The Commercial Collection Agency Association of the Commercial Law League of America (CCAA) reports that its members received a record-breaking volume of commercial (business-to-business) accounts placed for collection in 2001.
Emil Hartleb, Executive Director of CCAA, stated that in the year 2002, its members received over $11.5 billion in business-to-business accounts placed for collection. This represented an increase over the year 2000 of about thirty-one percent.
The fourth quarter of 2001 was particularly strong, with accounts placed increasing by over forty-three percent, from $2.3 billion in the fourth quarter of 2000 to over $3.3 billion in the fourth quarter of 2001.
Mr. Hartleb indicated that the increase in account placement is a reflection of the weak economy. Many businesses are experiencing a cash flow crunch and unable to meet their obligations in a timely manner.
He went on to state, ?This is a time when credit and collection executives should be increasingly vigilant. An increase in business bankruptcies has begun as a result of the recessionary economy. Credit professional should be concerned about the marginal slow paying accounts they have been carrying. In particular, those that show an increasing slowness in making payments, repeated broken promises of payment, or send an NSF check. Such accounts should be reviewed for placement with a collection agency. Waiting till a company has filed for bankruptcy to place the account with a collection agency is too late!
The Commercial Collection Agency Association (CCAA) is an association of 115 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 eighty 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. For more information on CCAA, the certification process and its members, go to the Website: www.ccaacollect.com or call Emil Hartleb at (973) 239-0721.
