On Thursday, Insight LPR joined the recent conversation about license plate recognition technology in the repossession industry public square started by the American Recovery Association and DRN.

In a letter signed by president John Nethery and sent to Cherokee Media Group, the company said, “As the safest LPR provider in the market, Insight LPR encourages ongoing industry dialogue and appreciates the opportunity to address several key points raised by our competitor in their recent communication.”

The developments started when ARA began a series of white papers, raising questions about how LPR technology has been utilized.

“License plate recognition (LPR) technology has played a crucial role in modernizing the repossession industry by enabling real-time vehicle tracking and recovery. However, exclusive agreements imposed by LPR companies on repossession agencies have introduced significant operational restrictions, limiting fair competition and impeding market innovation,” ARA wrote in the opening white paper from February.

“Lenders widely distribute their repossession volume across multiple companies, employing various operational models including direct vendors, forwarders, and skip companies to ensure flexibility and adaptability. However, LPR contracts often enforce exclusivity that restricts repossession agencies from exercising the same level of operational independence,” the association continued.

At the end of last week, Jeremiah Wheeler, who is president of DRN|MVTRAC|SCM, crafted a response that included modifications to contracts with repossession agents.

“We have been listening to our affiliates regarding our agreement and are making some significant changes,” Wheeler wrote.

Upon seeing the announcement by DRN, Insight LPR reiterated its approach to providing services for repossession agents and finance companies.

“Our competitor’s LPR ecosystem is structured to maximize data monetization by disseminating the same information to multiple parties through numerous channels,” Nethery wrote. “These include lender-purchased data, forwarder integrations, advanced alerts, historical hits, data resellers, exclusive forwarder partnerships, favored agent access, target density maps, MV Smart Assign, and more. This approach is what creates significant risks by sending overlapping assignment information to multiple agents for the same location.

“Insight LPR believes that agent safety is non-negotiable,” he continued. “Our business model, including data dispatching policies, is designed to prioritize agent safety. When agents, lenders, or forwarders partner with Insight LPR, we are transparent and clear with them that we never dispatch vehicle location information to multiple sources; it is only sent to the scanning agency.

“Our competitor has proposed limiting hotlist placement to a single LPR platform for 45–60 days, urging lenders to prioritize them. While this may benefit our competitor, it fails to address agent safety. For over a decade, lenders have staged with multiple platforms like DRN, MV, and Plate Locate without issue. So why is our competitor suddenly criticizing a multi-platform strategy? Is it because there is a new competitor in town? The problem isn’t multi-platform staging — it is our competitor’s evolving data dissemination strategy,” Nethery went on to say.

The ARA shared similar concerns about inefficiency and agent safety in that February message.

“Historically, exclusivity within the industry has created inefficiencies and increased operational costs,” the association wrote. “One prominent example is the ‘on the hook’ mandate, initially introduced by a major lender and repossession software provider, which later became an industry norm.

“This requirement led to widespread technological inefficiencies, including slow system performance, unreliable connectivity, poor user experience, and heightened safety risks for repossession agents. Because compliance was mandatory, there was little incentive for software providers to improve technology. Repossession agencies had to comply or risk losing contracts with major lenders, an untenable scenario for companies with significant operational costs,” it said.

“In addition to technological limitations, exclusivity agreements have facilitated exploitative business practices under the guise of compliance,” ARA added. “Software providers and affiliated entities have implemented inflated service charges, such as excessive fees for lot inspections, compliance tests unrelated to employees’ roles, and mandatory vetting services that deliver minimal value. These exclusivity-driven practices have concentrated market power into the hands of a few select entities, prioritizing profit over industry advancement, stifling innovation, and restricting competition.”

Among the modifications Wheeler mentioned last week, they include:

—Change the non-compete from one year to 90 days following written 30-day notice.

—Change language requiring an agent to have a 24-hour contact number to working hours Monday through Friday.

—Create a geofence around an agent’s lot to restrict those scans from traveling though certain data pathways, so agents aren’t wasting time on advanced alerts.

The initial response from ARA after seeing DRN’s plan was positive, with president Vaughn Clemmons and the association’s board saying, “(we) want to extend our sincere thanks for taking the time to truly hear the concerns voiced by our association and the broader recovery industry.”

In his letter, Nethery challenged LPR providers to go even further.

“Our competitor has announced changes to its affiliate agreements, including reducing non-compete durations and increasing minimum scan requirements. While these adjustments represent incremental progress, they highlight the inherent restrictive nature of its business model and affiliate contracts,” Nethery wrote.

“At Insight LPR, we take a fundamentally different approach. We do not impose non-compete clauses that limit agents’ ability to explore opportunities with other LPR platforms. Instead, our partner program is built on inclusivity and flexibility. We do not require mandatory equipment purchases or enforce scan quotas. Our focus is on fostering long-term partnerships based on mutual success, ensuring that affiliates have the freedom to operate without unnecessary contractual burdens,” he continued.

“As our competitor revises its affiliate agreements, we encourage them to adopt a more agent-friendly approach, such as matching our zero-day non-compete policy. By eliminating restrictive terms entirely, the industry can move toward a more collaborative and equitable environment where agents, forwarders, and lenders can thrive,” Nethery went on to say.

The industry gathers for one of its largest events of the year later this month. The North American Repossessors Summit is set for April 23-25 in Orlando, Fla.

Perhaps even more dialogue will happen in the repossession industry public square.

ARA reiterated in February: “For the repossession industry to evolve and remain sustainable, the principles of fair competition, technological innovation, and value-driven service must replace exclusivity-based business models. The future of LPR must be built on open competition, rewarding efficiency and service excellence rather than contractual restrictions and monopolistic control.”

Wheeler wrote last week: “The industry will see many more positive changes coming from DRN. Over the past four years we have been listening and making changes that have major impacts to improving quality and quantity to all parties involved. I realize that we have to allow our product and service to speak for itself and not have others in the market blame our success on our agreement prohibitions. I also want to be sure that our affiliates know they can reach out to me anytime to discuss potential opportunities, questions or concerns.”

And Nethery closed his message with: “Multi-platform strategy is not the reason why multiple agents show up at the same address. The reason is data being shared and sold to multiple entities within the lending ecosystem. We greatly appreciate this dialogue and see its value in pushing our industry forward. We invite DRN to an open discussion at this year’s NARS Conference with agents, lenders, and forwarders in the room to dive deeper into this critical topic.”