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.