Commercial Collection Agency Association Third Quarter Results

The Commercial Collection Agency Association of the Commercial Law League of America (CCAA) reports that its members experienced a significant increase in accounts placed for collection in the third quarter of 2001.

Emil Hartleb, Executive Director of CCAA, stated that in the third quarter of 2001 accounts placed with members rose by approximately 24.4% when compared to the same quarter in 2000, reaching over $2.8 billion. For the twelve months ending September 30, 2001, accounts placed for collection rose by approximately 19.5% when compared to the twelve months ending September 2000, reaching over $10.5 billion.

When the third quarter is compared to the second quarter of 2001, account placement declined by about 16.5% reflecting the seasonality of the data and the terrorist?s attacks on the World Trade Center of September 11.

Mr. Hartleb indicated that many of the Association members reported during the two weeks following the World Trade Center attacks that placement was slowing because credit grantors where holding back placement assessing the situations with their customers. Subsequent conversations with members indicate that placements have resumed and at a high level.

He indicated that the pattern of rising 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 & collection managers should be increasingly vigilant. Credit professionals should be concerned about marginal slow paying accounts that they have been carrying. In particular, those that show an increased slowness in payment, broken promises of payment, or send an NSF check. Those accounts should be reviewed for placement with a collection agency. Waiting till the company has filed for bankruptcy to place the account with a collection agency is too late! There is nothing an agency or attorney can do to recover the full amount due once bankruptcy has been filed.?

The Commercial Collection Agency Association (CCAA) is an association of 110 commercial collection agencies that have been CERTIFIED by the Commercial Law League of America. They are the leaders in the commercial collection or business-to-business collection industry, handling about seventy-five percent of the commercial accounts placed for collection in the U.S. 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.