Skip Account

DEFINITION of 'Skip Account'

A borrower who defaults on a loan and skips out on repayment by moving without providing a correct forwarding address. Skip tracers are collection agents hired by lenders to find skip accounts and collect the money owed on the account, or a promise to repay the debt in full.

BREAKING DOWN 'Skip Account'

In some cases, accounts can be mislabeled as a skip account. For example, when a typing error (typo) is made on an account it can be mislabeled as a skip account when the debtor is delinquent on repayment. Or an unintentional account error on the part of the debtor (moving without remembering to alert the lender of the change of address) can lead to an account being mislabeled as a skip account.

RELATED TERMS
  1. Skip Tracer

    A professional who tracks down individuals who don’t want to ...
  2. Skip-Payment Mortgage

    A mortgage program that allows the borrower to skip (not pay) ...
  3. Collection Agency

    A company hired by lenders to recover funds that are past due ...
  4. Chart Of Accounts

    A listing of each account a company owns, along with the account ...
  5. Repayment

    The act of paying back money previously borrowed from a lender. ...
  6. Reaffirmation

    An agreement made between a debtor and a creditor to repay some ...
Related Articles
  1. Professionals

    Identify Transfers Subject to the GSTT

    Identify Transfers Subject to the GSTT
  2. Credit & Loans

    Student Loans: Loan Repayment

    After graduation you'll begin the task of paying off your student loans. This is called entering repayment. The term repayment is used because your lenders made payments to you while you ...
  3. Credit & Loans

    What Does a Lender Do?

    A lender provides funds to another with the expectation those funds will be repaid with interest.
  4. Operating as a Public Company

    IPO expenses do not end on IPO day, that is just the beginning. Before you go public, all accounting and reporting requirements are set by executives and investors. As long as the owners are ...
  5. Term

    What's a Debtor?

    A debtor​ is an individual or company that owes money.
  6. Professionals

    Answer Key

    Answer Key
  7. Savings

    The 5 Best Alternatives to Bank Saving Accounts

    Find out about some of the most profitable available alternatives to depositing money in a traditional bank passbook savings account.
  8. Fundamental Analysis

    The Importance Of Analyzing Accounts Receivable

    While investors often focus on revenues, net income, and earnings per share, they should not overlook the importance of analyzing accounts receivable.
  9. Home & Auto

    4. Not Enough Knowledge

    Learn about common mistakes of flipping houses before trying one on your own.
  10. Economics

    Forces Behind Interest Rates

    Interest is a cost for one party, and income for another. Regardless of the perspective, interest rates are always changing.
RELATED FAQS
  1. What would happen if you tried to skip steps in the accounting cycle?

    Understand what would happen if a company or accounting department tried to skip steps in the accounting cycle. Learn why ... Read Answer >>
  2. How do debt collection agencies make money?

    Find out how a collection agency makes money, what rules it is bound by, and when it can take a pay check or garnish a bank ... Read Answer >>
  3. What does it mean when the shares in my account have been liquidated?

    An account liquidation occurs when the holdings of an account are sold off by the firm in which the account was created. ... Read Answer >>
  4. What is the most important "C" in the Five Cs of Credit?

    Learn how the five C's of credit affect new credit application decisions, and understand how a lender analyzes each aspect ... Read Answer >>
  5. How can a creditor improve its Average Collection Period?

    Read about some of the ways that a business can improve its accounts receivable management practices to shorten its average ... Read Answer >>
  6. Can a creditor sue me for a delinquent account?

    Learn what happens when an account is delinquent and read about the regulations that protect consumers who have delinquent ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center