Sharp Decline In B2B Accounts Placed With Collection Agencies
As another indicator showing the health of the US business economy comes up short, Credit Decisions International, Ltd. (a member of the CCAA & IACC; the nation's two leading organizations of collection professionals) shares data about the current status of commercial collections in today's business environment.
- (1888PressRelease) August 03, 2010 - Elk Grove Village, IL - The latest results of statistics obtained from the Commercial Collection Agency Association in the first quarter of 2010; has reported lower numbers of accounts placed for collection. Members of the association reported a 23% decline in the total dollar amount of commercial claims placed for collection in comparison to the same period in 2009. As a member of the CCAA; Credit Decisions International, Ltd. (Elk Grove Village, IL) participates in the survey along with other prominent agencies throughout the country.
While many would expect collection agencies to be booming in difficult economic times, this is not usually the case. As the recession has dragged on, fewer companies are extending the business community credit (and banks are not lending money) to the extent prior to 2008. As a result, there are less companies with receivables on their books to collect or companies with the lines of credit to borrow against to pay what they owe.
In a another comparison, the CCAA reported that the collectability of accounts placed for collection with the association's membership hit a level of 21% in the second quarter of 2010, which is up from just 5% as reported in the previous quarter. Emil Hartleb of the CCAA said, "These figures reflect the general condition of the US economy which is experiencing a slow recovery from the recession that began in 2008. While wholesale sales and other commercial transactions are improving, they are not improving at a rapid rate. Some economists are concerned that we might be facing a so-called "double dip" recession."
The Commercial Collection Agency Association or CCAA (www.ccaacollect.com) is an association of commercial collection agencies that have been certified by the Commercial Law League of America which was founded in 1895 (www.clla.org). The members represent the leaders in the commercial (or business to business) collection industry and handle about sixty-five percent of the commercial accounts placed for collection in the United States and adhere to a strict code of ethics and undergo an intensive and continuing certification process.
Established in 1985, Credit Decisions, International, Ltd. is a commercial collection agency certified by both the Commercial Law League of America and the International Association of Commercial Collectors (one of only 6 agencies in the country holding certifications from both organizations, being the very first to do so). Focused on offering the best in communication and the highest net return, the CDI team is dedicated to both professionalism and client service. From sensitive early recovery programs to third party collection and customized portfolio projects, CDI tailors its efforts to each client's needs using the integrity of the staff, effectiveness of their effort and the individual attention accorded each client to better serve them across the nation and around the world!
For More Information, Contact:
Mark V. Matz
Credit Decisions International, Ltd.
95 Randall Street
Elk Grove Village, IL 60007
800.922.9688
www.creditdecisions.com
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