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.

  1. Adjunct Account

    An account in financial reporting that increases the book value ...
  2. Creditor

    An entity (person or institution) that extends credit by giving ...
  3. Default

    1. The failure to promptly pay interest or principal when due. ...
  4. Default Risk

    The event in which companies or individuals will be unable to ...
  5. Collection Agency

    A company hired by lenders to recover funds that are past due ...
  6. Debtor

    A company or individual who owes money. If the debt is in the ...
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