The Commercial Collection Agency Association (CCAA) reports that its members received a record volume of business-to-business accounts for collection in 2009.
Emil Hartleb, executive director of CCAA, reported that members last year received $17.8 billion face value in accounts placed for collection, an increase of 33.4% from $13.3 billion in 2008.
A jump in placements for the fourth quarter compared to the same quarter in 2008 was particularly strong, gaining more than 48%, Hartleb says. He pointed out that problems in the economy’s business sector have not ended, particularly for small- and medium-sized businesses.
CCAA members receive a quarterly survey on their outlook for account placements and collectability. Hartleb said that in Q4 survey, 70% of CCAA’s members believed that a lackluster economy - marked by high levels of placements and declining collectability - will continue for at least the next six months. This is an increase of approximately 27% from the Q3 survey when 55% of members reported they expected placements would continue to rise; collectability decline.
CCAA is a group of 115 commercial collection agencies certified by the Commercial Law League of America (CLLA). They are involved in commercial collections or business-to-business collections, handling about 65% of the commercial accounts placed for collection in the U.S. CLLA is the nation’s oldest creditors’ rights organization, founded in 1895.