ARM Index Shows Continuing Erosion of Collection Environment

An index of the economic forces driving the accounts receivable management industry shows a continuing slide in the collectability of consumer debts that has been taking place since late 2006.

The Kaulkin Ginsberg Index (KGI), compiled by ARM industry consulting and advisory firm Kaulkin Ginsberg Company (KGC), slipped 1 percent in the first quarter of 2008 when compared to the fourth quarter of 2007 and 8 percent from Q1 2007. Overall, the KGI is down 16 percent from its high in October 2006.

The KGI is a composite of seven macroeconomic factors that directly impact the ARM industry. The Index provides an overview of the economic environment in which ARM companies do business without addressing the financial or operational results of companies in the industry, according to Paul Legrady, director of KGC.

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