NCO Group Inc. said slowing credit card volume led to a net loss at the accounts receivable management company in the second quarter, though it narrowed its loss.
"The second quarter presented many challenges as we began to experience volume reductions from clients as a result of declines in credit card activity and continued weakness in general consumer-spending patterns," Michael J. Barrist, NCO's chairman and chief executive, said last week in a press release.
The $5.2 million loss was 65% narrower than that of last year's second quarter. Revenue fell 6.5%, to $378.6 million.
Net income at its accounts receivable management division fell 16.7%, to $16.5 million.
NCO, of Horsham, Pa., also purchases bad debt, including charged-off credit card debt, from banks, finance companies and retailers. Its debt-buying division reported a net loss of $2.3 million, 87% narrower than its loss a year earlier.
NCO reported 2008 revenue of nearly $1.5 billion, making it the top collection agency in the 2009 industry rankings compiled by Collections & Credit Risk, a SourceMedia Inc. publication.