Why financial institutions need services of private investigators in asset recovery and background checks to avoid losing money to bad debtors and white-collar criminals.
American household debt hit a record $13.21 trillion in 2018. According to a recent FICO report, there are 43.4 million people who have a credit score of 599 or less in the United States, which represents about 25% of all Americans.
Many times we limit the work of a private investigator to pursuing wrongdoers: criminals, a cheating spouse, a school child who needs constant surveillance or gathering crucial evidence to support civil and criminal proceedings in a court of law, Private investigators can be used to seal loopholes in the financial sectors all over the world where lenders lose millions of money to bad debtors and untraceable assets which were used to guarantee the same loans.
Credit reference bureaus are especially important when it comes to analyzing who is worth securing loans from the financial institutions and who cannot qualify for the same. However, not all relevant information is captured in their database, leaving a big loophole for white collar criminals and bad debtors to masquerade as good debtors with clear financial goals and later defraud these institutions their money.
Private Investigators can examine the authenticity of all the paperwork done before and after the loan processing process and pinpoint out all the possible loopholes to help financial institutions make the right decisions to avoid financial losses.
Investigators can establish the existence of the debtor’s offices, location, headquarters, and confirm from a third party the credit score of the principal debtor and his/her affiliated companies. Sometimes bad debtors use close relatives to seek loans that they will never pay. Private investigators can easily trace their movable assets in case the debtor refuses to service their loan when the instructions to recover the loan balance through the auctioneers is issued by the lenders.
Monitoring debtor’s assets until the last loan installment is cleared.
Financial institutions specialize in the provision of financial services but not investigative services. For that reason, private investigators can offset the baggage off the lender’s shoulders by monitoring the movement of assets to ensure that lenders still have access to their assets as. The law is noticeably clear that all assets on loan are jointly owned by the financial institution and the principal debtor until the last installment is cleared.
In the case of vehicle asset financing, financial institutions have a right to track and trace the co-owned vehicle’s whereabouts. Private investigators are in a better position to alert these financial institutions in case the tracker is tampered with, or the principal debtor is a flight risk when pursued by the debt recovery agencies in case the worst happens.
Sometimes the worst happens, and the financial institution loses contact with its debtors and the assets serving as securities can no longer be traced for several reasons among them tampered tracking systems, misleading information on asset location, among others.
Private investigators can help these financial institutions to trace the whereabouts of principal debtors’ assets, which can be repossessed and sold to settle bad debts. Most private investigators have backgrounds in law enforcement, and they have the best investigative skills which can be used to save the financial sector from losing money to bad debtors.
Private investigations service is a noble profession that for many years has aided decision makers make the right decisions for their companies or organizations. We cannot forget how helpful private investigators have been to many families when it comes to monitoring and surveillance of family members for their security and general family stability.
For that reason, financial sectors must incorporate private investigators into their day to day life especially in credit department to safeguard their money against bad debtors and white-collar criminals.
Private investigators are needed throughout the entire process of loan processing as well as mortgage financing and until a point where the principal debtor has cleared his/her loan, the principal debtor must be monitored as not all of them are good debtors.
article submitted by GetEvidenceNow