The lending industry is facing challenges unlike anything we have seen in years. Auto loan balances have reached a record $1.66 trillion*, and with delinquencies rising sharply, lenders are under intense pressure to protect their portfolios. More than 3 million vehicles are projected to be repossessed in 2025, and below-prime loans now account for nearly one-third of outstanding balances.
These realities mean that lenders cannot afford to rely solely on traditional borrower information provided at the time of loan application. Phone numbers and addresses often go stale within months. To reduce losses, lenders need greater visibility into vehicle location and movement, which traditional data sources cannot provide.
For lenders, effective skip tracing is the critical difference between resolving a delinquent account and writing off the balance. At DRN, we have modernized skip tracing by combining real-time license plate recognition data, public records, and advanced analytics into a single, lender-focused solution.
What Skip Tracing Means for Lenders
Skip tracing in lending is the process of locating a vehicle tied to a delinquent account when traditional borrower contact information is no longer reliable
- Locating vehicles tied to delinquent accounts helps prevent charge-offs by enabling the positive resolution of the loan or the recovery of the unit.
- Using verified vehicle intelligence to confirm addresses and prioritize recovery.
- Providing accurate, real-time vehicle data that helps collections teams focus resources effectively.
Historically, skip tracing was performed using public records searches, credit bureau data, and manual investigations. While these sources are still useful, they leave major blind spots due to “stale” data. Traditional methods often fail because real-time vehicle location data is not included. Mailing addresses and phone numbers are slow to update, leaving major blind spots for the skip tracer to spend time decoding the best contact information.
This is why DRN’s approach is so powerful. By layering license plate recognition (LPR) data on top of third-party data sources, lenders gain increased visibility into vehicle movement and location patterns to allow skip tracers to work at a higher effectiveness level.
The DRN Difference: Real-Time Vehicle Intelligence
At the core of DRN’s skip tracing solution is the nation’s largest vehicle intelligence platform. With more than 500 million license plate scans captured every month, DRN offers unmatched visibility into vehicle movement across the country.
When this data is combined with third-party public records and enriched with analytics, lenders get more than just a last known address. They get a complete profile that includes:
- Verified vehicle sightings are used to score and confirm addresses on file.
- Real-time vehicle movement data to strengthen collections strategies.
- Risk scoring that prioritizes which accounts are most likely to resolve.
This kind of intelligence allows lenders to act efficiently and with greater confidence. Instead of chasing outdated leads, they can reach borrowers earlier in the delinquency cycle and prevent accounts from slipping further into loss.
Skip Tracing Across the Loan Lifecycle
Lenders face different challenges depending on where a borrower is in the loan lifecycle. DRN skip tracking module equips lenders with the intelligence to address each stage with precision.
Loan Origination and Early Stages
At the start of the loan, visibility matters most. DRN helps validate borrower information at origination and monitors portfolios for early signs of risk. When irregularities appear such as a borrower using a false address, lenders can spot the problem quickly and act before losses mount.
Collections
Once accounts become delinquent, time is the most valuable resource. Collections teams need to know where vehicles are located and which accounts require immediate attention. DRN’s skip tracing tools cut through stale data and provide verified borrower information, allowing teams to refine outreach strategies and focus on the accounts most likely to resolve.
Recovery and Repossession – Front end
When accounts move beyond 90 days past due, recovery becomes the priority to prevent potential charge-offs. DRN works hand-in-hand with MVTRAC, our repossession services partner, to deliver fast and fully compliant recoveries. Compliance is built into every step of the process: all repossession agents undergo stringent pre-approval and certification to ensure they operate within federal, state, and local legal boundaries. Agents are CARS Financial Client Certified and RISC Certified, which reduces the likelihood of lawsuits or regulatory penalties. Vehicle sightings from DRN’s LPR network feed directly into repossession workflows, helping agents locate assets in real time. Assignments are matched to the most qualified certified agents, and impounds are managed with full documentation and fee coverage. The result is faster recoveries, reduced risk, and greater transparency for lenders.
Deficiency and Extended Services – The Safety Net
For accounts that remain unresolved by front-end forwarding, SCM (Secure Collateral Management) provides the final piece of the puzzle by acting as a charge off safety net. SCM extends DRN’s intelligence into the most complex stages of the loan lifecycle, offering expert-led skip tracing, impound coordination, appraisals, and deficiency collection strategies for aged accounts.. This ensures that lenders can maximize revenue recovery even after vehicles are presumed to be lost or balances remain.
Why Lenders Trust DRN
Since 2009, DRN has been a trusted partner to more than 300 financial institutions. Together, those lenders have:
- Recovered more than 2.8 million vehicles.
- Protected more than $28 billion in recovered vehicle value.
- Used 500 million monthly license plate scans to make smarter risk and recovery decisions.
These results are not possible with traditional skip tracing methods alone. By combining real-time vehicle intelligence with third-party public records and analytics, DRN delivers a level of accuracy and speed that lenders need in today’s market.
Best Practices for Skip Tracing Success
Lenders who succeed with skip tracing follow a few key principles:
- Utilize multiple data sources layered with LPR data to confirm vehicle location.
- Apply intelligent scoring to prioritize accounts with the highest recovery potential.
- Integrate vehicle intelligence into collections and recovery workflows for seamless execution.
- Monitor vehicles continuously to detect risk early and act before losses grow.
DRN’s platform is built with these best practices in mind, ensuring that lenders not only recover more but also stay compliant and efficient in the process.
Final Thoughts
The lending landscape is more complex than ever. With rising balances, higher delinquencies, and an increase in repossessions, lenders cannot afford to work with stale borrower data. Traditional skip tracing methods leave too many gaps and cost too much time.
DRN brings something different to the table. By combining license plate recognition data with public records and advanced analytics, we give lenders the ability to locate borrowers faster, recover more vehicles, and protect portfolio performance. And with MVTRAC and SCM completing the recovery cycle, lenders gain access to the industry’s most comprehensive end-to-end solution.
If you are ready to strengthen your collections, reduce charge-offs, and safeguard your portfolio, DRN is here to help.
Frequently Asked Questions
What is skip tracing in lending?
Skip tracing in lending is the process of locating vehicles tied to delinquent accounts when traditional borrower contact information is outdated or unavailable.
How is DRN skip tracing different?
DRN combines real-time license plate recognition (LPR) data with third-party public records and analytics. This creates accurate vehicle profiles that give lenders more than just location. The intelligence helps them act at the right time. By applying risk scoring and movement patterns, lenders can prioritize accounts that are most likely to resolve, time outreach more effectively, and coordinate repossessions when the probability of recovery is highest.
Is skip tracing legal?
Yes. Skip tracing is legal when conducted in compliance with federal and state regulations. DRN maintains the strictest privacy, compliance, and data breach standards and legislation that are currently enforced by both government entities and the financial services industry.
Who uses DRN skip tracing?
Banks, credit unions, auto finance companies, and collections agencies use DRN to locate vehicles faster, recover more assets, and reduce charge-offs.
Does DRN provide repossession services?
Through its partner MVTRAC, DRN supports faster, more compliant repossessions. Compliance is central to this partnership: certified agents follow strict federal, state, and local requirements, reducing risk exposure for lenders. In addition, SCM extends DRN’s capabilities further into deficiency collections and specialized recovery efforts, providing expert-led support even in complex, aged cases.