We see many companies popping up, we see high volume skip trace firms, we see repossession companies that advertise skip trace as well. In fact we see it so often it makes it seem as though anyone can do it and it’s as easy as that. Just decide on adding a skip trace division and open up. The big question lies in will a bank or finance company actually hire these types of companies?
They probably do every now and then and also these so called skip tracing companies can probably also find many of the cases that may or may not be worth it to the bank. It may be worth it in the sense that they only charged a small skip trace fee of somewhere in the neighborhood of $300.00 so the finance company is happy. The question remains though is the finance company happy tying up cases with these so called skip tracers where only about 70% or less gets found. At that point does it stay worth it for them, I think not. I also think there is a big difference in what exactly they are skip tracing to begin with. For example if it is a subprime finance company that only has cars with balances due of 12,000.00 and real value is around 5,000.00 is it still worth it to pay $1,000.00 or more per unit to a company that will really work each case and stay in the 98% recovery rate percentile. I believe after its said and done after each year, to pay a real skip trace company as opposed to some company that just threw up an ad that they skip trace.