FOR IMMEDIATE RELEASE
PALATINE, IL – September 5, 2012 – The MVTRAC Recovery Industry Advisory Board formally announced today the implementation of new strategic policies regarding MVTRAC’s business model and associated operations. The new initiatives were the result of an extensive development and review process, then unanimously voted and later ratified into action at MVTRAC’s annual advisory board meeting.
The changes to MVTRAC’s model include the introduction of a new pricing structure for their clients and network of agents, in addition to enacting new compliance mechanisms designed to be reward-based, rewarding individual agencies as they fulfill compliance-related obligations while allowing Forwarders and lenders to utilize more data.
According to Maria Olson, CEO and Managing Member of AZ Asset Recovery, LLC and Director of MVTRAC’s Recovery Industry Advisory Board, “In past years, MVTRAC has always looked out for their network [of agents] in terms of providing [them] premium fees, paid faster and well above industry standards. Given recent industry volume trends, our board decided unanimously that an adjustment towards a high-volume business model at a reduced fee would benefit all parties involved in both the immediate and long-term environment.”
Due to the new strategy of lower rates, MVTRAC has successfully negotiated increased work volumes from current lender relationships in addition to establishing relationships with new lenders and forwarders who had previously been unable to pay MVTRAC’s premium fees due to lower collateral values. As a result, MVTRAC agents can anticipate higher cash flows by recovering larger volumes of available defaulted collateral and increased margins.
Scott A. Jackson, CEO of MVTRAC stated of the ratified vote, “With the Recovery Industry Advisory Board’s vote and ratification of the additional strategy, The Intelligent Data Network™ of both MVTRAC Subscribers and MVRecovery agents benefit. We’ve reached critical-mass with hundreds of systems and hundreds of millions of plate captures, a large percentage of the recoveries now happen within the first 30 days after assignment and over 60% of our revenue is technology based. With this vote, we now have access to 50,000 or more assignments per month. Current data points show 29,000 historical hits our MVLeads portal can push through MVAirTrafficControl to pick up today, previously off limits. MVTRAC is a Ferrari that’s been sitting mostly in the post charge-off garage, while others drive around their Yugos mostly in the pre, post charge-off and the Forwarder world. Let’s take her out for a spin! It’s an amazing feat to have succeeded in vision and execution, of literally Revolutionizing the Recovery Industry™ while concentrating on a focused market and building a truly innovative data technology company.”
Kevin Wilson, Chief Operating Officer of United Auto Recovery stated of the vote and the shift into pre charge-off, “We hope that the new relationships formed with lien holders, due to the decrease in fees, helps forge stronger partnerships between MVTRAC, MVTRAC partners, and the lien holders, themselves.”
The model change also allows forwarders to utilize The Intelligent Data Network ™”
Not everyone on the board was accepting of the changes, Rob Winther, President of CUSA, Inc. out of Arvada, Colorado said of the strategy, “In our original conference calls to develop the changes and up to the vote, I was taken-in by the prospect of increasing volumes for myself and the industry; after all, who wouldn’t feel enticed by greater volumes in a down economy. I, and I know many others, have appreciated the higher recovery fees the MVTRAC model has paid its agents. As details came out regarding some of the changes, my mindset changed. I’ve been doing this for 26 years and have been fighting for the industry and against forwarding business models, which includes lower fees and contingency. Scott Jackson and I discussed my strong opposition. We agreed the advisory board was intended to be an autonomous voice and it is important for the Recovery Industry and for my beliefs to continue the struggle, even in the face of a strong headwind. I disagreed with the majority decision of both boards, but I do believe they’re making a business decision that is in the best interests of MVTRAC.”
Regarding the opposition, Mike Griffin of Final Notice Recovery out of Baltimore had this to say, “I currently run over 10 MVTRAC ALPR systems on a brand new fleet of vehicles. Some may feel disgruntled by the unanimous vote and announcement but I’d ask everyone to take time to understand the strategy. We need to take back our industry from the poor forwarding models and this is a proactive decision made collectively by MVTRAC’s executive team and the Recovery Industry Advisory Board. We voted unanimously to compete for greater volumes and better margins. No other Forwarders include their agents in making decisions, I’m happy to be able to make a difference for myself and other agents. “ Mike added, “Together, as a team and one unit, we are taking our industry back!”
“Once again, the MVTRAC family has taken a bold step in providing their members higher profit margins,” states Alex Allen, General Manager of Anytime Recovery in West Palm Beach, adding, “By entering into agreements with some of the nation’s largest lien holders and injecting their respective pre charge-off accounts into the MVTRAC database, MVTRAC Subscribers are better positioned to recover more units than [with] any other ALPR provider.” Alex Allen continues, “MVTRAC continues their tradition of making money with their members rather than off of them by providing agents with revenue shares for every purchased scan and integrating their business model with other industries seeking value from ALPR data. We are taking less for the recovery fee but we will make up for it in the share of the data and for this reason, Anytime Recovery is more profitable than our competitors simply by utilizing the MVTRAC system.”
Peggy Chapman of Speedy Recovery out of Las Vegas, Nevada says of the vote, “Everyone I talk to says they’re volumes are down in a big way, including Speedy Recovery. If these additional steps help to take back our industry, if they help in bringing the assignments to the MVTRAC agents than I’m all for it. I run my systems in Nevada, which is a State that you can’t get the license plates in bulk, and the systems work. The volume of active and passive assignments that come our way has already increased with this initiative.”
Scott Patterson went on to say, “As an agency owner and proud member of the MVTRAC network, I have experienced increased profits from their numerous revenue streams that more than offset the lower recovery fees. I have used multiple camera systems and with MVTRAC, we still just “instantly pick up the car” and don’t have to contact a forwarders answering service at 2am which you just didn’t know if you’d get the assignment. I am excited for the sheer volume of accounts being added to their database and the opportunity to become more profitable than our competitors simply by utilizing the MVTRAC system. Patterson went on to add, “I’m on the waiting list for two more systems! I believe in MVTRAC that much!”
About MVTRAC – Recovery Industry Advisory Board
The MVTRAC Recovery Industry Advisory Board is a board of elected professional recovery agents that aid MVTRAC in developing, reviewing and implementing new policies for the betterment of The Intelligent Data Network™ and the Recovery Industry as a whole. The Recovery Industry Advisory Board works autonomously, making recommendations, approvals or oppositions to matters having an impact on the industry. Current members include Maria Olson (AZ Asset Recovery), Todd Abelhouzen (Intermountain Research & Recovery), Rob Winther (CUSA, Inc.) Alex Allen (Anytime Recovery), Mike Griffin (Final Notice Location & Recovery), Peggy Chapman (Speedy Recovery) and Scott Patterson (Patterson Recovery). For more information regarding MVTRAC or the MVTRAC Advisory Board, please visit www.mvtrac.com
Their idea is to get more secured at 300 per vehicle on pre-charge off. and still pay more on charge off accounts. ok, but won’t that just make less charge off accounts seeing as they are secured at pre-charge off? If securing vehicles at a lower rate, will they lower their rate to have the cameras?
I’m disappointed that MVTrac went this route, so much for being for the agent.