CCA Membership Call 8.30.23

Written By Camila Alatorre

Our first members-only video call took the aim of providing insights into the California market as it relates to macro trends we were seeing regarding collections efforts that are reflected in a micro view within our debtor database. The call was unfortunately did not recorded, but we still wanted to make the deck and its very intriguing information available.

Watch the slide show here

A couple of the interesting talking points from the CA slides accompany the slide show:

Slide 6 (What we’re seeing):

  • Keep in mind all data is coming from specifically our Debtor Database

  • Claims are up 17% YOY through the first 8 months of 2023

  • Claims are pacing to end this year up 56% YOY

  • CO, MA, & NV are all markets seeing similar trajectories in terms of YOY growth of collections claims

Slide 7 (Avg. Dollar Amount per claims YOY)

  • Decreasing avg. dollar amount per claim could be a factor of both better due diligence and lower-value but higher-volume transactions

Slide 8 (Compared to other markets)

  • CA has a 14% higher increase in Avg. Claim Amount v. other markets this year

  • This could be a factor of higher value transactions due to market maturity, size, state-specific regulations, or economic conditions like higher cost of living and operating in California

Slide 9 (So far this year)

  • 40% of the top 10 all-time largest claims in California have originated thus far in 2023

  • Notable names like Herbl and Kushagram appear in the top 10 largest claims all-time originated so far this year

Slide 10 (Hot Spots)

  • 40% of Oakland’s claims have originated thus far this year

  • We are seeing slightly more claims ~4%, originating from Northern California versus Southern California this year

Slide 11 (Harder to collect)

  • While collections are still beating industry averages, we have seen a 10% dip YOY in successful outcomes YOY

  • Anything that can be done to get ahead of needing to send a partner to collections will be immensely valuable, i.e. checking our Debtor Database often against your current client lists, getting more aggressive with late payers, and vetting new relationships ahead of time.

Camila Alatorre