The American Collector's Association (ACA) is our trade association. News continues to point to lower recovery percentages for businesses across the nation and the Southeast. It is important that we, as your agency, help you to capture every dollar as credit tightens even more and consumers become more sensitive to abusive collection tactics. The ACA just sent us the following information:
"Job losses continued taking their toll on consumer finances during the fourth quarter of 2008, as evidenced by rising delinquencies in almost every loan category. The U.S. economy lost nearly three million jobs in 2008, with nearly two million of them occurring in the fourth quarter.
The Consumer Credit Delinquency Bulletin reported the composite ratio, which tracks eight closed-end installment loan categories, rose 32 basis points to a record 3.22 percent of all accounts. The bulletin is published by the American Bankers Association.
According to the bulletin, home equity loan delinquencies rose 40 basis points to 3.03 percent of accounts, setting a new record. Home equity lines of credit delinquencies also reached a new record, rising 31 basis points to 1.46 percent. Every category saw rising delinquencies except mobile home loans. The report defines a delinquency as a late payment 30 days or more overdue.
Credit card delinquencies also increased from 4.20 percent to 4.52 percent, but still remain near the four year average of 4.47 percent. This is likely due to the ability of card holders to adjust their monthly payments, unlike other loans with fixed payments.
The composite ratio is made up of eight closed-end installment loan categories: home equity, property improvement, indirect auto, direct auto, marine, RV, mobile home and personal. All figures are seasonally adjusted based upon the number of accounts."
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