Delinquent account placement on rise

NZ Blacklist www.nzblacklist.co.nz Online debt collection solutions

Members of the Commercial Collection Agency Association of the Commercial Law League of America reported that for the twelve months ending in September 2009 compared to the same period in 2008, account placement rose by about twenty-eight (28) percent, reaching $17,286,448,679 in the dollars placed for collection.

Emil Hartleb, Executive Director of CCAA stated, “This is a record account placement but there are signs on the horizon that indicate that the delinquency situation with trade receivables might be stabilizing. The gain in account placement for the third quarter of 2009, compared to the third quarter in 2008, was about 12%. This is still a strong showing but significantly less than the gains registered in the fourth quarter of 2008 and the first and second quarters of 2009 compared to the same quarters in the previous year.” Those quarterly gains were: Fourth Quarter 2008 – 25.4%, First Quarter 2009 – 38.4% and Second Quarter 2009 – 39.5%.

Hartleb further stated, “The third quarter of 2009 when compared to second quarter of 2009 showed a decline in placement of about eleven (11) percent. This reflects to a certain degree the seasonality of the data but it also reflects, we believe, stabilization in the past-due accounts that many companies were carrying in their accounts receivable portfolios. Much of these delinquencies have been placed for collection or payment plans have been negotiated with them. This coupled with a lackluster sales environment for many companies makes a continuation of future very strong account placement questionable.”

Debt Collection, Debt Collectors, Commercial Debt, Bad Debt Recovery, Commercial Debt recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services