Skip Account

AAA

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.

INVESTOPEDIA EXPLAINS '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. Adjunct Account

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

    The degree of likelihood that the borrower of a loan or debt ...
  3. Creditor

    An entity (person or institution) that extends credit by giving ...
  4. Debtor

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

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

    The event in which companies or individuals will be unable to ...
Related Articles
  1. Choose Your Monthly Mortgage Payments
    Home & Auto

    Choose Your Monthly Mortgage Payments

  2. The Frosty, Festive World Of Investing
    Personal Finance

    The Frosty, Festive World Of Investing

  3. The Impact Of An Inverted Yield Curve
    Bonds & Fixed Income

    The Impact Of An Inverted Yield Curve

  4. Understanding Your Mortgage
    Personal Finance

    Understanding Your Mortgage

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center