SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C. 20549-1004

                               ------------------


                                    FORM 10-Q

                               ------------------


           |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2000

                                       OR

          |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

                         SECURITIES EXCHANGE ACT OF 1934

                               ------------------


                         Commission file number 0-13497

                         PITNEY BOWES CREDIT CORPORATION

           Incorporated pursuant to the Laws of the State of Delaware


                               ------------------


       Internal Revenue Service -- Employer Identification No. 06-0946476

                   27 Waterview Drive, Shelton, CT 06484-4361

                                 (203) 922-4000

                               ------------------


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No |_|

As of October 31, 2000, 460 shares of common stock, no par value,  with a stated
value of $100,000 per share, were outstanding, all of which were owned by Pitney
Bowes Inc., the parent of the Registrant.

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS  THEREFORE  FILING  THIS FORM  WITH THE  REDUCED  DISCLOSURE
FORMAT.





<PAGE>



                         PITNEY BOWES CREDIT CORPORATION

            Part I -- FINANCIAL INFORMATION

<TABLE>
<S>                                                                                                             <C>
                ITEM 1.-- FINANCIAL STATEMENTS
                    Consolidated Statements of Income:
                      Three and Nine Months Ended September 30, 2000 and 1999.............................        3
                    Consolidated Balance Sheets:
                      At September 30, 2000 and December 31, 1999.........................................        4
                    Consolidated Statements of Cash Flow:
                      Nine Months Ended September 30, 2000 and 1999.......................................        5
                    Notes to Consolidated Financial Statements............................................        6

                ITEM 2. -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF

                    FINANCIAL CONDITION AND RESULTS OF OPERATIONS.........................................       10


            Part II -- OTHER INFORMATION

                ITEM 1.-- LEGAL PROCEEDINGS...............................................................       14

                ITEM 6.-- EXHIBITS AND REPORTS ON FORM 8-K................................................       14

                SignatureS................................................................................       15


                Exhibit (i)-- Computation of Ratio of Earnings from Continuing
                    Operations to Fixed Charges...........................................................       16
                Exhibit (ii)-- Financial Data Schedule....................................................       17


</TABLE>


<PAGE>



                         Part I -- FINANCIAL INFORMATION

                         ITEM 1. -- FINANCIAL STATEMENTS

                         PITNEY BOWES CREDIT CORPORATION

                        CONSOLIDATED STATEMENTS OF INCOME

                                   (unaudited)

                            (in thousands of dollars)

<TABLE>
                                                                  Three Months Ended September 30,  Nine Months Ended September 30,
                                                                   -------------------------------   -------------------------------

                                                                              2000            1999             2000           1999
                                                                              ----            ----             ----           ----
Revenue:
<S>                                                                      <C>             <C>              <C>            <C>
  Finance income...............................................          $ 142,437       $ 140,119        $ 434,707      $ 417,197
                                                                           -------         -------          -------        -------


Expenses:
  Selling, general and administrative..........................             26,874          29,833           84,919         89,214
  Interest, net................................................             28,303          26,606           88,768         91,167
  Provision for credit losses..................................              9,208           8,030           41,513         28,043
  Depreciation and amortization................................              3,451           7,427           12,049         22,309
                                                                           -------          -------          -------        -------

    Total expenses.............................................             67,836          71,896           227,249        230,733
                                                                           -------          -------          -------        -------
------

Income from continuing operations before income taxes..........             74,601          68,223           207,458        186,464
Provision for income taxes.....................................             19,947          14,783            55,993         49,475
                                                                           -------          -------          -------        -------
-------

Income from continuing operations..............................             54,654          53,440           151,465        136,989

Discontinued operations:
  Income from discontinued operations, net of taxes of $177....                  -               -                 -            971
  Loss on disposal of discontinued operations, net of tax
    benefits of $17,062........................................                  -               -                 -        (24,938)
                                                                           -------          -------          -------        -------
-------

Net income.....................................................         $   54,654      $   53,440        $  151,465     $  113,022
                                                                           =======         =======          ========       ========
Ratio of earnings from continuing
   operations to fixed charges.................................              3.63X           3.55X             3.33X          3.04X
                                                                           =======         =======           =======        =======

</TABLE>



                 See Notes to Consolidated Financial Statements


<PAGE>



                         PITNEY BOWES CREDIT CORPORATION

                           CONSOLIDATED BALANCE SHEETS

                                   (unaudited)

                            (in thousands of dollars)
<TABLE>

                                                                                September 30,     December 31,

                                                                                    2000              1999
                                                                                 ---------          ---------
ASSETS

<S>                                                                           <C>             <C>
Cash and cash equivalents............................................         $     166,938   $       132,914

Investments:
  Finance assets.....................................................             2,781,408         2,984,246
  Investment in leveraged leases.....................................               958,559           850,000
  Investment in operating leases, net of accumulated depreciation....                39,996            45,607
  Allowance for credit losses........................................               (71,530)          (80,655)
                                                                                  ---------         ---------

    Net investments..................................................             3,708,433         3,799,198
                                                                                  ---------         ---------

Assets held for sale.................................................               302,600           342,934
Investment in partnership............................................               166,477           167,071
Loans and advances to affiliates.....................................               968,450           362,012
Net assets of discontinued operations................................                     -           491,763
Other assets.........................................................               112,547            87,084
                                                                                  ---------         ---------

       Total assets..................................................          $  5,425,445      $  5,382,976
                                                                                  =========         =========

LIABILITIES

Senior notes payable due within one year.............................          $    831,010      $  1,044,573
Short-term notes payable to affiliates...............................                76,680            37,000
Accounts payable to affiliates.......................................               208,802           227,503
Accounts payable and accrued liabilities.............................               320,587           283,361
Deferred taxes.......................................................               602,896           526,838
Senior notes payable due after one year..............................             1,407,254         1,332,000
Long-term notes payable to affiliates................................               296,000           333,000
Subordinated notes payable...........................................               299,892           299,892
                                                                                  ---------         ---------

     Total liabilities...............................................             4,043,121         4,084,167
                                                                                  ---------         ---------

STOCKHOLDER'S EQUITY

Common stock.........................................................                46,000            46,000
Capital surplus......................................................               341,725            41,725
Retained earnings....................................................               994,599         1,211,084
                                                                                  ---------         ---------

     Total stockholder's equity......................................             1,382,324         1,298,809
                                                                                  ---------         ---------

       Total liabilities and stockholder's equity....................          $  5,425,445      $  5,382,976
                                                                                  =========         =========

</TABLE>






                 See Notes to Consolidated Financial Statements


<PAGE>


                         PITNEY BOWES CREDIT CORPORATION

                      CONSOLIDATED STATEMENTS OF CASH FLOW

                                   (unaudited)

                            (in thousands of dollars)

<TABLE>
                                                                              Nine Months Ended September 30,
                                                                              ------------------------------

                                                                                      2000              1999
                                                                                      ----              ----
OPERATING ACTIVITIES

<S>                                                                             <C>               <C>
Income from continuing operations, net of taxes............................     $   151,465       $  136,989
Income from discontinued operations, net of taxes..........................               -              971
Loss on disposal of discontinued operations, net of tax benefits...........              -           (24,938)
Adjustments to reconcile net income to cash provided by
 operating activities:
  Provision for credit losses..............................................         41,513            28,043
  Depreciation and amortization............................................         12,049            65,345
  Increase in other assets.................................................         (2,374)          (14,439)
  Decrease in discontinued other assets....................................              -            80,885
  Decrease in accounts payable to affiliates...............................        (18,701)          (78,330)
  Increase in accounts payable and accrued liabilities.....................         37,226            95,623
Other, net.................................................................        (15,520)           (4,398)
                                                                                  ---------        ---------

Net cash provided by operating activities..................................        281,716           350,143
                                                                                  ---------        ---------

INVESTING ACTIVITIES

Proceeds and cash receipts from sale of discontinued operations............        512,780                 -
Net proceeds from sale of credit card operations...........................        321,746                 -
Investment in net finance assets...........................................       (549,081)         (550,751)
Investment in leveraged leases.............................................        (81,686)          (63,576)
Investment in operating leases.............................................           (324)             (552)
Investment in assets held for sale.........................................       (390,213)         (290,915)
Cash receipts collected under lease contracts, net of finance
  income recognized........................................................        750,418           613,938
Investment in mortgage service rights......................................              -           (21,800)
Loans and advances to affiliates, net......................................       (606,438)          244,953
Additions to equipment and leasehold improvements..........................         (1,315)           (4,228)
                                                                                  ---------        ---------

Net cash used in investing activities......................................        (44,113)          (72,931)
                                                                                  ---------        ---------

FINANCING ACTIVITIES

Change in commercial paper borrowings, net.................................        325,525            20,825
Change in other short-term debt, net.......................................       (516,102)          (52,999)
Proceeds from senior notes.................................................        177,268           125,000
Proceeds from short-term loan to affiliate.................................         39,680                 -
Repayment of senior notes..................................................       (125,000)         (200,000)
Repayment of loan from affiliates..........................................        (37,000)         (100,000)
Capital contribution from Pitney Bowes Inc.................................        300,000                 -
Dividends paid to Pitney Bowes Inc.........................................       (367,950)          (63,750)
                                                                                 ---------         ---------

Net cash used in financing activities......................................       (203,579)         (270,924)
                                                                                 ---------         ---------


Increase in cash and cash equivalents......................................         34,024             6,288

Cash and cash equivalents at beginning of period...........................        132,914            19,154
                                                                                  ---------        ---------

Cash and cash equivalents at end of period.................................    $   166,938       $    25,442
                                                                                  =========        =========

Interest paid..............................................................    $   137,528       $   124,692
                                                                                  =========        =========
Income taxes refunded, net.................................................    $   (50,869)      $   (47,486)
                                                                                  =========        =========

                 See Notes to Consolidated Financial Statements

</TABLE>

<PAGE>



                         PITNEY BOWES CREDIT CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (unaudited)

Note 1 -- General

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with the  instructions  to Form 10-Q and do not  include all the
information and footnotes required by generally accepted  accounting  principles
for  complete  financial  statements.  In the  opinion  of Pitney  Bowes  Credit
Corporation  (the  "Company" or "PBCC"),  all  adjustments  (consisting  of only
normal recurring adjustments) necessary to present fairly the financial position
of the Company at September  30, 2000 and December 31, 1999,  and the results of
operations for the three and nine months ended  September 30, 2000 and 1999, and
the cash flows for the nine months ended  September  30, 2000 and 1999 have been
included.  Certain amounts from prior periods have been  reclassified to conform
to current  period  presentation.  Operating  results for the nine months  ended
September  30, 2000 are not  necessarily  indicative  of the results that may be
expected for the year ending December 31, 2000. These statements  should be read
in conjunction  with the financial  statements and notes thereto included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1999.

Note 2 --  Discontinued Operations

On January 14, 2000, the Company sold its mortgage servicing business,  Atlantic
Mortgage & Investment  Corporation  ("AMIC"),  a wholly owned  subsidiary of the
Company to ABN AMRO North  America.  The  Company  received  approximately  $484
million  in  cash  at  closing.  The  transaction  is  subject  to  post-closing
adjustments.

Revenue  of AMIC was  $26.3  million  and $88.8  million  for the three and nine
months ended  September  30,  1999.  Net  interest  expense  allocated to AMIC's
discontinued operations was $0.8 million and $4.5 million for the three and nine
months ended September 30, 1999. Interest has been allocated based on AMIC's net
intercompany   borrowing  levels  charged  at  the  Company's  weighted  average
borrowing  rate,  offset by the  interest  savings the Company  realized  due to
borrowings against AMIC's escrow deposits as opposed to regular commercial paper
borrowings.  On  June  30,  1999,  the  Company  recorded  an  expected  loss of
approximately  $34.2 million (net of taxes of $22.8  million) on the disposal of
AMIC.

In the second quarter of 1999, the Company recorded a gain of approximately $9.3
million (net of taxes of $5.7 million) representing the excess proceeds received
over the book value of the net assets of Colonial  Pacific  Leasing  Corporation
sold to General Electric Capital Corporation, net of related transaction costs.
<TABLE>

                                                                        Nine Months Ended September 30,

                                                                                2000            1999
                                                                                ----            ----
<S>                                                                        <C>             <C>
          Income on AMIC discontinued operations..............             $       -       $     971
          Loss on disposal of AMIC............................                     -         (34,200)
          Gain on sale of CPLC................................                     -           9,262
                                                                            --------         -------
                 Loss from discontinued operations                         $       -       $ (23,967)
                                                                            ========         ========


</TABLE>


Operating  results have been segregated and reported as discontinued  operations
in the Consolidated Statements of Income for the nine months ended September 30,
1999. Net assets of discontinued  operations have been separately  classified in
the  Consolidated  Balance  Sheets at December  31,  1999.  Cash flow impacts of
discontinued  operations have not been segregated in the Consolidated Statements
of Cash Flow for the nine months ended September 30, 1999.


<PAGE>


                         PITNEY BOWES CREDIT CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (unaudited)

Note 3 -- Finance Assets

The composition of the Company's finance assets is as follows:
<TABLE>

                                                                               September 30,     December 31,
           (in thousands of dollars)                                               2000              1999
                                                                                 ---------         ---------

<S>                                                                              <C>              <C>
            Lease finance receivables......................................      $2,851,047       $2,713,358
            Other finance receivables .....................................         267,835          539,499
                                                                                  ---------        ---------

              Total gross finance receivables..............................       3,118,882        3,252,857
            Unguaranteed residual valuation................................         364,727          415,079
                                                                                  ---------        ---------

              Total gross finance assets ..................................       3,483,609        3,667,936
            Initial direct costs deferred..................................          42,651           43,916
            Unearned income................................................        (744,852)        (727,606)
                                                                                  ---------        ---------

              Total finance assets.........................................      $2,781,408       $2,984,246
                                                                                  =========        =========

</TABLE>

Note 4 -- Notes Payable

The composition of the Company's notes payable is as follows:
<TABLE>

                                                                               September 30,     December 31,
         (in thousands of dollars)                                                 2000              1999
                                                                                 ---------         ---------
         Senior Notes Payable:

           Commercial paper at the weighted average
<S>                                                                              <C>              <C>
             interest rate of 6.52% (5.55% in 1999)..........................    $  729,525       $  404,000
           Notes payable against bank lines of credit and others at a
             weighted average interest rate of 1.36% in 1999.................             -          457,255
           Other notes payable at a weighted average interest rate
             of 7.51% (7.50% in 1999)........................................         1,485            8,318
           Current installment of long-term debt due within one year at
              an interest rate of 6.78% (5.95% to 6.11% in 1999).............       100,000          175,000
                                                                                  ---------        ---------

            Total senior notes payable due within one year...................       831,010        1,044,573
            Senior notes payable due after one year at interest rates of
              5.65% to 9.25% in both 2000 and 1999...........................     1,407,254        1,332,000
                                                                                  ---------        ---------

            Total senior notes payable.......................................     2,238,264        2,376,573
                                                                                  ---------        ---------

         Notes Payable to Affiliates:

            Due within one year at an interest rate of 5.38% in 2000 and 1999        76,680           37,000
            Due after one year at an interest rate of 5.38% in 2000 and 1999.       296,000          333,000
                                                                                  ---------        ---------

            Total notes payable to affiliates................................       372,680          370,000
                                                                                  ---------        ---------
         Subordinated Notes Payable:

            Non-interest bearing notes due Pitney Bowes Inc. ("PBI").........       299,892          299,892
                                                                                  ---------        ---------

         Total notes payable.................................................    $2,910,836       $3,046,465
                                                                                  =========        =========
</TABLE>

   Interest expense, net on the income statement is shown net of interest income
   earned on loans made to the Company's parent,  Pitney Bowes Inc, and to other
   affiliates.  Interest  income was $18.8  million  and $41.5 for the three and
   nine months ended  September  30, 2000,  respectively,  and $11.6 million and
   $29.8  million  for the three  and nine  months  ended  September  30,  1999,
   respectively.


<PAGE>


                         PITNEY BOWES CREDIT CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (unaudited)

   Note 4 -- Notes Payable (continued)

   On April 19, 2000,  certain  partnerships  controlled  by  affiliates  of the
   Company issued a total of $134 million of Series A and Series B Secured Fixed
   Rate Senior Notes (the "Notes").  The Notes are due in 2003 and bear interest
   at  7.44  percent.  The  proceeds  from  the  Notes  were  used  to  purchase
   subordinated  debt  obligations  from  PBI  ("PBI   Obligations").   The  PBI
   Obligations  have a principal amount of $134 million and are due in 2010. The
   PBI  Obligations  bear an interest  rate of 8.07  percent for the first three
   years and reset in May 2003 and each  third  anniversary  of the first  reset
   date.

   On March 31, 2000,  PBCC issued $43.3 million of 7.52 percent senior notes to
   various  holders  maturing on January 10, 2012. The proceeds from these notes
   were used to pay down commercial paper.

   In July 1998,  the Company filed a shelf  registration  statement on Form S-3
   with the Securities and Exchange  Commission ("SEC") to offer, in one or more
   series,  its unsecured debt securities at an aggregate initial offering price
   not to exceed $750 million.  As part of this shelf registration  statement in
   August 1999,  PBCC  established a  medium-term  note program for the issuance
   from  time to  time  of up to $500  million  aggregate  principal  amount  of
   Medium-Term  Notes,  Series  D. At  September  30,  2000,  $625  million  was
   available  under the  shelf  registration  including  $375  million  that was
   available under the related medium-term note program.

   Note 5 -- Business Segment Information

   The composition of the Company's  segment revenue and operating  profit is as
follows:
<TABLE>
<S>                                                              <C>            <C>                <C>               <C>
                                                              Three Months Ended September 30,      Nine Months Ended September 30,
                                                                       2000           1999               2000              1999
                                                                       ----           ----               ----              ----
    (in thousands of dollars)
    Revenue:

      Internal Financing Division.............................   $  105,618     $  103,318         $  331,204        $  308,060
      Capital Services Division...............................       36,819         36,801            103,503           109,137
                                                                    -------        -------            -------           -------
           Total revenue......................................   $  142,437     $  140,119         $  434,707        $  417,197
                                                                   ========       ========           ========          ========


    (in thousands of dollars)
    Income from continuing operations
     before income taxes:

       Internal Financing Division............................   $   62,569    $    63,417        $   181,288        $  170,802
       Capital Services Division..............................       12,032          4,806             26,170            15,662
                                                                     ------        -------            -------           -------
           Total income from continuing operations
           before income taxes................................   $   74,601    $    68,223        $   207,458        $  186,464
                                                                   ========       ========           ========         =========

   The Company fully allocates corporate expenses to its individual divisions.

</TABLE>

<PAGE>


                         PITNEY BOWES CREDIT CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (unaudited)

   Note 6 -- Accounting Pronouncements

   In September 2000,  Statement of Financial  Accounting Standards ("SFAS") No.
   140,  "Accounting  for  Transfers  and  Servicing  of  Financial  Assets  and
   Extinguishments   of  Liabilities"  was  issued,   replacing  SFAS  No.  125,
   "Accounting   for   Transfers   and   Servicing  of   Financial   Assets  and
   Extinguishments  of  Liabilities".  SFAS No. 140  revises the  standards  for
   accounting for  securitizations  and other transfers of financial  assets and
   collateral, as well as requiring certain additional disclosures.  However, it
   carries over most of SFAS No. 125's provisions. SFAS No. 140 is effective for
   transfers and servicing of financial assets and extinguishment of liabilities
   occurring after March 31, 2001.  However, it is effective for the recognition
   and  reclassification  of collateral  and for  disclosures  relating to those
   transactions  for the year ending December 31, 2000. The Company is currently
   evaluating the impact, if any, of adopting the statement.

   In June 1998,  SFAS No.  133,  "Accounting  for  Derivative  Instruments  and
   Hedging  Activities",  amended in June 2000 by SFAS No. 138, was issued. SFAS
   No. 133 requires  that an entity  recognize  all  derivative  instruments  as
   either  assets or  liabilities  in the  statement of  financial  position and
   measure those  instruments at fair value.  Changes in the fair value of those
   instruments  will be reflected  as gains or losses.  The  accounting  for the
   gains  or  losses  depends  on the  intended  use of the  derivative  and the
   resulting designation. The Company is currently evaluating the impact of this
   statement.  SFAS No. 133, as amended,  is  effective  January 1, 2001 for the
   Company.

   In December  1999,  the  Securities  and  Exchange  Commission  issued  Staff
   Accounting  Bulletin  ("SAB")  No. 101,  "Revenue  Recognition  in  Financial
   Statements,"  summarizing  guidance in applying generally accepted accounting
   principles  to revenue  recognition  in  financial  statements.  Although the
   Company  believes it is in  compliance  with this  guidance  in all  material
   respects, the Company is currently evaluating its current revenue recognition
   policies  to  determine  the impact,  if any, of SAB No. 101.  SAB No. 101 is
   effective for the fourth quarter of 2000.

   Note 7 -- Other Matters

   As part of a strategic  alliance with U.S. Bank, a division of U.S.  Bancorp,
   on June 30, 2000 PBCC sold its PitneyWorksSM  Business  RewardsSM Visa(R) and
   Business  Visa(R)  card  operations,  including  credit card  receivables  of
   approximately  $322 million.  The Company  expects to earn fees in connection
   with the strategic  alliance  with U.S.  Bank.  However,  the Company will no
   longer  originate  credit  card  receivables  and as a  result  will not earn
   finance income on those balances.  The transaction is subject to post-closing
   adjustments.


<PAGE>


                         PITNEY BOWES CREDIT CORPORATION

                ITEM 2.-- MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Income from continuing  operations for the nine months ending September 30, 2000
increased $14.5 million  (10.6%) to $151.5 million  compared with $137.0 million
for the same period of 1999. The improvement was largely  attributable to growth
in the Company's  internal  financing  segment and higher fee- and service-based
income.

As part of a strategic  alliance with U.S. Bank, a division of U.S. Bancorp,  on
June 30,  2000  PBCC  sold its  PitneyWorksSM  Business  RewardsSM  Visa(R)  and
Business  Visa(R)  card   operations,   including  credit  card  receivables  of
approximately $322 million.  The Company expects to earn fees in connection with
the  strategic  alliance  with U.S.  Bank.  However,  the  Company  is no longer
originating  credit card receivables and as a result will not be earning finance
income  on  those   balances.   The   transaction  is  subject  to  post-closing
adjustments.

Results from Continuing Operations

Finance income from all sources increased $17.5 million (4.2%) to $434.7 million
for the first nine months of 2000  compared  with  $417.2  million for the first
nine  months of 1999.  The net  increase  primarily  reflects a  combination  of
portfolio growth in the internal  financing segment coupled with higher fee- and
service-based revenue from the Company's Small Business Solutions programs.

Selling,  general and  administrative  ("SG&A") expenses  decreased $4.3 million
(4.8%) to $84.9  million for the first nine months of 2000  compared  with $89.2
million for the first nine months of 1999. The decrease  reflects the completion
of the Company's regional consolidation project early in 2000.

Interest  expense,  net decreased  $2.4 million  (2.6%) to $88.8 million for the
first nine months of 2000  compared with $91.2 million for the first nine months
of 1999.  The decrease  reflects  lower average  borrowings  in 2000,  partially
offset  by  higher  interest  rates.  The  effective  interest  rate on  average
borrowings  was 6.73 percent for the first nine months of 2000  compared to 5.61
percent for the first nine months of 1999.  The Company  does not match fund its
financing investments.

The provision for credit losses increased $13.5 million (48.0%) to $41.5 million
for the first nine months of 2000 compared with $28.0 million for the first nine
months of 1999. The increase is mainly due to the high growth experienced in the
Company's Small Business Solutions programs.

Depreciation  of  equipment  under  operating  leases was $3.4  million and $3.7
million for the nine months  ended  September  30, 2000 and 1999,  respectively.
This reflects a lower operating lease  investment  balance at September 30, 2000
compared  with  September  30, 1999.

Provisions  for income taxes on  continuing  operations  were $56.0  million (an
effective tax rate of 27.0%) for the first nine months of 2000 compared to $49.5
million (an effective tax rate of 26.5%) for the first nine months of 1999.

Operating Segments

Revenue and  operating  profit for the Company,  by operating  segment,  for the
three and nine months ended September 30, 2000 and 1999 are summarized below.
<TABLE>
<S>                                                              <C>            <C>               <C>            <C>
                                                           Three Months Ended September 30,  Nine Months Ended September 30,
                                                           -------------------------------   -------------------------------
                                                                       2000           1999              2000           1999
                                                                       ----           ----              ----           ----
(in thousands of dollars)
Revenue:


  Internal Financing Division.................................   $  105,618     $  103,318        $  331,204     $  308,060
  Capital Services Division...................................       36,819         36,801           103,503        109,137
                                                                    -------        -------           -------        -------
       Total revenue..........................................   $  142,437     $  140,119        $  434,707     $  417,197
                                                                   ========       ========          ========       ========


(in thousands of dollars)
Income from continuing operations
   before income taxes:

  Internal Financing Division.................................   $   62,569    $    63,417       $   181,288     $  170,802
  Capital Services Division...................................       12,032          4,806            26,170         15,662
                                                                     ------        -------           -------        -------
       Total income from continuing operations
       before income taxes....................................   $   74,601    $    68,223       $   207,458    $   186,464
                                                                   ========      =========         =========      =========

</TABLE>


<PAGE>


                         PITNEY BOWES CREDIT CORPORATION

                ITEM 2.-- MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Operating Segments (continued)

Internal  financing  revenue  increased  7.5 percent and income from  continuing
operations  before income taxes  increased 6.1 percent for the first nine months
of 2000  compared to the first nine months of 1999.  The increase in revenue was
mainly  due  to  higher  earning  asset  levels  and  higher   fee-based  income
attributable to Small Business Solutions  programs.  Operating profit growth was
slower than revenue  growth due to higher credit loss  provisions to support the
growth in Small Business Solutions programs.

Capital services  financing revenue decreased 5.2 percent while operating profit
increased  67.1 percent for the first nine months of 2000  compared to the first
nine months of 1999.  The  decrease in revenue  reflects the  Company's  ongoing
effort  to  reduce  reliance  on  investment  levels  in  the  capital  services
portfolio. This was offset by reduced interest and depreciation and amortization
costs reflected in the net increase in income from continuing  operations before
income  taxes.  The Company  continues to pursue a strategy of  selective  asset
sales and limited new investments.

Discontinued Operations

On January 14, 2000, the Company sold its mortgage servicing business,  Atlantic
Mortgage & Investment  Corporation  ("AMIC"),  a wholly owned  subsidiary of the
Company to ABN AMRO North  America.  The  Company  received  approximately  $484
million  in  cash  at  closing.  The  transaction  is  subject  to  post-closing
adjustments. See Note 2 to the Consolidated Financial Statements.

Portfolio Quality

Finance assets  represent the Company's  largest asset and its primary source of
revenue.   The  Company's   finance  assets  at  September  30,  2000  decreased
approximately $0.2 billion to approximately $2.8 billion from approximately $3.0
billion  at the  end of  1999.  This  was  primarily  due  to  the  sale  of its
PitneyWorksSM Business RewardsSM Visa(R) and Business Visa(R) card operations.

Lease  finance  receivables  represent  the  Company's  expected  future  rental
payments  on its  finance  leases and at  September  30,  2000  amounted to $2.9
billion  compared to $2.7 billion at December  31, 1999.  The increase is mainly
attributable to growth experienced in the Company's internal leasing portfolios.

Other finance  receivables  represent the amount invested in the Company's Small
Business  Solutions  programs,  including its PitneyWorksSM  Business  RewardsSM
Visa(R) and Business  Visa(R) card  operations  that were sold during June 2000.
The  balance of other  finance  receivables  at  September  30,  2000 was $267.8
million  compared to $539.5 million at December 31, 1999. The decrease  reflects
the sale of the Company's credit card operations referred to above.

The  Company's  allowance  for  credit  losses  as a  percentage  of  net  lease
receivables  (net  investments  before  allowance  for  credit  losses  plus the
uncollected principal balance of receivables sold) was 1.65 percent at September
30, 2000 and 1.83 percent at December 31, 1999.  PBCC charged  $50.6 million and
$56.7  million  against the allowance for credit losses in the first nine months
of 2000 and 1999, respectively.

Financial Position

Total assets of the Company  remained  relatively  fixed at $5.4 billion at both
September 30, 2000 and December 31, 1999. However,  the balance at September 30,
2000  reflects  the  disposal  of $491.8  million of net assets of  discontinued
operations  and the sale of the  Company's  credit card  operations,  which were
offset by loans made to the Company's parent and other affiliates.


<PAGE>


                         PITNEY BOWES CREDIT CORPORATION

                ITEM 2.-- MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cash Flows

It is the  Company's  policy  not to  restate  prior year  balance  sheets  when
segregating assets of discontinued operations in a given year. Accordingly,  the
Company's Statement of Cash Flows in that year includes the effect of changes in
assets  and  liabilities  of  discontinued  operations,  as a  component  of the
appropriate category of cash flow.

PBCC's cash and cash equivalents increased by $34.0 million to $166.9 million at
September 30, 2000 compared to $132.9 million at December 31, 1999. The increase
reflects the growth  experienced  in the Company's  Reserve  AccountSM  program.
Under this  program,  customers  prepay for postage  and earn  interest on their
deposits  in the  form  of  free  postage.  Net  cash  provided  from  operating
activities  amounted  to $281.7  million  during the first nine  months of 2000,
compared to $350.1  million during the same period of 1999. The decrease in cash
from operating activities compared with last year is largely attributable to the
inclusion of operations from the Company's mortgage service subsidiary, AMIC, in
cash flow for the first nine months of 1999.  The  Company  sold AMIC on January
14, 2000. Net cash used in investing activities amounted to $44.1 million during
the first nine months of 2000,  compared to $72.9 million during the same period
of 1999. The decrease is mainly due to the receipt of proceeds from the sales of
AMIC and the credit card portfolio during 2000,  partly offset by the lending of
a  portion  of the  proceeds  to PBI and  other  affiliates.  Net  cash  used in
financing  activities amounted to $203.6 million during the first nine months of
2000, compared to $270.9 million during the same period of 1999.

The Company's principal sources of funds are from operations and borrowings.  It
has been PBCC's practice to use a balanced mix of debt maturities, variable- and
fixed-rate  debt and interest  rate swap  agreements to control  sensitivity  to
interest  rate  volatility.  PBCC's  debt mix was 45 percent  short-term  and 55
percent  long-term at both  September  30, 2000 and  December  31, 1999.  PBCC's
swap-adjusted   variable-rate   versus   fixed-rate  debt  mix  was  45  percent
variable-rate  and 55 percent  fixed-rate at September 30, 2000,  and 39 percent
variable-rate  and 61 percent  fixed-rate at December 31, 1999.  The Company may
borrow through the sale of commercial  paper,  under its confirmed bank lines of
credit,  and by private and public  offerings of intermediate- or long-term debt
securities.  The  Company  had  unused  lines of  credit  and  revolving  credit
facilities  totaling $1.2 billion at September 30, 2000,  largely supporting its
commercial paper borrowings.

The Company's  utilization  of  derivative  instruments  is normally  limited to
interest  rate swap  agreements  ("interest  rate  swaps") and foreign  currency
exchange  forward  contracts   ("foreign  currency   contracts").   The  Company
periodically  enters into  interest  rate swaps as a means of managing  interest
rate exposure.  The interest rate differential paid or received is recognized as
an adjustment to interest expense. The interest differential on the swap will be
offset against  changes in valuation of the assets  resulting from interest rate
movements. The Company is exposed to credit loss in the event of non-performance
by  the  counterparties  to  the  interest  rate  swaps  to  the  extent  of the
differential  between  fixed- and  variable-rates;  such  exposure is considered
minimal. The Company periodically enters into foreign currency contracts for the
purpose of minimizing  its risk of loss from  fluctuations  in exchange rates in
connection  with certain  intercompany  transactions.  The Company is exposed to
credit loss in the event of non-performance by the counterparties to the foreign
currency  contracts to the extent of the difference between the spot rate at the
date of the contract  delivery and the  contracted  rate;  such exposure is also
considered  minimal.  At  September  30,  2000 there  were no  foreign  currency
contracts outstanding.

Since the Company normally enters into derivative transactions only with members
of its banking group, the credit risk of these transactions is monitored as part
of the normal  credit  review of the banking  group.  The Company  monitors  the
market risk of derivative  instruments  through  periodic  review of fair market
values.

The Company will continue to use cash to invest in finance  assets with emphasis
on internal  leasing  transactions  and select  investment  in capital  services
programs.   The  Company  believes  that  cash  generated  from  operations  and
collections on existing lease contracts will provide the majority of cash needed
for such investment  activities.  Borrowing  requirements will be dependent upon
the level of equipment  purchases  from Pitney Bowes Inc.,  the level of capital
services financing activity,  capital requirements for new business initiatives,
intercompany  loans,  and the refinancing of maturing debt.  Additional cash, to
the  extent  needed,  is  expected  to be  provided  from  commercial  paper and
intermediate-  or  long-term  debt  securities  and  intercompany   funds,  when
available.  While the Company  expects that market  acceptance  of its debt will
continue to be strong,  additional liquidity is available under revolving credit
facilities and credit lines.


<PAGE>


                         PITNEY BOWES CREDIT CORPORATION

                ITEM 2.-- MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Regulatory Matters

In 2000, the U.S. Postal Services  ("U.S.P.S.")  issued a proposed schedule for
 the phaseout of manually reset electronic meters in the U.S. as follows:

o As of February 1, 2000, new placements of manually reset electronic meters are
no longer permitted.

o    Current users of manually reset electronic meters can continue to use these
     meters for the term of their current rental and lease agreements. Leases or
     rentals  due to expire in the year 2000 can be  extended  to  December  31,
     2001.

In August of 2000, the U.S.P.S. also issued a proposal to cease placements of
non-digital, or letterpress, meters as follows:

o    New placements of non-digital  meters with a "timeout" feature that enables
     the meters to be  automatically  disabled,  if not reset within a specified
     time period are no longer permitted after December 2003.

o    New placements of non-digital  meters without the "timeout"  feature are no
     longer permitted after June 2001.

PBI has submitted comments to the U.S.P.S.  proposed schedules  described above.
Based on the proposed schedules PBI believes that the phaseout of manually reset
electronic  meters  or  non-digital  meters  will  not  cause  material  adverse
financial impact on PBI.

In May 1995,  the U.S.P.S.  publicly  announced  its concept of its  Information
Based  Indicia  Program  ("IBIP")  for future  postage  evidencing  devices.  As
initially  stated by the  U.S.P.S.,  the purpose of the program was to develop a
new  standard  for  future  digital  postage   evidencing  devices  which  would
significantly  enhanced postal revenue security and supported  expanded U.S.P.S.
value-added services to mailers.

During the period from May 1995 through May 2000,  PBI has  submitted  extensive
comments to a series of proposed IBIP  specifications  issued by the U.S.P.S. In
March  2000,  the  U.S.P.S.  issued the latest set of  proposed  specifications,
entitled  "Performance  Criteria  for  Information  Based  Indicia and  Security
Architecture  for Open IBI Postage  Evidencing  Systems"  (the "IBI  Performance
Criteria").  PBI has  submitted  comments to the IBI  Performance  Criteria.  In
September and October 2000,  the U.S.P.S.  issued further  proposed  regulations
regarding postage  evidencing  systems using  Information Based Indicia,  titled
"Refunds and Exchanges" and "Production, Distribution and Use of Postal Security
Devices and Information-Based  Indicia." The Company will be submitting comments
regarding those proposed regulations.

In March 2000, PBI received approval from the U.S.P.S. for the commercial launch
of  the  Internet  version  of  a  product  which  satisfies  the  proposed  IBI
Performance Criteria, ClickStamp(TM) Online.

Forward - Looking Statements

The Company cautions readers that any  forward-looking  statements  (those which
talk about the Company's or management's  current expectations as to the future)
in  this  Form  10-Q  or  made  by the  Company  management  involve  risks  and
uncertainties which may change based on various important factors. Words such as
"estimate",  "project", "plan", "believe",  "expect" and similar expressions may
identify such forward-looking  statements. Some of the factors which could cause
future  financial  performance to differ  materially  from the  expectations  as
expressed in any  forward-looking  statement made by or on behalf of the Company
include, but are not limited to:

o    changes in postal regulations
o    timely development and acceptance of new products
o    success  in  gaining  product  approval  in new  markets  where  regulatory
     approval is required o successful entry into new markets
o    mailers'  utilization of alternative means of communication or competitors'
     products
o    the  Company's  success  at  managing  customer  credit  risk
o    changes in interest rates


<PAGE>


                           PART II - OTHER INFORMATION

ITEM 1. -- LEGAL PROCEEDINGS

     In the course of normal  business,  the  Company and PBI,  its parent,  are
occasionally  party to lawsuits.  These may involve litigation by or against the
Company relating to, among other things:

o        contractual rights under vendor, insurance or other contracts
o        intellectual property or patent rights
o        equipment, service or payment disputes with customers
o        disputes with employees

     The Company is  currently a plaintiff or defendant in a number of lawsuits,
none of which should have, in the opinion of  management  and legal  counsel,  a
material  adverse  effect on the  Company's  financial  position  or  results of
operations.

     In June 1999, PBI was served with a Civil Investigative Demand ("CID") from
the U.S. Justice  Department's  Antitrust Division.  A CID is a tool used by the
Antitrust  Division for gathering  information and documents.  PBI believes that
the Justice  Department may be reviewing its efforts to protect its intellectual
property rights.  PBI believes it has complied fully with the antitrust laws and
is cooperating fully with the department's investigation.

ITEM 6. -- EXHIBITS AND REPORTS ON FORM 8-K

a.       Financial Statements - see index on page 2

          Exhibits (numbered in accordance with Item 601 of Regulation S-K)
<TABLE>
<S>         <C>
          Reg S-K                                                                 Incorporation
          Exhibits                           Description                           by Reference

        ---------          ----------------------------------------              ---------------


            (12)           Computation of Ratio of Earnings from Continuing        See Exhibit (i)
                             Operations to Fixed Charges                           on page 16

            (27)           Financial Data Schedule                                 See Exhibit (ii)
                                                                                   on page 17

                There are no  unregistered  debt  instruments in which the total
                amount of securities authorized thereunder exceeds 10 percent of
                the total  assets  of the  Company.  Copies  of all  instruments
                defining  the rights of  securities  holders  are  available  on
                request.

b.       No reports on Form 8-K were filed during the quarter ended September 30, 2000.


</TABLE>





<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                           PITNEY BOWES CREDIT CORPORATION

                                           By         /s/  DAVID KLEINMAN

                                                    ----------------------
                                                        David Kleinman
                                                  Vice President, Finance and
                                                  Chief Administrative Officer
                                                 (Principal Financial Officer)

Dated: November 14, 2000



                                           By      /s/  MICHAEL C. COSTELLO
                                                    ----------------------
                                                      Michael C. Costello
                                                          Controller
                                                 (Principal Accounting Officer)

Dated: November 14, 2000







<PAGE>



                                   Exhibit (i)

  Computation of Ratio of Earnings from Continuing Operations to Fixed Charges
                            (in thousands of dollars)

<TABLE>
<S>                                     <C>              <C>                   <C>                 <C>
                                   Three Months Ended September 30,          Nine Months Ended September 30,
                                   --------------------------------          -------------------------------
                                             2000             1999                  2000             1999(2)
                                             ----             ----                  ----             -------

Income from continuing operations

  before income taxes................   $  74,601        $  68,223             $ 207,458           $ 186,464
                                          -------          -------              --------            --------




Fixed charges:
  Interest on debt...................      28,303           26,606                88,768              91,167
  One third rent expense.............          93              148                   307                 456
                                          -------          -------              --------            --------

Total fixed charges..................      28,396           26,754                89,075              91,623
                                          -------          -------              --------            --------

Earnings from continuing operations
  before fixed charges...............   $ 102,997       $   94,977             $ 296,533           $ 278,087
                                          =======          =======              ========            ========

Ratio of earnings from continuing
  operations to fixed charges (1)....       3.63X            3.55X                 3.33X               3.04X
                                          =======          =======              ========            ========

</TABLE>





(1)  The ratio of  earnings  from  continuing  operations  to fixed  charges  is
     computed by dividing  earnings  from  continuing  operations  before  fixed
     charges by fixed charges. Fixed charges consist of interest on debt and one
     third of rent expense as representative of the interest portion.

(2)  Amounts reclassified to reflect AMIC as discontinued  operations.  Interest
     expense and the portion of rent  representative  of the interest  factor of
     this  discontinued  operation  have been excluded from fixed charges in the
     computation.  Including  these  amounts  in fixed  charges,  but  excluding
     subsidiary  disposition  gain and  loss,  the  ratio of  earnings  to fixed
     charges would have been 2.58 times for the nine months ended  September 30,
     1999.


<PAGE>