Commercial Collection Agency Placements up 32%, Reports Commercial Collections Agencies of America

In the fourth quarter of 2015, commercial (business to business) accounts placed with Commercial Collection Agencies of America agency members increased a substantial 32.4% over third quarter 2015, according to the Commercial Collections Agencies of America’s fourth quarter and year-end report. The dollar amount of accounts placed rose by over 6.5%. The average-sized account placed for collection in 2015 ranged from just above $2,400 to slightly above $3,100.

“The increase is not surprising, as the third quarter usually registers the lowest placement figures of the year, while fourth quarter placements increase to accommodate year-end bad debt write-off policies,” reports Commercial Collections Agencies of America Executive Director Annette M. Waggoner.

The expanded study also provided an analysis for the pre-recession period through current day. At the outset of the recessionary period, 2007-2008, agencies reported an increase in the number of accounts placed and the dollar amount of accounts placed, followed by a sharp dip from 2010-2013 for both indices. In 2014 and 2015, there were slight increases in both.

“If we look back on the state of economy over the last year, the modest increases in number of accounts placed and dollar amount of accounts placed are simply explained: the slow pace of the economic rebound exacerbated by the weakness of the manufacturing sector, Waggoner adds. “We recognize that the current economic environment has an impact on sales, accounts receivable and delinquencies and not until we see a significant expansion in accounts receivable portfolios will we see notable increases in account placements.”