1. Two different questions
| Skip trace | Background check | |
|---|---|---|
| Question | How can I reach this person? | What is in this person’s history? |
| Output | Phone numbers, emails, mailing addresses | Credit, criminal, rental or employment history |
| Starting point | A name and an address you already have, such as a property owner of record | An applicant who has applied for a job, a lease or credit |
| Federal law to read | Contact rules, such as 47 U.S.C. 227 and 47 CFR 64.1200 | The Fair Credit Reporting Act |
2. When a background check is a consumer report
The FTC says that employment background checks “also are known as consumer reports,” and that when you use consumer reports to make employment decisions, including hiring, retention, promotion or reassignment, you must comply with the Fair Credit Reporting Act. For housing, the FTC says tenant background check reports are consumer reports, and that landlords using them to make tenant decisions must comply with the FCRA.
15 U.S.C. 1681b lists permissible purposes for furnishing a consumer report. The FTC guidance for employers describes a stand-alone written notice, written permission, certification to the reporting company, a notice with a copy of the report and a summary of rights before an adverse employment action, and an adverse action notice after. The landlord guidance says the landlord must certify that the report will be used only for housing purposes, and must give an adverse action notice when a consumer report influences a tenant decision.
3. Why a skip trace is not a background check
- Use a skip trace to reach an owner of record about a property you have a reason to contact, such as an offer on a vacant parcel or a surplus funds case.
- Do not use a skip trace result to screen a tenant, hire or reject an applicant, or decide on credit or insurance. Those decisions go through a consumer reporting agency under the FCRA.
- A skip trace match is a lead, not an identity finding. The guide to what a skip trace match proves explains what to check before you contact anyone.
4. Data rules that apply to both
Some sources behind people data have their own federal limits. The Driver’s Privacy Protection Act, 18 U.S.C. 2721(b), lists the purposes for which personal information from motor vehicle records may be disclosed. The Gramm-Leach-Bliley Act, 15 U.S.C. 6802, limits how financial institutions disclose nonpublic personal information. The skip tracing laws guide walks through these and the contact rules.
5. Where Locate Next fits
Locate Next is skip tracing software for real estate teams. The live home page says: “Upload your list, see the maximum cost first, and export only the people you choose.” The security page says not to use results to decide anyone’s credit, insurance, employment or housing. The search starts from the owner names on your list. See bulk skip tracing for the workflow.
Common questions
Is a skip trace the same as a background check?
No. A skip trace looks for current contact details for someone you have a reason to reach. A background check reviews history, and when used for an employment, housing, credit or insurance decision it is a consumer report under the FCRA.
Can I use a skip trace to screen tenants?
No. The FTC says tenant background check reports are consumer reports, and landlords using them for tenant decisions must comply with the FCRA. Use a consumer reporting agency for screening.
Does the FCRA apply to skip tracing?
The FCRA applies to consumer reports and how they are used. 15 U.S.C. 1681b lists the permissible purposes. If you use information to decide on a job, a lease, credit or insurance, read the FCRA and the FTC guidance first.
What does a skip trace return?
Contact candidates, such as phone numbers, emails and mailing addresses, for people found in connection with a name and address. Each one needs review before outreach.
Is Locate Next a background check service?
No. The security page says not to use results to decide anyone’s credit, insurance, employment or housing. Searches start from the owner names on your list.
Sources
- FTC, using consumer reports: what employers need to know. Checked October 22, 2026.
- FTC, using consumer reports: what landlords need to know. Checked October 22, 2026.
- 15 U.S.C. 1681b, permissible purposes of consumer reports. Checked October 22, 2026.
- FTC, Fair Credit Reporting Act. Checked October 22, 2026.
- 18 U.S.C. 2721, Driver's Privacy Protection Act. Checked October 22, 2026.
- 15 U.S.C. 6802, Gramm-Leach-Bliley Act. Checked October 22, 2026.
This page is general information, not legal advice.