Commercial Collection Agency Association Releases Q2 Account Placement Data

Cedar Grove, NJ – The Commercial Collection Agency Association announces the release of account placement data by member companies for the second quarter of this year.

The dollar amount of accounts placed for collection with CCAA members declined by about 13.6 % when compared to the first quarter of 2005. This largely reflects the seasonal nature of account placement.

When the second quarter results are compared to the same quarter in 2004, we get a mixed message.

The number of accounts placed for collection rose by 12.5%. However, the dollar amount of accounts placed for collection declined by 9.2%. In short, more accounts were placed for collection but the average dollar value of those accounts declined by approximately 19%. For example, accounts under $1,000 represented approximately 54.3% of placements in the second quarter of 2004. In the second quarter of 2005, they represented approximately 70.2%. These smaller dollar sized accounts largely reflect placements from telecommunications, media, and overnight delivery companies.

Approximately 41.5% of CCAA members reported an increase in the dollar amount of accounts placed for collection and 58.5% reported a decline in the dollars placed for collection.

On an annual basis, twelve months ending June 2005 vs. twelve months ending June 2004, the number of accounts placed for collection increased by approximately 11.7% and the dollar volume by a modest 3.5%. The decline in the average size account of 7.4% reflects the increase in the placement of smaller dollar sized accounts.

About CCAA
The Commercial Collection Agency Association (CCAA), with over 110 member agencies, represents the most prestigious commercial collection agencies in the United States. The CCAA works to elevate the standards of the commercial collections industry by providing educational, legislative, promotional and administrative services to its members.