What is Tracing?
Tracing is the skilled profession of tracking debtors. It’s only natural that people and businesses move around, leaving outstanding debt in their wake. The industry often defines these people as ‘gone aways’, moving without any notification leading to a breakdown in communication. Gone aways have a significant impact on many businesses. It’s unprofessional for businesses to contact a gone away at their previous address and it is also a requirement under the Data Protection Act that all personal details be up to date. It also defines that holding historical data is a breach of the act.
Debtor tracing is the process of tracking down outstanding debtors which ideally should lead to the parties in question resolving the debt. Effective tracing can only be done with the right level of expertise and tools.
Keeping personal data up to date, identifying and tracing debtors can cut into the time of many growing businesses so the idea of outsourcing this to specialist data cleansing and tracing agents is becoming more popular.
What is Data Cleansing?
Consumer databases lose accuracy at a significant rate over time so it is recommended that every business make the process of ‘data cleansing’ an integral procedure. This procedure prevents accuracy loss by identifying moving individuals and de-duping records. It is also recommended that the data is cleansed against opt out registers such as the telephone preference service to ensure that your brand is protected.
A complete, up to date database is a rich business resource and allows you to get the most from it, having a knock on effect for other areas for other areas of the business. It also ensures that your business complies with the Data Protection Act.
What are the advantages of outsourcing Data Cleansing and Debtor Tracing?
Outsourcing data cleansing solutions to reputable companies ensures that your databases are kept up to date and counteracts any potential loss in data accuracy.
Outsourcing tracing to reputable tracing agents allows people and businesses to track down debtors much more effectively. The techniques used to track down such people can cause debate so it is recommended that you make sure that the tracing agents use ethical and legal methods.
All tracing agents should use only fully DPA (Digital Protection Act) compliant techniques otherwise they will be unlawfully obtaining information, contravening section 55.