Commercial Accounts Placed for Collection Continue to Decline

Account placement is the primary source of revenue for commercial collection agencies.  For the second year in a row, account placement continues to decline, according to the Commercial Collection Agency Association (CCAA) of the Commercial Law League of America.

The CCAA reports that in 2011, commercial (B2B) accounts placed with its members declined significantly.  The dollars placed for collection fell by approximately 15.2% and the numbers of those accounts declined by approximately 19.5%.  In 2010, the number of accounts place declined by 20.4% and the dollars placed fell by 17.5%.

Annette Waggoner, Executive Director of the CCAA, said, “The slow recovery in the general economy has impacted sales, accounts receivable, and delinquencies.  While accounts receivable portfolios have not significantly expanded in the last year, neither have delinquencies.”

CCAA members also reported a “softening” of the collectability of the accounts placed for collection in fourth quarter 2011, but by all measures collectability has remained fairly steady during 2011,

Waggoner further stated, “Many CCAA members continue to look at ways to improve efficiency given declining account placement volumes.”

The Commercial Collection Agency Association (CCAA) is an association of 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.

Members of the CCAA subscribe to a strict Code of Ethics and undergo an intensive and continuing certification process.