CIP Skip Tracing & Debtor Location 3

Question 1

What is the 'waterfall' approach in skip tracing?

Accepted Answer

Progressively moving through a sequence of data sources from least to most expensive

Answer

The waterfall approach involves systematically progressing through skip tracing data sources starting with the cheapest, escalating to costlier sources only when less expensive options fail.

Question 2

What is 'batch skip tracing'?

Accepted Answer

Submitting a large group of accounts simultaneously to a data provider for location updates

Answer

Batch skip tracing involves submitting multiple accounts at once to a database provider, which returns updated location data for the entire group, dramatically improving efficiency.

Question 3

What is a 'suppression file' in the context of skip tracing and collections?

Accepted Answer

A file of records to exclude from contact, such as deceased individuals or do-not-contact requests

Answer

A suppression file contains records that must be excluded from skip tracing and contact campaigns, including deceased individuals, litigious consumers, and do-not-contact requests.

Question 4

What does 'employment verification' accomplish in the skip tracing process?

Accepted Answer

Confirming a debtor is employed and identifying their employer to facilitate potential wage garnishment

Answer

Employment verification in skip tracing confirms active employment and identifies the employer, which can facilitate wage garnishment if a legal judgment is later obtained.

Question 5

What ethical consideration is paramount when conducting skip tracing activities?

Accepted Answer

Using only permissible data sources and respecting consumer privacy rights under applicable law

Answer

Skip tracing must use only legally permissible methods and data sources while strictly respecting consumer privacy rights under laws such as the FDCPA, FCRA, and applicable state statutes.

CIP - Collection Industry Professional Certification Practice Test

CIP - Collection Industry Professional Certification Practice Test

CIP Skip Tracing & Debtor Location 3