An Ultimate Guide to Debtor Tracing in the UK
Introduction
What is debtor Tracing
Debtor tracing is the process of locating an individual or business that owes money to another party, a debtor tracing service will provide the debtors current address and other relevant contact information such as telephone numbers or email addresses. Debtor Tracing helps to locate individuals who owe you money and enable debt recovery proceedings (litigation) or enforcement to commence. There are various reasons you may need to locate a debtor with a debtor tracing service but the most common is not having a forwarding (current) address from their last known address.
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Millions of pounds worth of debt are written off every year because debtors move address or location without leaving a forwarding address. Without the assistance of a professional debtor tracing service, the debtor becomes untraceable and debt collection action cannot proceed because of a lack of a current address. The key to enabling debt recovery action or litigation and enforcement in these circumstances is to enlist the services of a debtor tracing agency such as DebtTrace.
A debtor trace can be completed by using various data sources where the current address of the individual or business debtor is available. The recommended process by the Credit Services Association in the UK can be found on their Tracing Industry Factsheet
Businesses or Individuals will have a need to locate and trace people that owe them money and will use the following sources to trace their debtors
Existing client Information
Credit Agency Information
Publicly Available Information
Tracing Agents
When a search is required the business or individual conducting the search will require an information base to locate the correct person and this normally consists of the following data points
Full Name
Last known Address
Date of Birth
When the search is conducted with these three data points, as a starting base, and all three are verified as correct from previous engagement or verification of those data points. The resulting debtor trace will be accurate in 99% of cases in producing the correct current address for the debtor. This is because with Credit Agency searches as an example the subject can be viewed as a name match at the old address and the date of birth confirms it is the correct name match at the old property. The credit agency will then link this individual to the current property address via recent credit activity at the new address and other supporting data such as BT landline or Utility data use.
In the UK, there are an excess of 20 million traces conducted on a annual basis.
Debtor tracing searches through UK Credit Reference Agencies such as Equifax, Experian and CallCredit are the most common debtor tracing tools used by debt tracing agencies. These searches are then verified with separate data searches from various sources to verify the provided address data. When a tracing agency layers multiple separate data sources for the current address over the Credit Agency data the more reliable a provided address becomes.
The general accepted guidance is that Credit Agency Data should always be backed with a separate source of current address data to provide a current address, in most circumstances this supporting data should be from multiple sources. But importantly any provided address should then be contacted with a soft approach to avoid and minimise mis-tracing (Mis-tracing is providing the incorrect party such as a name match or error from a Credit Agency result)
An example of this soft contact approach would be to then use a soft contact to verify the supplied data with one of the following
A soft letter to verify details *
Soft telephone contact to verify the details *
Field visits
* An introductory (or ‘soft’) letter / telephone call is a form of correspondence which contains no personal details other than the name (and/or previous address) of the trace subject.
An important point to remember, is that a debtor trace is only as good as the data used and interrogated, the breadth of the data universe is crucial and that is why DebtTrace believe this is where we excel as a specialist debtor tracing service.
How a Credit agency works to obtain your current address
The following information from the Credit Services Association explains the process well
“ Information is supplied to the Credit Reference Agencies by creditors (e.g. banks, credit card companies). When somebody applies for credit, the information that they provide to the creditor is then reported to the Credit Reference Agencies and appears on the applicant’s credit report. Responsibility for the accuracy of this information lies with the creditors reporting the information”
Part 1 - An ultimate guide to debtor tracing in the UK
When you consider that by the end of May 2022, people in the UK owed nearly £1800 billion in personal debt it’s no shock to learn that more debtors are leaving their bills unpaid more than ever before. The impact of unpaid debt is devastating to companies and Creditors across the UK, leaving many business owners and Creditors having to close their services as they cannot afford to continue. If you are struggling to locate and trace your debtors then we have the key information you need to use before your business begins to suffer.
At DebtTrace® our ultimate guide has been designed to inform you about all the different types of debtor tracing you can use as well as learning about how and when they should be implemented. In addition, we have also shared a lot of useful information about the process of debt tracing and what you can expect along the way.
If you are ready to find the right solution to find your absconded debtors then grab a cuppa and read our guide!
Key Facts About Debt in the UK
Debt is a big part of UK life, with many people borrowing more each month to cover the increases in the cost of living as well as using debt to cover purchases, holidays and more. With so much money being lent to debtors, we wanted to share some of the most interesting facts we’ve learned about debt in the UK here at DebtTrace®
· In quarter two of 2021, banks wrote off around £4 million of debt every single day
· Just under 10% of household debt is financial, with the rest being debt for property
· By 2025, the UK household debt is expected to rise to £2354 billion
· Credit cards are the most commonly used form of unsecured debt.
· In the UK, the average debt per adult is around 108% of their earnings
Understanding Debtor Tracing
If you are owed money by an individual or a company then these are your debtors and typically they will make a number of repayments until their debt is covered, allowing you to close their account. However, sometimes people or companies fail to make their repayments, leaving you out of pocket and unable to move forward.
If this ever happens to you, you will need to try and locate the individual or company that owes you money so that you can proceed to collect your debt or escalate it through the UK court system. However, finding debtors can be incredibly difficult and result in a long, drawn-out process that is expensive and frustrating.
The good news is that there are a number of different debtor tracing solutions that you can try, with each one designed to help a specific debtor issue.
We’ll share these solutions later on so that you know how to proceed.
Why Debtor Tracing is Essential
Debtor tracing is not just about finding debtors that have deliberately made off without paying their bills. It is also a process that can be used to find debtors that may not realise they still owe money or when a debtor has died, and you need to locate their next of kin to inform them of the debt that is owed for deduction from any remaining Estate during probate.
It’s not uncommon for debtors to be shocked when they are contacted and agree to repay the debt without delay – however, this is more common when it comes to getting overdue invoices collected or when there are just a couple of repayments left to repay.
Sadly, in some cases debtors will do everything in their power to avoid debt, trying to find a way to avoid paying and hoping for it to be forgotten. In these instances, creditors tend to use information from Credit Agencies to locate their debtors and continue to chase and report the client’s default.
When this method is unsuccessful, creditors can also use a wide range of other tracing methods to try and find someone.
The Methods Used to Trace Debtors
If you are in the position of trying to find a debtor, you will need a number of tracing tools in your arsenal to achieve success after repeated calls and letters fail to produce results.
It’s important to remember that a court will not support action against a client unless you can prove that you have made contact with them and that they are not responding but also remember that tracing methods can be drawn out and expensive to use.
When it comes to choosing debtor tracing methods, you can use one or more of the following
· Credit Agency searches
· Land Registry searches
· Online searches
· Electoral register searches
· Public record searches
Debtor Tracing Methods – How to Start
If you have exhausted your own methods of contacting a debtor, you may decide that it is time to use a different debtor searching service. To do this you will need to know your debtors full name, the contact details they provided you with along with their date of birth and any other pertinent information you may hold.
Finding someone who owes you money can be a difficult process, but having access to a range of information on them will make it quicker and easier. With their current address (or last known address) in place, you can begin the process of debt recovery by sending them demands and proceeding to bailiff or court action as needed.
When Debtor Tracing Doesn’t Go Your Way
No tracing method is 100% effective, even when you have shared all the information you have found, leaving some debts impossible to recover.
We’ve shared a list of common problems that crop up when creditors start trying to locate their debtors
· Debtor has moved house recently, meaning their online information with Credit Reference Agencies has not yet been updated.
· Debtor has taken on a new name, making it harder to locate them, especially if their legal name has changed.
· Debtor is going through bankruptcy, resulting in you being barred from chasing the money they owe you.
· Debtor has moved abroad, making debt collection more difficult as they will be living under different laws until they return to the UK
In addition, another common issues for creditors is being able to afford the debtor tracing services on offer as they can often be incredibly expensive, costing you more than the debt you are chasing. This is where the inexpensive DebtTrace model becomes very appealing for a debtor search starting at just £19.99*
Understanding Your Options – Credit Reference
One of the most popular ways to locate a debtor is through a credit reference search as this is where all the debtors current financial information is held for companies to see. A credit reference report provides creditors with insight into whether a person is able to afford credit and whether their past credit activity shows them to be a safe choice.
The report also provides up to date information on the debtors address and any aliases or financial partners they may have, giving you ways to locate them in order to recover the monies you are owed.
But this does require access into each Credit Agency to view each data set which can vary between the agencies. As the Credit Reference Agencies are separate organisations, they record and update information independently from one another. UK Credit Reference Agencies obtain their data from numerous sources, including payment information data from UK based lenders and publicly available information, such as the Electoral Roll and court data such as CCJ information, from Local Authorities and the Registry Trust.
The Credit Reference Agencies’ addresses are listed below
TransUnion Limited (formerly Callcredit), Consumer Services Team, PO Box 491, Leeds LS3 1WZ
Crediva Limited, Customer Services, Global Reach, Dunleavy Drive, Cardiff CF11 0SN
Equifax Limited, Customer Service Centre, PO Box 10036, Leicester, LE3 4FS
Experian Limited, Customer Support Centre, PO Box 8000, Nottingham, NG80 7WF
Understanding Your Options – Using the Land Registry
If your debtor owns a property then you may be able to locate them via a Land Registry search. These searches not only give you information on how many properties the debtor owns and the addresses of each property.
But if your debtor is renting from a landlord, your search will give you the landlord’s name details that can be used to contact the debtor, with some further research to obtain their current address. With your search results you will also be able to prove to the courts that the letters you have sent have been posted to the correct address.
Understanding Your Options – Using the Electoral Roll
Another way to locate a debtor is to check the UK Electoral Register which provides you with information on the current (as of the date of the electoral roll searched) address of a debtor as well as their former addresses and other important information that will help you to pursue the matter with the courts if needed. But this search is dependant on the subject updating their data on the Electoral Roll each year and not opting out from the public record in which case the address shown on the Electoral roll when you search can be many years out of date. This search method is hit and miss at best, and not to be relied upon as it is not a current live data search.
Knowing When You May Need More Help
No matter how hard you try to find your debtor, you may end up needing to employ more productive measures to get results. One of the best ways to progress your search is to employ a debtor tracing service that will be able to access information that is not available to you.
There are a number of benefits to using a debt tracing service like the one we offer at DebtTrace® – take a look at some of the most common benefits you can enjoy when you trust us with your debtor searches
· Access to Consumer Data – while there is lots of information readily available for you to search, a debt tracing service has access to datasets that are kept private from the public such as Credit Agency data. From consumer information databases to detailed credit reference searches, a debt tracing company can use these tools to find information that can help you progress your claim against your debtor.
· Low Cost Search Options – many debtor tracing companies offer their services for a fixed fee, meaning that you will know exactly how much your searches will cost before you commit to paying for them. This not only helps you to budget but gives you a clear indication of whether it is worth looking for your debtor or not.
· Legally Compliant Services – when it comes to searching for a debtor, you will be expected to comply with all the UK regulations in order to use the information you find in court. Choosing an experienced debtor tracing service will ensure that you are fully compliant and help you to get access to the documents you need to prove that a debtor lives where you have been sending correspondence.
· Speedy Results – the best debtor tracing services offer a quick turnaround of a week or less, giving you the information you need to progress your search without having to wait. Speed can be important during your search as your debtor may move on, meaning that you will need to work at pace to get all the documentation sent to your debtor at their current address.
With so many great benefits on offer, using a debtor tracing service is not only logical but often the best way to proceed when you are trying to track down someone who has stopped making repayments.
Finding the Right Debtor Tracing Service
When you decide to use a debtor tracing service, it is vital that you take the time to source an experienced and well-qualified service. Some of the best ways to find the right service include looking at verified reviews, asking friends and family for their advice and checking out the pricing structures to ensure that you are getting a fair deal.
At DebtTrace® we offer a fully pay as you go service that starts at just £35.99 per search* – a truly affordable solution! We also offer a wide range of add-ons and other services that you can select depending on your specific requirements. In addition, if we are unable to trace the person you are looking for, we will not charge you for our work, helping you to achieve genuine value for money every time you use our service.
We also know that finding people quickly can be the difference between success and failure, especially if you have requested a court order and need to prove an address is accurate. For the simplest searches, we can supply results in just 30 minutes! The maximum amount of time we take for more complex cases is seven days, meaning that you are able to get the information you need in a timescale that works for you.
DebtTrace® Can Find Your Debtors
If you are ready to use a debt tracing service then DebtTrace® is a great choice.
Our team of debtor tracing experts have access to a wide range of data and information that makes finding your debtors simple. We take pride in offering transparent pricing structure and will refund you all your fees if our searches do not provide the results you need. Head over to DebtTrace® to find out more about what we have to offer and purchase the package that suits your needs.
Introduction
Part 2 - An ultimate guide to debtor tracing in the UK
As a leading debtor tracing agency in the UK, DebtTrace understands the importance of debtor tracing in recovering unpaid debts. In this guide, we will provide a comprehensive overview of debtor tracing and its significance in debt recovery.
Debtor tracing is the process of locating individuals or businesses who owe outstanding debts but have become uncontactable or have moved without leaving a forwarding address. This can be a challenging task, but with the right tools and expertise, it is possible to track down these individuals or businesses and recover the outstanding debts.
Why is debtor tracing important?
Debtor tracing is crucial in debt recovery for several reasons. Firstly, it allows creditors to locate debtors who may have disappeared without paying their debts, thus increasing the chances of recovering the outstanding amount. Secondly, it helps creditors to identify assets owned by the debtor that can be used to settle the debt. Lastly, it prevents creditors from wasting time and resources pursuing debtors who are no longer at the address on file. Thirdly it is required prior to issue of any legal proceedings in the UK to check and validate any address to be used on court paperwork or applications. You will then verify the address to be used is correct and current before issue of LBA (letter before action) and/or Court proceedings, remaining compliant with The Civil Procedure Rules, and Practice Direction on pre-action conduct.
What information do you need to trace a debtor in the UK?
In general, to trace a debtor in the UK, you may need the following information:
1. The debtor's full name, including any aliases or previous names.
2. Their last known address.
3. Their date of birth or approximate age.
4. Any contact information, such as a phone number or email address.
5. Any relevant employment history or employer details.
8. Any relatives or co-habitee names and old addresses
It's important to note that tracing debtors can be a complex and sensitive process, and there are strict legal requirements and regulations surrounding it. It's recommended to seek professional advice or work with a reputable debt tracing agency.
How does debtor tracing work?
Debtor tracing involves using various techniques and tools to locate debtors who have become uncontactable. These techniques include some of the following information paths:
Credit reference agencies
These credit reference agencies provide information on an individual's financial history, including their credit score, any outstanding debts, and their current address.
A UK credit agency is an organization that collects information about individuals and businesses' credit history and sells this information to lenders, creditors, and other organizations that need to evaluate creditworthiness. Credit agencies assess an individual's or business's creditworthiness based on their payment history, credit utilization rate, and credit score.
There are three main Credit Agencies in the UK: Experian, Equifax, and TransUnion.
1. Experian is a global credit agency that operates in the UK. It provides credit reports and credit scores to individuals and businesses, allowing them to monitor their credit history and identify any issues that may affect their creditworthiness. Experian also offers identity theft protection and fraud monitoring services.
2. Equifax is another global credit agency that operates in the UK. It provides credit reports and credit scores to individuals and businesses, as well as fraud prevention and identity theft protection services. Equifax also offers credit monitoring services, allowing customers to receive alerts when changes are made to their credit reports.
3. TransUnion is a credit agency that operates in the UK, providing credit reports and credit scores to individuals and businesses. TransUnion also offers identity theft protection and fraud prevention services, as well as credit monitoring services to help customers manage their credit scores.
In summary, a UK credit agency collects and analyzes credit data, then creates credit reports and scores that lenders and other organizations use to evaluate creditworthiness. The three main credit agencies in the UK are Experian, Equifax, and TransUnion.
Electoral roll
The electoral roll is a public record of all registered voters in the UK. It can be used to locate individuals who have moved to a new address.
The UK electoral roll, also known as the electoral register, is a list of all eligible voters in the UK. It is maintained by local authorities and updated annually. The data on the electoral roll is used for various purposes such as conducting elections, verifying identities for credit checks, and preventing fraud.
The electoral roll contains the names and addresses of all eligible voters in a particular area. This includes UK citizens, EU citizens, and Commonwealth citizens who are over 18 and have registered to vote. The information on the electoral roll is public and can be accessed by anyone for a fee.
The data on the electoral roll is used by various government agencies, political parties, and credit reference agencies. It is also used by companies to verify the identity of individuals for credit checks and other purposes. The data on the electoral roll is protected by data protection laws and can only be used for specific purposes.
Individuals have the right to opt-out of the electoral roll if they do not want their information to be shared. This is called the open register. However, it is important to note that opting-out of the open register does not affect an individual's right to vote.
In summary, the UK electoral roll is a list of all eligible voters in the UK that is maintained by local authorities. The data on the electoral roll is used for various purposes such as conducting elections, verifying identities for credit checks, and preventing fraud. The data is protected by data protection laws and individuals have the right to opt-out of the open register.
Social media
Social media platforms can be used to gather information on individuals, including their current location, employment status, and interests.
Investigators may use social media for various purposes such as:
1. Gathering evidence: Investigators may use social media to collect evidence related to a crime or a case they are working on. They may search for posts, photos, videos, or messages that could provide insights into a suspect's behavior, connections, or activities.
2. Identifying suspects or witnesses: Social media can provide investigators with valuable information about the identity, location, or contact details of potential suspects or witnesses. They may use social media to search for individuals who match a particular description or who have been tagged or mentioned in relevant posts.
3. Monitoring criminal activities: Investigators may use social media to monitor the activities of criminal organizations or individuals involved in illegal activities. They may track their conversations, posts, or messages to gather intelligence or to prevent future crimes.
4. Building relationships with the community: Social media can also be used by investigators to build relationships with the community and to gather information or tips from the public. They may use social media to share updates on ongoing investigations, to request information or assistance, or to provide safety tips or warnings.
Overall, social media can be a useful tool for investigators, but it should be used ethically and lawfully. Investigators should respect individuals' privacy and follow legal guidelines when collecting, analyzing, or sharing information obtained from social media.
Private investigators & Tracing Agents
Private investigators or Tracing Agents can be hired to conduct a more in-depth search for debtors, including surveillance, background checks, and interviews with friends and family.
Debtor tracing agents are professionals who specialize in locating individuals who owe debts to their creditors. In the UK, they are commonly used by businesses and individuals who have been unable to locate debtors in order to recover outstanding debts.
Debtor tracing agents use a variety of methods to locate debtors. They often begin by conducting extensive research using various databases and information sources, including credit reference agencies, electoral rolls, and public records. They may also use private investigators to gather additional information, such as employment history, financial records, and social media profiles.
Debtor tracing agents can be very effective in locating elusive debtors, particularly those who have moved or changed their contact information in an attempt to avoid paying their debts. They are often used by businesses that have large numbers of outstanding debts, as well as by individuals who are owed money by friends or family members.
Overall, debtor tracing agents play an important role in the debt recovery process in the UK. By utilizing a variety of information sources and investigative techniques, they are able to locate debtors who might otherwise remain hidden, and help creditors to recover the money that they are owed.
Debtor tracing is a complex process that requires expertise and resources. At DebtTrace, we have a team of experienced professionals who use the latest techniques and tools to locate debtors and recover outstanding debts.
Land registry searches
A land registry search is a legal process that involves a search of the Land Registry database to obtain information about the ownership of a property or land. This information includes the name and address of the registered owner of the property.
If a debtor owns a property or land, a land registry search can be used to locate their address. The search can be carried out by anyone, including creditors or debt collection agencies, who have a legal interest in the property.
To conduct a land registry search in the UK, you need to know the property's address or the title number. The search can be done online, by post, or in person at a local land registry office.
Once the search is complete, the details of the registered owner, including their address, will be provided. This information can be used to locate the debtor and recover any outstanding debts.
However, it is important to note that a land registry search only provides information about the current ownership and not the residential details of who actually resides at the property owned by the debtor.
Examples of how debt collectors trace & locate debtors in the UK
In the UK, debt collectors use various methods to trace a debtor's current address. The exact process may vary depending on the nature of the debt, the amount owed, and the debtor's circumstances. Here is a general overview of some of the methods that debt collectors use to find a debtor's current address:
1. Contacting the debtor's known associates: Debt collectors may contact the debtor's friends, family members, or employer to obtain information about their current address. However, they must be careful not to disclose the nature of the debt or harass the debtor's associates. Debt collectors must also ensure that they comply with data protection laws and obtain consent from the debtor's associates before contacting them.
2. Checking public records: Debt collectors may search public records such as the electoral roll, land registry, and Companies House to obtain information about the debtor's current address. They may also check court records to see if the debtor has any ongoing legal proceedings.
3. Using credit reference agencies: Debt collectors may use credit reference agencies to obtain information about the debtor's current address. Credit reference agencies maintain a database of individuals' credit histories, which includes their current and previous addresses.
4. Using online databases: Debt collectors may use online databases such as social media, online directories, and search engines to obtain information about the debtor's current address. However, they must be careful not to violate the debtor's privacy or use illegal methods to obtain information.
5. Employing private investigators: Debt collectors may hire private investigators or tracing agents to trace debtors. Private investigators use various methods such as surveillance, interviews, and background checks to obtain information about the debtor's current address.
Once debt collectors have obtained the debtor's current address, they must ensure that they comply with the FCA's debt collection guidelines. Debt collectors must communicate with debtors in a fair, transparent, and professional manner. They must also ensure that they do not harass, intimidate, or threaten debtors. If debt collectors violate the FCA's guidelines, debtors can complain to the Financial Ombudsman Service or take legal action against them.
The benefits of using a professional debt tracing service?
1. Increased chances of debt recovery: Professional debt tracing services have access to a wide range of databases and resources that can help in locating debtors who have disappeared or are difficult to trace. This increases the chances of recovering the debt.
2. Saves time and effort: Debt tracing can be a time-consuming and tedious process. By using a professional debt tracing service, businesses can save time and effort that can be used in other areas of their operations.
3. Protects the reputation of the business: Debt collection can be a sensitive issue, and businesses need to be careful not to damage their reputation in the process. By using a professional debt tracing service, businesses can ensure that they comply with all relevant laws and regulations and minimize the risk of negative publicity.
4. Cost-effective: Professional debt tracing services can be a cost-effective way of recovering debts. Compared to the cost of hiring an in-house team or outsourcing to a debt collection agency, debt tracing services can be a more affordable option.
5. Access to expert advice: Debt tracing services often have experienced professionals who can provide expert advice on debt recovery. This can be particularly useful for businesses that are new to debt collection or have limited experience in this area.
6. Reduces stress: Debt collection can be a stressful experience, particularly for small businesses or individuals. By using a professional debt tracing service, businesses can reduce the stress associated with debt collection and focus on running their operations.
What are the costs of using a debtor tracing agency
Costs vary across the UK with different services for tracing a debtors current address. Some services can charge up to £500 per search and some will charge even if they do not locate an address for the debtor which is known as a negative trace fee.
DebtTrace changes this and charges a low fixed fee of £35.99* excluding VAT and if we do not locate a current address for your debtor we will refund this fee in full, known as no trace no fee. All of the DebtTrace services are completed or refunded (where we cannot locate a current address) within a maximum of just 7 days and most services are completed and located in just 24 hours.
Conclusion
In conclusion, debtor tracing is an essential tool for creditors seeking to recover outstanding debts. With the right expertise and resources, it is possible to locate debtors who have become uncontactable and then recover the amount owed.
If you need help with debtor tracing or debt recovery, contact DebtTrace
Struggling with unpaid debts? Start recovering what's owed to you today.
Resources
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