The legal context of the term data scrubbing refers to a process which provides an initial review of a debtor’s financial and legal status, especially in the areas of addresses and residency, and any significant financial changes like bankruptcy. This ‘scrub’ of public records is usually conducted as a preliminary step before issuing a letter of demand to the debtor in question.
The advantage of conducting this scrub of a debtor’s status is that it can be done relatively quickly, since it is a standardized process, and that will shorten the timeframe before a demand letter can be issued. It is also possible that such a scrub will reveal that a particular debtor is deceased, in which case collection strategy would be altered.
Changes of address are very important as well, in the event that a debtor is attempting to thwart attempts at contact, or buy time before being forced into compliance. This kind of practice will be uncovered by data scrubbing, and appropriate measures can then be taken. It is fairly common once some kind of legal action is anticipated, for debtors to make significant changes in legal or financial status, so as to stave off funds recovery attempts.
Baker, Bloomberg & Associates can provide periodic data scrubbing to ensure that any updates to a debtor’s status are known quickly and can be reacted to as needed. Staying aware of the most recent information is a must for cases involving funds recovery.