Hopes Senate will quickly follow suit upon their return

Columbia, Maryland: October 31, 2011-The National Association of Credit Management (NACM) applauded the House of Representatives last week, after their approval of H.R. 674, a bill that would finally repeal the 3% withholding tax.

In a bipartisan landslide, the House voted 405-16 in favor of repeal. NACM hopes that the Senate quickly follows suit when they return from recess today.

"The House's repeal of the 3% withholding requirement is a step in the right direction for America's trade creditors and small businesses," said NACM President Robin Schauseil, CAE. "The Senate should recognize the dangers that the 3% tax poses to the nation's continuing economic recovery, and pass a full repeal as quickly as possible."

Association for trade creditors has long supported sensible venue reform

Columbia, Maryland: September 8, 2011—The National Association of Credit Management (NACM) offered its support to H.R. 2533, the Chapter 11 Bankruptcy Venue Reform Act, introduced in the House of Representatives by Reps. Lamar Smith (R-TX) and John Conyers, Jr. (D-MI).

NACM’s membership is specifically comprised of unsecured trade creditors, many of whom are smaller businesses with limited budgets for travel. It is these smaller firms that stand to benefit greatly from the provisions contained within the Chapter 11 Bankruptcy Venue Reform Act, which seeks to end the practice of “forum shopping,” whereby debtors can file in a district to which they have very little connection, far away from their headquarters or principal place of business. This practice disenfranchises smaller creditors by making it more difficult for them to participate in the filing process, ultimately reducing a trade creditor’s chances of recovering what they’re owed.

Recent Push by Lawmakers for Full Repeal is Welcome News to NACM and Trade Creditors

Columbia, Maryland: September 20, 2011—Following recent developments in the House of Representatives, the National Association of Credit Management (NACM) expressed its hopes that Congress would finally repeal the pending 3% withholding tax. The withholding requirement would be levied on the value of most contracts for goods and services between businesses and federal and state governments, as well as local political subdivisions with contracting expenditures of $100 million or more.

“NACM has opposed this withholding requirement since it was enacted in 2006,” said NACM President Robin Schauseil, CAE. “Hopefully, the encouraging comments made by lawmakers like Rep. Mike Mulvaney (R-SC), who rightly described the tax as ‘job-crushing,’ and House Majority Leader Eric Cantor (R-VA), who has signaled that repeal will be on the House’s agenda this fall, ultimately mean that the end of the 3% withholding tax is near.”

Columbia, Maryland: September 1, 2011 - The National Association of Credit Management (NACM) recently offered its support to H.R. 2533, the Chapter 11 Bankruptcy Venue Reform Act, introduced in the House of Representatives by Reps. Lamar Smith (R-TX) and John Conyers, Jr. (D-MI).

NACM's membership is specifically comprised of unsecured trade creditors, many of whom are smaller businesses with limited budgets for travel. It is these smaller firms that stand to benefit greatly from the provisions contained within the Chapter 11 Bankruptcy Venue Reform Act, which seeks to end the practice of "forum shopping," whereby debtors can file in a district to which they have very little connection, far away from their headquarters or principal place of business. This practice disenfranchises smaller creditors by making it more difficult for them to participate in the filing process, ultimately reducing a trade creditor's chances of recovering what they're owed.

Dollar Amount Beyond Terms and Accounts Placed for Collection Slide Well into Contraction Territory, but Sales Remain Stable and Dollars Collected Actually Improve

Columbia, Maryland: September 1, 2011-The Credit Managers' Index (CMI) for August hasn't been this low in more than a year-falling from July's 53.9 to 52.7-and is now tracking at levels last seen in 2008-2009. "The news this month is not good and comes as no shock to anyone who has been tracking the data coming from all directions," said Chris Kuehl, PhD, economist for the National Association of Credit Management (NACM). If there is any good news, it is that the combined number has not yet fallen below 50, the threshold separating contraction from expansion. But the index of unfavorable factors fell to contractionary levels. The last time the unfavorable index was this low was in the 2009 period when the recession had just started to show signs of easing. The fact that the data was not worse this month than it was is probably worth noting as most of the other indices released in the last few weeks suggested there might have been an even steeper decline.