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Account placement rose by approximately 28% for the 12 months ending in September, compared with the same period a year ago, according to members of the Commercial Collection Agency Association of the Commercial Law League of America. More than $17.3 billion was placed for collection.
"This is a record account placement but there are signs on the horizon that indicate that the delinquency situation with trade receivables might be stabilizing," Emil Hartleb, CCAA's executive director, said of the yearlong results.
Account placement in the third quarter increased approximately 12%, compared with the same period a year ago, according to Hartleb.
"This is still a strong showing but significantly less than the gains registered in the fourth quarter of 2008 and the first and second quarters of 2009 compared to the same quarters in the previous year," he said. A 25.4% gain was reported in Q408, 38.4% in Q109 and 39.5% in Q209.
The decline in placements between the second and third quarters of this year reflect, to a degree, seasonality, Hartleb said, but it also reflects stabilization in the past-due accounts that many companies were carrying in their accounts receivable portfolios.
"Much of these delinquencies have been placed for collection or payment plans have been negotiated with them," Hartleb said. "This coupled with a lackluster sales environment for many companies makes a continuation of future very strong account placement questionable."
