What is a tracing agent?

Retirement funds may appoint a tracing agent to locate you if your physical address or contact details are unknown in order that they can pay out unclaimed benefits.

These same tracing agents are also engaged to find people for other reasons, such as when you default on debt.

Tracing agents employ advanced tools and methodologies to analyse data, understand human behaviour and interpret legal documents in order to locate those they are trying to find.

Retirement funds make use of tracing agents because they offer a specialised service which can save the fund time and money.

When would a tracing agent be appointed?

The organisations or entities who may appoint a tracing agent include:

• Retirement fund administrators who need to find beneficiaries for unclaimed benefits; 
  
  
• Financial institutions or debt collectors who want to locate a person who owes money and has changed their contact details;
  
  
• Legal professionals seeking witnesses, respondents, or defendants so they can serve legal documents, or heirs, so that they can finalise estates;
  
  
• Private individuals searching for a missing relative or person;

• Property managers who need to find tenants that have absconded and owe rent or have damaged or abandoned a property.
  
  

How do tracing agents get paid?

The payment a tracing agent earns depends on the type of tracing that is required.

For unclaimed retirement fund benefits, a tracing fee is deducted from the amount due to the beneficiary and paid to the tracing agent before the funds are paid out.

In the case of debt collection, a tracing agent is usually paid a percentage of the recovered funds, although tracing agents who work for large credit bureaus may work on a monthly retainer basis.

Tracing agents employed to locate witnesses or find lost family members will charge a flat fee or hourly rate.

How do I know if a tracing agent is legitimate?

Tracing agents need to collect personal information from you, so you want to be sure they are legitimate and not collecting your details to scam you before you hand over that information.

There are several methods you can use to verify the legitimacy of a tracing agent who contacts you:

Do an internet search to find the tracing agent’s company;

Request a letter from the fund or company that employed them;

The tracing agent should know some information about you, such as your name or account number, and should include this in the SMS or email they send you. If you receive an SMS with none of your personal information or an email from a Gmail account, it may be fake;

If a tracing agent calls you, request their number so you can call them back. If they are legitimate, they’ll share the number and you should be able to check their number matches their business website;

If you are being traced for unclaimed benefits, ask the tracing agent for the name of the retirement fund or sponsoring employer that is trying to trace you. If you or a relative did not save in that fund or have not worked for that employer, you won’t be owed any benefits and the contact with you is likely an exercise to collect your information for fraudulent purposes. Be aware, however, that some funds have changed their names;

If you or your relative worked at the employer provided by the tracing agent, contact the HR department to determine whether the retirement fund is tracing beneficiaries. Alternatively, contact the retirement fund directly by looking up their details on the FSCA website, which also contains an unclaimed benefits section;

If you are approached by a tracing agent for debt collection, ask them for proof of registration with the Council for Debt Collectors (CFDC), or you can contact the CFDC at info@cfdc.org.za or call (012) 804 9808.

Do not fill out any forms or provide any information until you are certain that you’re dealing with a legitimate tracing agent.

What documents should I provide to a tracing agent?

If you are being traced for unclaimed retirement fund benefits or an unpaid inheritance, the tracing agency will need to authenticate your identity before the funds can be paid out.

The tracing agent will ask you for:

• An identity verification form, along with a certified copy of your ID or passport;
  
  
• A claim application form;
  
  
• A bank confirmation letter;
  
  
• A beneficiary / next of kin form if your payout relates to a deceased estate, along with forms confirming your relationship (eg, a birth certificate);
  
  
• Proof of employment to verify your identity and make sure the funds are paid to the correct person. If you don’t have a payslip, you can use bank statements showing salary deposits, or UIF or tax records. If you work in the informal sector and can’t access any formal documentation, an affidavit is also acceptable.

If you are being traced for debts you owe, you may be requested to provide proof of identity. The tracer will verify your address and may ask for proof of employment.

If you are not comfortable giving personal documents, such as your bank statements, to the tracing agent, ask them for the contact details of the organisation that is looking for you and send the documents directly to them.

This article was written by Sylvia Walker, a financial planner and freelance finance writer and author. It was reviewed by Rosemary Hunter, a pension lawyer at Fasken Attorneys and a former deputy executive officer responsible for the regulation of retirement funds at the Financial Services Board.