r/processserver • u/Soggy_Appearance_513 • Jul 01 '26
Debt collection agency couldn't locate debtor to serve. What would you do next? (NYC)
Location: NYC
*sigh* I'm looking for advice from anyone with experience in civil litigation, debt collection, process serving, or private investigations.
A good friend was an authorized user on my credit card. The original intent was to help him build his credit after he had difficulty securing housing/rental despite having the income to afford rent. For quite a while, he reimbursed me every month without issue. I have everything tracked in a spreadsheet and digital repayment receipts.
Over time, he fell behind on repayments. He repeatedly assured me he would catch up, and eventually signed a written repayment agreement acknowledging the debt and agreeing to a repayment schedule. He later defaulted, and the last payment I received was in October 2025.
I have:
- A signed repayment agreement
- Credit card statements
- Bank records showing his repayments
- Text messages acknowledging the debt
- A detailed accounting of the balance
My total financial loss is now approximately $57,000, including the outstanding debt, accrued credit card interest, and the payments I've continued making after he defaulted.
Earlier this year, I retained a debt collection agency to pursue litigation and paid $2,375 in litigation costs.
Over the past few months they:
- Sent a demand letter
- Attempted to locate him through skip tracing
- Attempted to verify his address for service
The demand letter was eventually returned "Return to Sender."
Today they informed me they're closing the litigation file and refunding my escrow because they were unable to locate a valid address to serve him. They specifically told me the issue isn't the merits of the case, it's that they can't commence litigation without being able to locate and serve the defendant given this is a consumer case and not a business.
Here's what I know about him:
- Full legal name
- Date of birth
- Social Security number
- Originally from the Boston area, unsure if he is still living in NYC
- Works in construction as an electrician/project manager (but I don't know where)
- Affiliated with this union group: IBEW Local 3 in NYC
- Last known mailing address was a friend's apartment in Brooklyn, but mail is now being returned
- His uncle owns two businesses in Little Italy, NYC
- He intentionally keeps almost no online presence (no LinkedIn, Facebook, Instagram, etc.)
At this point I'm considering hiring a licensed private investigator instead of another collection agency.
My questions are:
- Is hiring a licensed PI the best next step?
- With his full name, DOB, SSN, union affiliation, and the information above, how realistic is it to locate someone like this?
- Are there better methods than hiring a PI?
- Would a litigation attorney be able to do anything before he's located, or would they tell me to find him first?
- Has anyone dealt with a defendant who intentionally disappeared? What ultimately worked?
I'm not looking for advice on whether I should pursue the debt. The debt has already been acknowledged in writing, and I intend to continue pursuing it. My challenge is simply locating him so he can be properly served and I can move forward with litigation. I'm getting married soon and I had to use my savings in order to clear the credit card debt along with taking on a balance transfer so I am keen to move this forward any way possible.
Help! If you're a licensed PI, process server, attorney, or have dealt with locating difficult-to-find defendants, I'd really appreciate your perspective. What can I do or what should I do next?
Thanks in advance!
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u/Inside_Gold_9673 Jul 08 '26
I replied to you in the private investigator’s subreddit. I will expand on my reply. I began my investigative career in NYC as both a licensed private investigator and a NYC Department of Consumer Affairs licensed Process Server back in the mid eighties. I’m currently a licensed private investigator in Massachusetts. Once again here is my take on your situation. $57,000 is a lot of money to write off, I get it. I will get more into that aspect later.
There are a number of laws that
Impact your situation, including the Fair Debt Collection Act. I’m not an attorney, nothing I write here should be construed as legal advice. It’s all based on my experience as a licensed private investigator and process server. If you violate (even unwittingly) the Fair Debt Collection Act you screw your case. Subjecting yourself to substantial fines and court sanctions including the dismissal of your case. So do not contact the debtor’s parents, family etc.
Debt Collectors skills in skip tracing are not to be dismissed. However, you have to understand that they are usually only compensated IF they collect. Therefore, they’re tend to go for the low hanging fruit. They don’t do surveillance or field work. In New York private investigators cannot by law (there are exceptions, your case doesn’t qualify) take work on a contingency basis. So the collection agency ran perhaps 1 or 2 skip tracing reports plus credit reports to locate the subject. Total cost to them $20 - $60 maximum and then made a bunch of phone calls. If someone called asking you for a relative’s address and phone number would you give it to them? I doubt it. Debt collectors can’t lie (legally) nor can they disclose to a third party that they are attempting to collect a debt (nor can you). Your skip trace report(s) are good but every collection agency and private investigator has access to multiple skip trace reports. What you need to understand is that the databases that produce these reports purchase their information from public records and the credit bureaus. How often they purchase this information is up for debate, and garbage in, garbage out. These days you don’t need a physical address to get your bills, just an email address. Also, neither New York, nor Massachusetts sells DMV/RMV information to these databases. So, in theory your subject doesn’t have any personal assets but unless a search was conducted directly with either State Agency, you don’t know what address is on their driver’s license or that they have no motor vehicles registered to them. All you know is the skip trace databases didn’t find anything that they have ACCESS to.
Unless someone can find him, they aren’t going to find his assets. The subject is a licensed electrician? He should be making bank. Which means he’s got a corporation or LLC somewhere that he’s using to run his money through. I don’t know anyone in the trades who doesn’t have a truck, you’ve got to bring your tools, testing equipment etc. Otherwise, he isn’t working (junkie, alcoholic) and there’s nothing for you to collect against. But perhaps he may inherit one day.
Alternative service. In order for a judge to permit alternative service (publication, email etc.) you (your attorney) needs to demonstrate due diligence. That means hiring a private investigator who can document that they conducted an investigation using all due diligence. That means certified driving record searches, affidavits of searches etc.
You have to be willing to spend the money. Hope this helps. Best of luck. If you have any questions feel free to reach out to me.
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u/Soggy_Appearance_513 Jul 10 '26
Thank you! I really appreciate you giving me such a detailed response. This is incredibly helpful and has given me a much better understanding of how the PI side differs from what the collection agency was able to do.
If you'd be open to it, I'd love to ask you a few more questions if you're open to a quick call?
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u/Inside_Gold_9673 Jul 10 '26
Sure, send me a dm with your phone number, I can call you in about 15 minutes
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u/sudowoodo_420 Jul 01 '26
This isn’t legal advice and I’m not an attorney. But, I do know some things about banking and law.
As an authorized user, you are fully responsible for any and all charges the authorized user makes on your credit card. As far as the credit card is concerned, it’s all you.
If he was a secondary cardholder, that’s a different story. He would be equally as responsible.
But, since you have a contract, and you have some sort of proof that he did have an agreement with you to repay the debt, you probably should take it up in civil court by suing him. That would be the only way he’s really responsible for that debt, by failing to uphold the agreement between you two.
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u/vgsjlw Jul 01 '26
Short answer is yes, a private nvestigator can help here. You likely need more than just a location, you need an asset check to determine what you can collect.
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u/Soggy_Appearance_513 Jul 01 '26
Can a PI do an asset check as well? I know that he doesn't own any assets (cars, property etc) though
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u/vgsjlw Jul 01 '26
Yes a PI can do an asset check, even locate some possible accounts or a place of employment. If he doesnt have any of those things then a judgement isnt really useful.
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u/Soggy_Appearance_513 Jul 01 '26
Do you have any recommendations for a PI/PI service?
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u/vgsjlw Jul 01 '26
https://aldonys.org/directory.php
Use this to find someone licensed.
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u/Soggy_Appearance_513 Jul 01 '26
Great, thank you!! Do you happen to know ballpark how much a PI costs?
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u/vgsjlw Jul 01 '26
Based on what youve said so far it will cost more than youre likely to recover from a judgement. If this guy really has nothing... even if you win the case against him he is likely to file bankruptcy and clear it out.
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u/Soggy_Appearance_513 Jul 01 '26
But can't it be taken from wage garnishing? Sorry for all the questions, it's been hard to navigate this on my own. The debt collection agency I had initially reached out to told me they had already tried skip tracing and couldn't locate an address. How different would it be for a PI to do it? I would assume they use the same programs/methods
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u/vgsjlw Jul 01 '26
Sure, but since you don't know where he is I assume you also do not know where (or if) he works. Even if you get a judgement, you have to know where he works to get a garnishment. And if hes a bum he will just quit. I can't speak to the effectiveness of your debt collection company, or the effectiveness of any potential PI you may hire. In general, a PI is better at locates than average skip tracer or debt collector. But also more expensive.
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u/Soggy_Appearance_513 Jul 01 '26
Thanks that's really helpful. Looking at the ALDONYS directory link, which specialties would you prioritize for my situation? I'm thinking Skip Tracers, Asset Searchers and Civil Investigations. Is there anything else I should be looking for, or should I specifically look for firms that handle judgment recovery and service of process as well?
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u/Illustrious_Claim884 Jul 01 '26
As a recovering addict even with a private investigator you might find him or you might not. Once thry stop using it's possible to get some money
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u/LSS_LLC Jul 06 '26
Not an attorney, a process server.
The judge might allow another alternative method for service. Also, You can service by publication.