Chase Pays Primeritus up to $800 on a Repo

EDITORIAL

While everyone who is spinning their wheels for $300 a repo contingent for Primeritus, they are getting paid up to $800 per repo on some accounts recovered within 10 days by Chase. A screen shot provided from RDN illustrates a tiered fee schedule paid to Primeritus based upon recovery speed.

Between day 11 and 17, the fee goes down to $750 and over day 18, the fee goes down to $675. Still far above the $575 being paid to LPS by Westlake Financial Services back in February.

While no surprise that forwarders are getting paid far above what the actual repossession agencies get paid, a bonus fee schedule is a new element that shows a premium being placed on recovery speed.

The account in the screen shot was a cease and desist, “No Contact” account with other contingencies that show a higher level of difficulty than your run of the mill assignment, but regardless, Chase’s desire for quicker recovery illustrates a hidden need despite industry wide assumptions of their ambivalence to the lower forwarding company recovery ratios and speed.

At $675 paid to Primeritus and $300 being paid to the assigned repossession agency, contingent, that brings the fee ratio to the repossession agencies down to 44% at the base rate and 37.5% at the higher paid 10 day recovery bonus.

The assigned agent was not offered any additional fees for recovering the vehicle at a quicker rate. It is unknown, and unlikely, that any agents are, or have, been offered any additional fees for Primeritus to recover vehicles quicker to facilitate their tiered bonus program.

Again, I do not blame Primeritus. They wouldn’t get away with it if the repossession agencies of this country didn’t let them. Regardless, I think it’s important for you to know just how much is being earned by a forwarding company simply for sending you accounts, while your agents risk their lives and time and you pay exorbitant insurance expenses, waste fuel and give away storage and property for free. Doesn’t look like such a great deal when you see what they’re earning on your back.