Although the stereotype of a collector may be “some guy with chains and a cut-off shirt,” Mr. Black said, collectors in India are “very polite, very respectful, and they don’t raise their voice.” He added, “People respond to that.”
Read the full story on Yahoo Finance.
The upward trend in business bankruptcies that began in 2007 has apparently continued through the first quarter of 2008 and looks to worsen as the nation's economy struggles through a recession, according to research and analysis from accounts receivable insurer Euler Hermes ACI.
According to information from the U.S. Bankruptcy Courts, 29 public companies sought either Chapter 7 or Chapter 11 bankruptcy protection between January 1 and March 31, an increase of 81.25% over the first quarter of 2007. Additionally, the size of the bankruptcies has continued to increase as evidenced by the total assets of the filings—in Q1 2007, the 16 public company bankruptcies featured combined assets totaling just over $1 billion; the 29 bankruptcies for Q1 2008 feature combined assets of nearly $10 billion.
The bankruptcy up-tick appears to continue the trend from 2007, when Euler Hermes ACI forecasted that the number of business bankruptcies would escalate by more than 50%. While final Q4 business bankruptcy numbers from the U.S. Bankruptcy Courts have yet to be released, the trend through the first three quarters of the year gave credence to the forecast.
"The escalation in bankruptcies is a direct result of the deterioration in the U.S. economy, which is now in recession," said Euler Hermes ACI Chief Economist Dan North. "Businesses are now facing a serious combination of factors which will almost certainly continue the trend of increased bankruptcies, including skyrocketing energy and commodities prices, plummeting house prices, job loss, a slowing consumer, record foreclosures and delinquencies and tightening credit conditions. Bankruptcies are likely to continue rising for the next year as the economy struggles through the recession."
Source: Euler Hermes ACI
Experian®, a global information services company, today announced that its Credit Risk AdvisorSM product is enabling greater insight into a small business. By incorporating commercial information on the business and consumer information on the business owner, Credit Risk Advisor provides a more complete view into the overall creditworthiness of a small business. This allows credit managers to make small-business risk decisions with greater speed and accuracy.
“In today’s economy, more and more small-business owners are using their personal finances to meet their business obligations,” said Marc Kirshbaum, president of Experian’s Business Information Services. “By bringing together business and business owner information in Credit Risk Advisor, we help our clients improve their bottom-line performance by providing a tool that is significantly more predictive of small-business credit risk than using commercial data alone.”
A joint effort with eCreditTM, Credit Risk Advisor is an end-to-end account and portfolio management tool that integrates eCredit’s credit decisioning technology with Experian’s robust data assets and predictive risk models, including the new addition of Small Business IntelliscoreSM. The service also includes automated workflow functionality and configurable decisioning criteria, enabling users to develop and easily implement a credit policy that identifies areas of risk and opportunity across their entire portfolio.
“Credit professionals are finding it more important than ever to employ resources that help them manage risk among their small-business customers,” said Jim Swift, president and CEO of eCredit. “Credit Risk Advisor is uniquely positioned to fill that need by providing a tool that combines Experian’s blended information and scoring models with eCredit’s proven automation technology, allowing them to analyze more companies and manage the risk of their entire portfolio.”
Contact Teresa Campos at CMA for information on how you can use Experian Credit Risk Advisor - 818-972-5361.
Equifax Inc. (NYSE: EFX) a global leader in information solutions, announced today it has agreed to acquire a 28 percent equity stake in Global Payments Credit Services LLC (GPCS), a leading credit information company in Russia, from Global Payments Europe, s.r.o., a subsidiary of Global Payments Inc. (NYSE:GPN), and Home Credit and Finance Bank of Russia (Home Credit).
Pending regulatory approval, Equifax will re-brand the company and assume responsibility for its operations. Based on meeting certain conditions in the Shareholder Agreement, Equifax will have the ability to acquire up to 50 percent, the current legal limit for any owner.
Equifax's plans for Russia reflect its execution against the company’s stated strategy to expand into the four targeted geographies of India, Russia, China and Mexico, where the company can leverage technology, data assets and analytics to help customers make critical business decisions in growing markets. Equifax today operates in 14 countries in North America, Latin America and Europe, and recently announced its intent to enter India pending regulatory approvals.
Global Payments Europe and Home Credit have operated GPCS as a joint venture since acquiring the company in 2005. Global Payments Europe is the leading provider of cashless payment services for corporate clients in the Czech Republic and also provides services to clients in Central and Eastern Europe and the Russian Federation. Home Credit is the market leader in consumer finance in the Russian Federation and is committed to continue investing in its expansion in Russia by building new regional branches, bringing modern loan products and providing superb service to its customers. It is a subsidiary of Home Credit B.V., a Netherlands based holding company.
“The growth in credit in the Russian economy provides a significant opportunity for Equifax to assist Russian financial institutions seeking a competitive advantage from credit information, analytics and value added services,” said Trey Loughran, Senior Vice President, Corporate Development, for Equifax. “We are thrilled to be working with Global Payments Europe and Home Credit, established leaders in the Russia market with a considerable amount of experience and understanding of the Russian credit economy. We fully expect that the combination of expertise from these established leaders and Equifax will allow Equifax Russia to be the leading provider of credit information solutions in Russia.”
In just three years, GPCS has built a database to include nearly 20 million records on over 14 million individuals from more than 50 data providers under contract. This makes GPCS a leading credit bureau in Russia, according to the Central Catalog of Credit Histories, the regulator of credit bureaus for the Russian Federation. Russia’s thriving economy has resulted in a fast-growing credit market – from mortgages and auto loans to express loans. The Russian household lending market grew 75 percent in 2006 alone, to approximately US$32.5 billion. Retail lending as a percentage of GDP is 8 percent, versus approximately 100 percent in the United States and 50 percent in Germany, indicating a significant potential for future credit growth. Russia’s middle class has expanded considerably as monthly wages have doubled in the last three years and annual economic growth has hovered near 7 percent since 1999. Recent legislation requiring Russian financial institutions to share data with at least one credit bureau has accelerated the credit information market in Russia and has allowed independent credit bureaus like GPCS to develop larger and more accurate data sets.
“We have managed to build a credit bureau with the largest database in Russia in just a few short years,” said Stanislav Coufal, Chairman of the Board for GPCS. “We believe that our strong market position will be reinforced by our new partnership with Equifax. Combining our large, high quality database with Equifax’s technologies should make for a winning combination. We are looking forward to not only solidifying our leading credit bureau position, but also to accelerating its growth.”
Pavel Vyhnalek, the Group Chief Risk Officer for the Home Credit Group commented, “As Russia builds one of the world’s strongest economies, Home Credit as well as other lenders depend on a comprehensive and reliable credit reporting system to meet a skyrocketing appetite of individuals and families to purchase consumer goods and to keep loan portfolios within the targeted risk profile. In order to widen its recent customer base, Home Credit needs to partner with a strong, experienced and flexible provider of reliable credit assessment and customer verification that allows the bank to offer various lending products, including credit cards, across different consumer segments in Russia. As the world’s leading credit reporting company, Equifax brings the necessary products, technologies and experience to build upon the foundation we created.”
Bankruptcy filings in U.S. federal courts rose 38% in calendar year 2007, according to data released by the Administrative Office of the U.S. Courts, Washington, D.C.
The number of bankruptcies filed in 12 months ended Dec. 31, 2007, totaled 850,912, compared with 617,660 bankruptcies filed in calendar year 2006.
Filings rebounded from a 70% drop in 2006, which was the first full 12-month period after the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect.
Filings involving predominantly business debts totaled 28,322 last year, increasing 44% from the 19,695 business filings in 2006. Business filings totaled 39,201 in 2005, the office reports.
Conclusion of the Report:
Through its FDCPA program of enforcement and education, the Commission encourages collectors who comply with the law to continue to do so, and provides strong incentives for those who are not complying to conform their future practices with the dictates of the law. Vigorous federal and state law enforcement in this area is essential to stop those debt collectors who fail to follow the FDCPA.
California prosecutors and retailers are pushing a bill that would legitimize the outsourcing of controversial bad-check restitution programs to private companies and increase fees the firms can charge people who bounce checks.
The measure, which is opposed by consumer groups, is heading toward what promises to be a contentious debate Tuesday before the Assembly Public Safety Committee.
The California District Attorneys Association is sponsoring the bill, AB 2606 by Assemblyman Bill Emmerson, R-Rancho Cucamonga.
Supporters say the bill will ensure the viability of programs that recover millions of dollars for businesses, offer people a way to avoid court, save tax dollars and help prosecutors focus resources on higher priority cases.
Opponents charge the private companies behind the program are little more than debt collectors renting the name of the local district attorney to scare people into participating in programs that charge excessive fees.
Source: The Press Democrat
Nassau Asset Management's Index Shows Medical Repos Also Up, While Printing
and Machine Tool Repos Decreased
Repossessions and liquidations of
tractor-trailer trucks increased 110% in 2007 compared with 2006, according to
Nassau Asset Management's NasTrac Quarterly Index (NQI). In addition,
repossessions and liquidations of construction, printing and machine tool
equipment declined in a year-to-year comparison, while medical equipment
repossessions rose.
"We are seeing a very significant correction in the market," said Nassau President Edward Castagna. "Even in a category such as construction equipment, where the 12-month total showed a decline, repossessions were up significantly in the second half of 2007." However, Castagna also pointed out, "Nassau is still selling equipment because there are still some very vibrant businesses that need equipment, have good credit and still look good on paper. These businesses made conservative financial decisions, maintained focus on their core business values and now flush with equity. They are taking advantage of their position in the current economy."
Trucking Repossessions and Liquidations
Nassau Asset
Management cited several reasons for the 110% increase in truck repossessions
and liquidations. Leading the way is the decline in homebuilding, which affects
a number of peripheral business sectors, most of which utilize trucks. "From the
forest to the saw mill to the construction site, along with the movement of
people in and out of those homes and the delivery of appliances and furniture to
the home, there are trucks involved in every step of the process," Castagna
said. "The rings continue to expand out of the housing epicenter."
In addition, government regulations (including restrictions on travel time), rising fuel costs and competition placed greater financial strain on businesses that utilize trucks. Low interest rates in the past few years and significant sales of the remaining trucks with '06 engines as compared to the less proven '07 versions with tougher emission standards, led to an increase in late model trucks on the market, driving down prices in the used truck market.
Other Repo Trends
Nassau's latest NQI compares the
company's internal repossession and orderly liquidation activity in 2007 with
2006. In addition to reporting on tractor-trailer trucks, the latest NQI
revealed the following trends:
Construction Repos Declined—Repossessions and liquidations of construction equipment dropped by 32% in 2007, as compared to 2006.
Machine Tool Repos Also Declined—Repossessions and liquidations of machine tools declined by 47% in 2007 over 2006.
Medical Repos Increased—Repossessions and liquidations rose in 2007 for medical devices by 121%.
Printing Repos Decreased—Repossessions and liquidations of printing equipment dropped by 23% in 2007 compared to 2006.
Source: Nassau Asset Management
Last year, Terry Harries, Chairman of the CMA Board of Directors, appointed a Bylaws Committee to conduct a thorough review of the CMA Bylaws. Generally, the purpose of the Bylaws, originally adopted in May 1956, is to define the relationship between the Association and our members, and define how the Association is governed and managed to best serve our members. The Bylaws Committee, led by Chairman-Elect Mary Lynn Jordan, spent several months reviewing and suggesting revisions to the Bylaws. At the Board meeting held on January 22, 2008, the Board officially accepted all revisions proposed by the Bylaws Committee.
ARTICLE XVII, Section 1 of the Bylaws states that: Any proposal for the amendment of these Bylaws shall be made in writing by the Board or by members constituting 5% of the total membership ("members at large"), and shall be filed in the office of the Secretary, and shall be published in the official newsletter of the Association for at least two months immediately preceding the meeting at which the same are to be considered by the Board. Notice of such proposed amendment shall be included in the notice of any such meeting.
The revised Bylaws are available here: Download cma_bylaws_revised_Jan08.pdf If you are a member of CMA and you have a question about these Bylaws or you wish to propose further amendments to the Bylaws, please contact Mike Mitchell at mmitchell@creditservices.org and your feedback will be forwarded to the Board for consideration. These revised Bylaws will be republished in March and, in the absence of requests for further consideration, will be brought before the Board for final adoption at the Annual Membership and Installation of Officers and Directors Meeting on April 16, 2008.
Special thanks goes to all the Bylaws Committee Members for their many hours of hard work in service to the Association: Mary Lynn Jordan (Chairman), Projections Unlimited, Roy Stout, Mygrant Glass Company, Deanna Marcroft, CBA, Sierra Select Distributors.
--- Mike Mitchell, President
Quarterly Study Finds Business Growth Primary Factor Driving Hiring
MENLO PARK, CA -- Chief financial officers (CFOs) expect hiring activity in accounting and finance to continue growing in the second quarter, although at a more moderate pace, according to the Robert Half International Financial Hiring Index. Nine percent of CFOs interviewed said they plan to add full-time professionals and 5 percent anticipate staff reductions. The net 4 percent increase is down two points from the first-quarter forecast. The majority of respondents, 85 percent, anticipate no change in personnel levels.
Of those executives expecting to hire, approximately two in five (41 percent) attributed the demand to business growth, up 11 points from the first-quarter Financial Hiring Index. Rising workloads was cited as the primary reason by 34 percent of respondents.
The Financial Hiring Index is based on telephone interviews with more than 1,400 CFOs across the United States. It was conducted by an independent research firm and developed by Robert Half International, the world’s first and largest staffing services firm specializing in accounting and finance. Robert Half has been tracking financial hiring activity in the United States since 1992.
“Businesses seek financial professionals for general accounting, internal controls and compliance initiatives, among others,” said Max Messmer, chairman and CEO of Robert Half International. “Sustained hiring in accounting and finance over the past several years has resulted in an increasingly shallow talent pool, and many employers continue to struggle to find professionals with the requisite skills.”
Accounting and Financial Hiring -- By Region
CFOs in the South Atlantic1 states are most optimistic about hiring in the second quarter. Fourteen percent of financial executives expect to add accounting and finance employees and 1 percent anticipate reducing personnel levels, a net 13 percent increase in hiring activity.
“The employment market for accountants in the South Atlantic region is competitive, and, as a result, firms are finding they must move quickly to hire promising job candidates,” Messmer said. “Organizations are looking for professionals who possess the functional abilities to do their jobs as well as strong interpersonal skills.”
Hiring also is forecast to outpace the national average in the New England2 and West South Central3 regions, where a net 7 percent and a net 5 percent of CFOs, respectively, said they expect to add accounting staff.
Robert Half has conducted additional CFO interviews in more than 40 major metropolitan areas to provide snapshots of financial hiring trends in these markets. The local results are available at www.roberthalf.com/PressRoom.
Accounting and Financial Hiring -- By Industry
The business services sector is expected to see the most active hiring during the second quarter. Fourteen percent of CFOs anticipate hiring financial professionals, compared to 4 percent who foresee cutbacks, a net 10 percent increase in hiring activity.
Above-average financial hiring also is expected among construction companies. A net 7 percent of executives said they plan to add personnel in the second quarter of 2008.
About the Robert Half International Financial Hiring
Index
First published in 1992, the Robert Half International
Financial Hiring Index was conducted by an independent research firm and is
based on more than 1,400 telephone interviews with CFOs from a random sample of
U.S. companies with 20 or more employees. For the study to be statistically
representative and ensure that businesses from all segments were represented,
the sample was stratified by geographic region and employee size. The results
were then weighted to reflect the proper proportions of employee size within
each region.
About Robert Half International
Robert Half International
was founded in 1948 and is traded on the New York Stock Exchange. Its financial
staffing divisions include Accountemps, Robert Half Finance & Accounting and
Robert Half Management Resources, for temporary, full-time and senior-level
project professionals, respectively. The company has more than 360 staffing
locations worldwide and offers online job search services on its divisional
websites, all of which can be accessed at www.rhi.com.
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