Debtor Tracing: what to do when you have absconded tenants

Debtor Tracing

When a commercial tenant absconds, they can be difficult to trace. Debt recovery options depend on knowing where they are, though, so tracking debtors down is essential to reclaiming rent arrears. Here we can take a look at what you can do, who can help, and how to find the best possible tracing services.

What you can do yourself

Calling, emailing and sending registered letters are the first steps. Even if your tenant doesn't respond, you'll have a paper trail to prove you gave them the chance to settle their account. Next, you can search publicly available information such as the electoral register, Companies House data or an online phone book.

After this point, you must be careful. Harassment and stalking rules prevent you from searching for private data, or making enquiries that may publicly shame or embarrass the debtor. The Data Protection Act 1998 and GDPR (General Data Protection Regulation) also limit what private data you may access, how you can use it and also dictate that you must protect any information you obtain.

Essential debtor tracing tools

Because of the legal sensitivities involved and the lack of safe-to-use, publicly available information, it may be wise to use a professional tracing service. As well as having an understanding of any legal obligations, they may also have access to additional technology and data such as:

• Private sector databases
• Financial information, to ascertain the debtor's ability to pay their arrears
• Digital search tools that automatically search dozens of databases
• Smart searches that identify people, businesses and addresses connected to the absconded debtor
• Smart searches that flag any known aliases of debtors who may have changed their identity or adopted a fake persona

How to choose a tracing agent

When you're searching for tracing services, there are several things you should find out before you choose an agent. They are:

• What tools do they have access to?
• How long have they been working in the industry?
• What do they charge for the service?
• Do they have a 'no find, no fee' policy?
• Are their agents trained to handle associated legal matters?
• Do they also provide debt recovery services, so you can recoup your arrears when the debtor is found?

With over 26 years of experience tracing debtors, Dukes Bailiffs is well-equipped to help. Contact us today to find out more.