While the entire repossession industry was busy either talking or reading about DRN’s termination of four national forwarding companies, Primeritus’s CEO, Chris McGinness, was busy loading their literary guns. And by Thursday afternoon, he was ready, aimed and pulled the trigger in the form of a rather pointed memo on the topic to their agent network.
Below is the content of Mr. McGinness’ memo forwarded to their agent network by Amanda Little, Director of Vendor Management for The Primeritus Family of Companies.
Dear Valued Partners,
As many of you have heard, DRN has made the decision to terminate its contract with certain forwarding companies, including Primeritus. Primeritus has been in this position before with DRN when Primeritus fired DRN in 2014. Primeritus not only survived but thrived and grew during that period. While DRN’s behavior over the last 18 – 24 months has certainly been disappointing, this latest action provides great opportunity for our industry. Primeritus has been and is continuing to pursue new and innovative LPR solutions to what has become a monopolistic, stagnate and stale service lacking innovation and price competition.
We are committed to ushering in and cultivating new competition in the LPR space by supporting multiple third party LPR providers in an effort to provide the industry more options than a single controlling provider. Additionally, Primeritus will continue to support and partner with those agencies that have invested in whichever LPR technologies they find suitable for their companies. We believe DRN’s move to punish forwarding companies also unintentionally hurts the agency affiliates. Primeritus is a large provider of forwarding work and will no longer be adding assignments to DRN’s hotlist. This shortsighted move by DRN only serves to significantly lower the total amount of assignments in their active hotlist and likely will create less revenue opportunity for those companies that have invested so heavily in the LPR scanning services.
While we find DRN’s latest move disappointing given the impact it will have on our agent network, we remain optimistic with the opportunities that lie ahead. We believe that competition is a good thing and are excited to help introduce more of it in this space.
Chris McGinness
CEO
Primeritus Family of Companies
While there are many in the repossession agency world that have issue with DRN, it begs to question just how much industry support Mr. McGinniss will be capable of garnering in support of his rather audacious endeavor. Furthermore, it will be interesting to see if they can deliver in a technological arena that another former DRN foe, Location Services, had dabbled in with little success. Time will tell, but based upon his rather pointed accusations, there is clearly some bad blood between he and DRN. It will be interesting to see how this evolves.
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