Newsletter Q3 2003

 

ACCOUNT PLACEMENT WITH COMMERCIAL AGENCIES DECLINES Is the Economy in a Recovery?

The Commercial Collection Agency Association of the Commercial Law League of America (CCAA) reports that delinquent commercial accounts placed with its members declined in the first quarter of 2003.

Emil Hartleb, Executive Director of CCAA, stated that in the first quarter of 2003, members of CCAA experienced a decline in account placement of approximately 18% in the dollars of accounts placed with them for collection. The numbers of accounts placed for collection also declined, by approximately 13%.

The accounts placed with CCAA members are business to business (B2B) accounts and not consumer accounts.

Mr. Hartleb indicated that this decline in account placement may indicate that the economic cycle has hit bottom or signaling the beginning of a recovery in the U.S. economy. He explained that commercial account placement is largely counter-cyclical in nature, rising when the economy is experiencing a down turn and declining at the bottom of the economic cycle and at the time of an incipient recovery.

Mr. Hartleb cautions, however, that there are still many problems in the business sector of the U.S. economy which may be reflected in some significant specific bankruptcy filings in the coming quarter. He cites the airline industry and telecommunications as being two significant weak spots in the business sector.

The Commercial Collection Agency Association (CCAA) is an association of 106 commercial collection agencies that have been CERTIFIED by the Commercial Law League of America. They represent the leaders in the commercial collection or business to business collection industry, handling about sixty-five percent of the commercial accounts placed for collection. The Commercial Law League of America is the nation's oldest creditors' rights organization, founded in 1895. 

*The information provided in this article is intended as a general guide only. TFC-Twenty-First Century Associates does not make any representation as to the accuracy of the content.  Any person who seeks to initiate enforcement action across state lines (a foreign judgment) should consult legal counsel for full details on the law of a particular state.


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