Along with raising funds during the North American Repossession Summit (NARS) to support the Recovery Agents Benefit Fund (RABF), Digital Recognition Network (DRN) presented top providers and affiliate awards during last week’s events to honor organizations that have demonstrated excellence and leadership in the repossession industry.

“We are proud to acknowledge these providers and affiliates that stand out for their hard work, innovation and dedication to the industry,” said Andy Cameron, senior vice president of FinTech at DRN.

“Each of these award winners helps to set the standard for the industry, and some have been honored by DRN multiple times, a testament to their continued commitment to excellence,” Cameron continued. “We look forward to continued partnership them and an even more successful year ahead.”

American Recovery Service (ARS) was named Provider of the Year with a high number of total repossession assignments and successful repossessions, continuing the company’s partnership with DRN that began in 2009.

DRN also honored providers Primeritus Financial Services and ALS Resolvion with Gold Provider of the Year Awards.

Professional Auto Recovery was named the National Affiliate of the Year recognizing the affiliate that has demonstrated excellence in operations and performance throughout the past year.

Other affiliate award winners included:

— Top Gun Western Region 2018: Solid Solutions 24/7

— Top Gun Midwest Region 2018: Relentless Recovery

— Top Gun Southern Region 2018: Specialized Recovery

— Top Gun Eastern Region 2018: International Recovery Systems

— Big Picture Award: Towing San Diego

“The companies we honored represent the best the industry has to offer, and we are happy to play a role in their success,” Cameron said. “Each one provided leadership, exceptional service and a dedication to furthering the goals and reputation of the recovery industry.”

Also during NARS, attendees had the chance to purchase tickets at DRN’s booth during exhibition hours for a chance to win a new Reaper Camera Kit with the proceeds going toward RABF, which aids recovery agents and their families during hard times due to injury, illness or death.

The Reaper Camera Kit, valued at over $13,000, includes license plate image capture at up to 120 mph, superior optical character recognition (OCR) and a built-in DSP, allowing for less equipment on the vehicle and making it easier for DRN Affiliates to increase recoveries and grow their business.

In addition, the camera kit is easy to set-up and reduces overall operating costs for recovery agents.

DRN responds to lawsuit

In other company news, DRN shared a response to a legal matter brought by Location Services, which has filed a complaint in California federal court that asserts DRN violates federal and state antitrust laws by using compulsory non-competes to unlawfully block, threaten or intimidate vehicle repossession agents from switching license plate recognition (LPR) technology providers.

Location Services said in a news release that terms in dispute block repossession agents from using LPR technology to recover vehicles for one year after leaving DRN. The lawsuit alleges DRN knows these terms are “unnecessary and unenforceable but inserts them into contracts to prevent repossession agents from leaving DRN or switching providers.”

The intended effect, according to the complaint, is for DRN to maintain its stranglehold on the market by eliminating legitimate competition, and preventing LPR providers, like Locations Services, from effectively competing in the LPR market.

“Repossession agents are the lifeblood of the industry and they deserve a positive change,” Location Services chief executive officer Lee McCarty, said. “We believe repossession agents should have the opportunity to select LPR providers based on the merits of their service offerings.

Agents should have the right to change providers if they are dissatisfied; that’s how market systems operate,” McCarty continued.

Location Services has undergone significant change in the past year with the benefit of new ownership and the addition of a seasoned executive leadership team.

“Our business model benefits the market through a unique value proposition, driven by service relationships with our customers and vendors, state of the art processes, analytical rigor and innovative technology,” McCarty said. “Our business is built on a foundation of integrity, compliance and operational excellence, and enables our repossession agency partners to achieve their full operational and financial potential, while delivering value to the market.

“This lawsuit is necessary to bring a level playing field to the market, enabling repossession agents to choose the LPR provider who best meets their needs, which ultimately benefits our financial services clients,” he went on to say.

In a message to SubPrime Auto Finance News, Jeremiah Wheeler, executive vice president and GM FinTech at DRN, vehemently refuted the claims made by Location Services’ complaint. Wheeler said in the message that the complaint still had not been served to DRN, but an announcement arrived coinciding with NARS.

“First and foremost, the allegations Location Services sets forth against DRN are patently false and appear to be the desperate attempt of a struggling company to shift blame for the results of its new private equity owner’s failure to implement and execute a competent business plan after acquiring Location Services from Portfolio Recovery Associates in June of last year,” Wheeler said. “In a 2015 article in RepoPulse, the prior owner of Location Services claimed that from 2014 until May 2015 it had quadrupled the number of LPR systems it had deployed in the field, and that it expected to quadruple that number again in the following 18 months.

At the time that Location Services was experiencing exponential growth of LPR systems deployed in the field, the non-compete provisions that Location Services complains about had been in place for eight years, and clearly did not inhibit the prior owner’s ability to compete and grow at an exceptional rate” Wheeler continued. “It is not DRN’s fault that, under new ownership, the number of LPR systems deployed by Location Services has dropped precipitously from more than 120 in the field, as claimed by the prior owner, down to just 15 currently deployed, as claimed in the lawsuit. 

“In fact, if one reads the full complaint, it’s clear this is a marketing campaign disguised as an antitrust lawsuit,” Wheeler went on to say. “Location Services gratuitously inserts assurances and promises about its hardware quality, customer service and pricing throughout the complaint; things more appropriate for a marketing sell sheet than a complaint in federal court.”

“DRN remains committed to offering superior value and continuing to invest in technology, systems and customer service processes that benefit recovery agents, and continuing to pay those agents industry-leading revenue shares,” he added. “DRN does not engage in anticompetitive practices, and the last antitrust lawsuit against DRN was summarily dismissed by a federal judge. DRN is confident that Location Services’ claims will fare no better this time around.”  

Location Services is seeking to enjoin DRN’s exclusionary practices. The case is Location Services, LLC v. Digital Recognition Network, pending in the U.S. District Court for the Eastern District of California.

A copy of the complaint filed by Location Services is available here.