Primeritus Follow-Up on Past Due Invoices

Memo from ARA President, Vaughn Clemmons

To The ARA Membership,

Last Friday, the leadership from the American Recovery Association (ARA) and Primeritus met to discuss the progress around getting outstanding payables to agents satisfied.

The meeting was attended by Justin Conners (COO), Amanda Little (Director of Vendor Management), and Steve Norwood (CEO) all of Primeritus, and Joel Kennedy (Executive Director) and me representing the ARA.

According to CEO, Steve Norwood, the last tranche of capital was pulled down from Primeritus’ PE ownership. These funds are continuing to whittle away the outstanding balances. By their own accounting, Primeritus estimates that they are nearly halfway to satisfying all outstanding payables, and this latest capital infusion will provide them with the capital required to bring most of the balances due current within the next 2 weeks.

Looking ahead, Primeritus CEO Steve Norwood was quick to pivot from the present work to remediate the issues, to stating that the key moving forward is to keep all agents paid and current. The leadership change at Primeritus also included the addition of a new CFO, Jennifer Turnidge, and remediating and resolving this situation has been her focus.

Prior to Norwood and Turnidge, Primeritus had undertaken a migration of their accounting software which threw their cash management off. Customer invoices (receivables) were off, disrupting the smooth flow of capital into Primeritus, which in turn flowed through to payables issues on the back end. To make sure this process stays within specifications, Primeritus have hired an internal auditor to manage the flow of receivables and payables, along with monitoring the health of the overall process.

As mentioned by Norwood and Little in our prior meeting, they provided some updates on enhancements to their process of invoicing that will further help to keep things moving quickly and efficiently. Vendors can now invoice at the time of recovery. The goal is to get RDN completely integrated by end of year, giving agents the option of submitting invoices through the Primeritus IBEAM platform, or on RDN (www.recoverydatabase.net).

The ARA appreciates the efforts made by Primeritus and the open communication about getting everything fixed. As stated in our prior communications regarding this issue, the ARA will remain engaged until all member agents are paid.