 - Verify Information

When gathering information about debtors, debt collectors should verify the accuracy of the information they obtain.

Debt collection firms utilise advanced technology and databases to track down debtors and provide accurate information.

Tip 7 - Stay within Legal Limits

Debt collectors must adhere to legal limits when skip tracing debtors.

They should avoid using deceptive or illegal methods to obtain information about debtors.

Debt collectors should also be aware of the laws that govern skip tracing in their state or country.

5 Reasons Why You May Need Skip Tracing Services

An Advance Debt Collection skip trace utilises a great collection of tools that can help you with a variety of matters you may come across in your life. It is, however, not a very well-known service to many, so a lot of people may miss out on its benefits.

Skip tracing is necessary when someone has left the area and/or changed their personal details to flee from financial or legal responsibilities.

There is generally a victim or someone who will suffer from this happening, so skip tracing is here to put a stop to this and ensure people face the consequences of their actions in a legal manner.

This article will discuss 5 reasons you may need skip tracing services, what it is, and how it can help you to fulfil these tasks.

What is Skip Tracing?

Before we discuss how skip tracing services can help you, it is important to have some background knowledge about the service. So, what is skip tracing?

Skip tracing is the process of locating an individual that has rather left their area to avoid complications, such as debts or a legal matter, or has simply moved somewhere else or changed other information about themselves for personal reasons.

The term comes from the term “skipping town”, as if someone has done so and you need to get in contact with them, they will be “traced”.

A skip trace is conducted by utilising several databases and other services that allow skip-tracing services to gain important information about the individual.

This information is then used to find the person you are looking for.

Databases include public records, criminal records, and other sources, some of which are only accessible to professionals.

Skip tracing can occasionally be confused with stalking. It is important to remember that the two are very different and stalking is incredibly illegal! Skip tracing is locating someone using legal sources and methods for a legitimate reason.

This reason may be to collect debts or to find a missing person. Stalking is unwanted and unwarranted following or surveillance.

How Can Skip Tracing Services Help You?

Now that you are aware of what skip tracing is, you can begin to understand how it can work to help you.

The following 5 reasons are the most common causes that someone may need skip tracing and the process can help you if you are involved in a similar matter.

1. Collecting Debt
2. Locating Loved Ones
3. Locating Buyers or Sellers in Real Estate
4. Finding Someone Involved in a Legal Matter
5. Background Checks

We will explain these in more detail below.

Skip Tracing Services - Collecting Debt

The most common reason that some will find it necessary to engage a skip tracing is to locate those that have fled to avoid debts they owe.

Debts can become overwhelming, as you are likely aware. Whether you are not financially stable or have other monetary responsibilities, you may find it difficult to be able to consistently pay off debts.

It is, however, a debtor's personal responsibility to pay these debts and have a discussion with you about other options or negotiations if they are not able to pay.

When an individual skips town to escape from debt-related responsibilities, creditors may engage a skip tracing service in order to effectively locate this person so they can be paid what they are owed. 

Skip Tracing Services - Locating Loved Ones

Another reason many people may engage in a skip tracing service is to locate a missing family member or friend.

Have you ever had a loved one skip town for any reason, or change their details such as their name, address, phone number, or workplace for personal reasons?

If so, you may become extremely distressed due to your inability to contact them.

If this is the case, you can use a skip tracing service to locate them or come in contact with this person again for whatever reason you deem appropriate and is legally permitted of course.

Locating Buyers or Sellers in Real Estate

Another reason someone may find it necessary to use a skip tracing service is to locate a buyer or seller for real estate purposes.

This reason is a little different from others on the list as it is not necessarily to recover the target of the skip trace.

Real estate agents or businesses can use skip tracing to grow their business and sell properties more efficiently.

Furthermore, the agent can focus their time and efforts on those that are actively looking to buy or sell properties.

Finding Someone Involved in a Legal Matter

Someone may also use a skip tracing service to find someone involved in a legal matter.

If you are involved in a legal matter and are unable to find a key individual in your case, you may use a skip tracer to do so.

This may include the defendant in the case or a key witness to help support your matter.

In the case of a witness, they may skip town to avoid the potential consequences that may arise from their statement. Lawyers or police officers may use skip tracing for this reason.

Skip Tracing Services - Background Checks

Another reason that someone may use skip tracing is to run a background check on a potential employee or client for their business.

If you are considering hiring someone or engaging a new client, it is generally recommended you run an extensive background check to ensure you are not going to find trouble with this person.

If you wish to check criminal records or the financial history of a new person in your business, you can do this through skip tracing.

Methods of Skip Tracing

There are various methods of skip tracing which may be useful to you in different ways depending on the nature of your matter. These include:

1. Public records
2. Background check
3. Criminal records
4. Credit report
5. Utility records
6. Employment records

What is Skip Tracing - Public Records

One method of skip tracing and generally the most basic and popular is searching through public records to locate your debtor.

As mentioned prior, these public records may include housing records, criminal records, court records, and employment records.

What is Skip Tracing - Background Check

A background check is another helpful method for not only skip tracing but finding out relevant information about your debtor.

A background check can help to uncover information regarding the client’s credit score, criminal record, address, and more.

Skip Trace Search - Criminal Records

This may be a long shot in skip tracing regarding debt collection, but your client may have a criminal history that can assist your search or even a recent crime recorded in a location they may be in at the moment.

What is Skip Tracing - Credit Report

A credit report may also be effective in locating your client again depending on the nature of your matter.

If the debt owed happens to be related to an establishment such as a bank or a hospital, a credit report may be useful. It can also assist in finding a debtor’s current place of living or their workplace.

Searching any Utility Records

A utility report is generally effective in locating your debtor’s current address.

Searching Employment Records

If you are, again, attempting to locate your client's current address, an employment record may be appropriate.

This method is especially effective if you suspect your debtor has legally changed their name or is simply referring to themselves with a different name than the one that appears on the record.

Something to Remember

Although skip tracing is perfectly legal, some can engage in activities while skip tracing that are not legal.

As long as you ensure all the information you are using is from legal sources and in a legal manner, you will not face consequences with the law.

So, what can I not do? For starters, you cannot illegally access the private records of the person you wish to trace.

You also cannot use any form of violence to get the information needed out of anyone.

Searching through the private records of someone without consent and using bribery to obtain said information are also examples of illegal skip-tracing methods.

For this reason, it may be wise to engage a skip tracer instead of going about it yourself.

These professionals will generally have a much better knowledge of the law and be able to find the target of the skip trace with better success.

Skip Tracing FAQ

We get asked a lot of questions about our skip tracing services.

We thought it would be a great idea to put all of those questions in a skip tracing FAQ article.

What is Skip Tracing?

Skip tracing is a process that debt collectors use to locate a person (usually a creditor) who is missing, does not want to be found, or has "skipped out" on a financial obligation, such as a loan, unpaid invoices, or court-ordered judgment.

What is skip tracing used for?

Skip tracing is often used for a variety of purposes related to debt collection, including (inter alia):

1. Debt collection - Skip tracing is often used by debt collectors to locate individuals who have defaulted on loans or credit card payments and are avoiding attempts to contact them.
2. Legal proceedings - Skip searching  may be used to locate individuals who are involved in legal proceedings and need to be served with legal documents or subpoenas.
3. Asset recovery - Skip tracing may be used by banks, creditors, and other organizations to locate assets that are owned by individuals who have defaulted on their debts or are involved in legal proceedings.
4. Background checks - Skip searching  may be used to gather information about an individual's background and history for employment, housing, or other purposes.

Why is it called skip tracing?

Skip tracing got its name from locating a person (usually a debtor) who has "skipped out" on their obligations, such as a debt, repayment of a loan, answering to a Court judgment, or a missed court appearance.

The phrase "skip" refers to the debtor who is avoiding being found to repay the debt or to attend in Court, while the phrase "tracing" refers to the process of attempting to locate (or trace) the debtor.

What data does a skip tracer access?

A skip tracer may access a wide range of different data sources to locate a debtor, including:

1. Government databases - Skip tracers may contact Federal and State government, such as the Department of Transport and Main Roads to find contact information (such as licenses).
2. Online databases - Skip tracers may access online databases, such as those maintained by real property and rental agencies and other public records databases (such as rates).
3. Phone records - Skip tracers may access the debtor’s phone records to gather information about an individual's phone numbers and possible location.
4. Public records - Public records, such as online court records which may provide information about an individual's employment, location, contact and other details.
5. Social media profiles - Skip tracers may search a debtor’s social media profiles, such as those on LinkedIn, Twitter, Instagram, and Facebook, to gather information about an individual's employment, location, contact and other details.
6. Other sources - Skip tracers may use a variety of other sources, such as utility records, employment records, and other publicly available information, to gather information about an individual's location and other details.

How do you know if skip tracing is necessary?

There are several situations in which skip tracing may be necessary:

1. Debt collection - Skip searching may be necessary if an individual has defaulted on a debt and is avoiding attempts to contact them or make payment.
2. Law enforcement - Skip searching  may be necessary if an individual is wanted for a crime or is considered a fugitive.
3. Missing persons cases - Skip tracing may be necessary if an individual has gone missing and their whereabouts are unknown.
4. Legal proceedings - Skip tracing may be necessary if an individual needs to be served with legal documents or subpoenas as part of a legal proceeding.
5. Asset recovery - Skip searching  may be necessary if an individual has defaulted on their debts or is involved in legal proceedings and their assets need to be located.
6. Background checks - Skip tracing may be necessary if an employer or other organization needs to gather information about an individual's background and history for employment, housing, or other purposes.
7. Locating heirs or beneficiaries - Skip tracing may be necessary if an individual is entitled to inherit assets or receive benefits from estates or trusts, but their whereabouts are unknown.

In general, skip tracing may be necessary when an individual is missing, elusive, or avoiding contact, and it is necessary to locate them for financial, legal, or other purposes.

How can I skip trace someone for free?

There are a number of different ways you can skip trace someone for free, including (inter alia):

1. Government agencies - You can try contacting Federal and State government to see if they have any information about an individual's location, contact, or other details.
2. Social media - You can search social media profiles to gather information about an individual's employment, location, contact, and other personal details.
3. Online search tools - There are a number of online people search tools that allow you to search for individuals by name, address, phone number, or other personal details.
4. Public records - You can search public records, such as property records, court records, and council rates records, to gather information about an individual's personal details.

Skip tracing can be a time-consuming and resource-intensive process, and it may be difficult to locate someone for free.

In some cases, it may be more effective to use professional skip tracing services.

How long does it take to skip trace?

How long it takes to do a skip trace on an individual can vary greatly depending on a number of factors, including:

1. the amount of information available about the individual.
2. the complexity of the case; and
3. the resources and methods used to locate them.

Skip tracing may be completed in a matter of hours or days, while in other cases it may take weeks or months to locate an individual who is actively trying not to be found.

There are a number of variables that can impact the speed of skip tracing, such as:

1. The debtor’s access to resources.
2. the debtor’s level of mobility; and
3. The debtor’s willingness to be found.

Skip tracing is generally more likely to be successful and completed more quickly when there is more information available about the debtor.

How do you skip trace a person?

Skip tracing a person involves using a number of different methods and resources to obtain information about the debtor’s whereabouts and/or contact information.

The first step in skip tracing is to gather as much information about the debtor as possible. This may include their full name, address, phone number, date of birth, social security number, and any other relevant details.

The second step is to conduct the searches, such as:

1. Government databases.
2. Online databases.
3. Phone records.
4. Social media profiles.
5. Public records; and
6. Other sources.

We strongly advise that you use professional skip tracing services.

How do you know if skip tracing is necessary?

There are several situations in which missing person tracing may be necessary:

1. Asset recovery & identification.
2. Background checks for new clients.
3. Debt collection.
4. Legal proceedings.
5. Missing persons cases; and
6. Locating heirs or beneficiaries.

In general, skip tracing may be necessary when an individual is missing, elusive, or avoiding contact, and it is necessary to locate them for financial, legal, or other purposes.

Who uses skip-tracing tactics?

Skip tracing tactics are often used by a variety of organizations and individuals for a variety of purposes, including:

1. Debt collectors - Debt collectors may use skip-tracing tactics to locate individuals who have defaulted on loans or credit card payments and are avoiding attempts to contact them.
2. Private investigators - Private investigators may use skip-tracing tactics to locate individuals for their clients, who may be seeking to locate missing persons, locate assets, or gather information for legal proceedings.
3. Creditors - Creditors, such as banks and other financial institutions, may use skip-tracing tactics to locate individuals who have defaulted on their debts or are involved in legal proceedings.
4. Employers - Employers may use skip-tracing tactics to gather information about an individual's background and history for employment purposes.
5. Landlords - Landlords may use skip-tracing tactics to gather information about an individual's background and history for housing purposes.

In general, skip-tracing tactics may be used by any organization or individual who needs to locate an individual for financial, legal, or other purposes.

Is skip tracing legal in Australia?

Skip tracing is legal in Australia, but there are some limitations and restrictions on how it can be done.

The Privacy Act 1988 (Cth) regulates the collection, disclosure, and use of personal information.

There are other laws and regulations that may apply to missing person tracing depending on the specific jurisdiction and the circumstances in which the skip tracing is being conducted.

In general, a skip search is legal in Australia as long as it is done in a legal and ethical manner and does not involve violating any laws or regulations.

How accurate is a skip trace?

The accuracy of a skip trace can vary depending on a number of factors, including (but not limited to):

1. the amount of information available about the debtor.
2. the complexity of your particular case; and
3. the resources and methods used to locate them.

Skip tracing is generally more likely to be accurate when there is more information available about the debtor.

However, it is important to note that skip searching is not an exact science, and it is not always possible to locate a debtor or to obtain accurate and up-to-date contact information or information about their whereabouts.

Overall, the accuracy of a skip trace can vary and is not guaranteed.

How do I hire a skip tracer?

There are a number of things you can do before you hire a skip tracer including (inter alia):

1. Determining your needs - Before you start looking, it is important for you to determine your specific needs and the reasons for needing a a skip search company.
2. Credentials and experience – You should consider checking the experience and credentials of the missing person tracing company. Look for skip tracers who have experience and licensed.
3. Research - Do an online search for skip tracers in your area and look at the reviews on their online presence.
4. Contract - It is important to ask to be provided with a written contract outlining the terms of the skip tracer's services.

By following these steps, you can hire a skip searching company that is experienced, qualified and can help you achieve your specific goals.

How much does it cost to skip trace?

The cost of skip tracing can vary greatly depending on a number of factors, including:

1. the amount of information available about the debtor.
2. the complexity of your specific skip trace and your debtor; and
3. the resources and methods used to locate your debtor.

Some missing person tracing companies charge an hourly rate for their services, while others may charge a fixed fee or a percentage of the debt being collected.  At Advance Debt Collection we charge a single flat fee + the cost of the searches.

It is important to keep in mind that the cost of a skip search may be significantly less than the cost of not locating your debtor, especially in cases where the individual owes a significant debt or is involved in legal proceedings.

In these cases, the cost of skip tracing may be justified as a necessary expense in order to resolve the issue and protect your interests.

Skip Tracing in Australia

In conclusion, skip tracing in Australia is a critical process in debt collection, and debt collectors can benefit from using the tips and tricks mentioned above.

By using social media, public records, skip tracing services, and software, debt collectors can locate debtors more efficiently and effectively.

However, it's essential to verify the accuracy of the information obtained and stay within legal limits when skip tracing debtors.