Arizona: ELT Program Distinctives

There are a number of features of the Arizona Electronic Lien and Title (ELT) program that help make the program effective for lenders and their customers (vehicle owners):

• All titles with liens are electronic titles.  This helps prevent incorrectly receiving paper titles - a problem that can occur in states that offer both ELTs and paper titles with liens.
• Immediate lien release. Lenders have the option of sending a transaction outside of the daily process to promptly remove their lien and allow the vehicle owner to pick up a clear title (no lien) from an MVD office. Owners do not have to wait the normal 3-5 business days for the title to arrive in the mail.
• Repossession process does not require a paper title.  Often, states require that an ELT be printed for any change to a title, including applying for a repossession title.  Arizona does not require that an ELT be printed to accompany an Affidavit of Repossession.

The Arizona Electronic Lien and Title program has been in place since 2003.  The Arizona MVD began requiring participation on May 31, 2010, and DDI has been providing ELT services in Arizona since then.

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Arizona Drivers Licenses: Fraud Alert

The Arizona Department of Transportation is concerned about Arizona residents falling victim to fake transactions for driver license services.

The Motor Vehicle Division of the Arizona Department of Transportation wants to alert customers that there are various Internet-based fraudulent schemes operating with the goal to illegally charge an individual's credit card account for bogus driver license services. The fraud occurs by scam artists using the Internet to falsely advertise the ability to provide driver license services that in Arizona are only available through http://servicearizona.com.

Please be diligent to contact your state DMV for Driver License or vehicle title services. Some states, including Arizona, do allow certain transactions through third party or tag agent providers. Arizona provides a list of authorized third parties at www.azmvdservices.com

Image above is Phoenix Arizona Fake Cactus Cell Towers.

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States Compelling Participation in ELT

A series of questions in which our writer attempts to answer simple-sounding questions without saying things like "Well, yes, they do have ELT but..." Let the reader understand that these are simplified answers. ;)

See the other posts in this short series: Electronic Title States, Upcoming Electronic Title States, States Compelling Participation in ELT (this post), and States Planning to Compel Participation in ELT.

Which states compel participation in their ELT program?

• Arizona
• California
• Kansas
• Louisiana
• Nebraska
• Pennsylvania
• Wisconsin

This is one of the most complicated questions to answer, and the wording for the question was chosen carefully to accurately include all the states above. We intentionally did not phrase the question "What are the Mandatory ELT states?" or even "Which states never print titles with liens?"

There are four basic methods that States are currently using to "compel" participation:

• Mandatory ELT: by law lenders must participate in the program. This applies to PA, LA, CA, and AZ. Each state allows for certain exemptions, particularly for individuals listed as lienholders. Arizona required immediate participation and would not process lien applications without enrolling in the program. Pennsylvania (the first state to make ELT mandatory) used a gradual enforcement process. Louisiana, while always maintaining that ELT participation is required, is also gradually enforcing their law. California's law went into place in 1/1/2012 but the law allowed them to determine schedule and exemptions. At this point we are expecting them to implement the ELT participation mandate in September 2012 as Arizona did, requiring participation to even file a lien.
• Phase out the paper title: Florida is the author and authority of this method which basically involves changing policies to make vehicle transactions easier without a paper title - the paper title just becomes obsolete. Florida is not on our list above because they do not require participation in ELT nor do they restrict the printing of paper titles. They do intend to require participation in the near future.
• Fees for non-electronic processing: Wisconsin charges lenders fees for not participating. There is always an extra $5 processing fee for manual transactions. In addition, "if a financial institution is not exempt, it will be assessed a $20 surcharge for each application submitted to DMV for processing that can be completed electronically...."
• No paper titles with liens: Nebraska and Kansas both leave it to the lender's preference about participating in their ELT programs, but do not print and mail titles with liens as part of their normal process.

If you are a lender and would like a greater explanation of these differences, please contact DDI. If you are a state or would like more technical details, you may also visit our AllAboutTitles.com site.

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Electronic Title States

A series of questions in which our writer attempts to answer simple-sounding questions without saying things like "Well, yes, they do have ELT but..." Let the reader understand that these are simplified answers. ;)

See the other posts in this short series: Electronic Title States (this post), Upcoming Electronic Title States, States Compelling Participation in ELT, and States Planning to Compel Participation in ELT.

Which states currently have an Electronic Lien and Title (ELT) program?

• Arizona
• California
• Florida
• Georgia
• Hawaii
• Idaho
• Kansas
• Louisiana
• Massachusetts
• Nebraska
• New York
• Ohio
• Pennsylvania
• South Carolina
• Texas
• Utah
• Virginia
• Washington
• Wisconsin

Please note the following:

• The Kansas Electronic Lien and Title program does not currently accommodate direct interaction with service providers like DDI.
• In New York, the program is known as the Electronic Lien Transfer (ELT) Program, since there is no electronic title. Even with liens, owners retain titles in New York state.
• The Utah E-Liens (Electronic Lien Transfers) program does not currently accommodate direct interaction with service providers like DDI.
• The Wisconsin program does not currently meet our definition for a full ELT program, since as in New York, owners retain the paper title and the state does not electronically notify lenders when the lien has been recorded. However, they do require lenders to participate in their lien recording program, e-MV Agent. Wisconsin DOT expects to change to a full ELT program in the Summer of 2012. ("On July 1, 2012, Wisconsin will become an electronic title state.")

If you are a lender and would like a greater explanation of these differences, please contact DDI. If you are a state or would like more technical details, you may also visit our AllAboutTitles.com site.

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Arizona ELT Update

The Arizona Electronic Liens and Titles (ELT) program has been mandatory since May 21, 2010. We have a significant number of Arizona customers, including lenders based in Arizona and out-of-state lenders just needing to work with the Arizona ELT program. I've posted some updated Questions about how electronic titles work in AZ to http://www.azelt.com. A sampling:

Can I just register for the program and then ask for paper titles?
Arizona only allows the printing of paper titles with liens for specific cases. There is also a $10.00 penalty assessed for each Paper Title with lien requested. Acceptable reasons for requesting a paper title are:

• Change of lien information
• Adding or changing a lienholder or owner
• Change to owner or lienholder legal status
• Adding an Arizona brand
• Correcting the Vehicle Identification Number
• Correcting the vehicle year
• Correcting odometer
• Correcting the make
• Changing body style
• Customer is moving out-of-state

Repossession does not require a paper title.

Is there an expedited title print process? How does it work?
On release, Arizona allows the lender to specify that a title should be released immediately and made available for the vehicle owner to pick up a printed title. The owner can then pick up a title from any MVD office. The expedited release takes at most two hours to update through MVD's systems. The owner should present identification and is responsible for the over-the-counter fee.

How does the repossession process work? Is a paper title required?
Complete a Repossession Affadavit and submit it to the MVD. For immediate sales, the affidavit can include purchaser information and a new title will be issued in the purchaser's name. Otherwise a clear title will be issued in the name of the lienholder.

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Very Happy Customers

A few weeks ago we received a very nice note from one of our newer customers:

Ann, just wanted to let you know that our Arizona title issues got completed and we are very happy customers. Please let Angela know also. Your company is great and your service (all of you) has been wonderful. Look forward to doing more with you.

This is a bank in Kansas who needed to work with the Arizona Electronic Lien and Title (ELT) program in order to accomodate a customer moving there. A very common story for us since Arizona requires anyone holding a lien to participate in ELT. We're always glad to help!

Image above is My Story Can Beat Up Your Story by Jeffrey Alan Schechter.

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Record Growth

Our latest press release (highlighting and links mine):

Decision Dynamics, Inc. (DDI) Reports Record Growth in the Electronic Lien and Title (ELT) Marketplace

In the first six months of 2010, Decision Dynamics, Inc. (DDI) experienced record growth in the Electronic Lien and Title (ELT) market with its Premier eTitleLien™ product and services offering in the state of Arizona. DDI successfully added more client accounts in Arizona than any other ELT vendor. DDI's president and CEO, Glenn Thames, said "DDI's success is attributed to having the most cost-effective solution in the market, along with a dedicated staff committed to customer service excellence. Through this attention to customer service, DDI has grown to over 800 client accounts in just a few short years, having never lost a customer to a competitive ELT vendor."

Companies that place liens on vehicle titles in Arizona were required to participate in the state's ELT program beginning May 31, 2010. With DDI's Premier eTitleLien™ product and services, lienholders are able to participate in the ELT program and remain in complete control of their title portfolio. Premier eTitleLien™ is a web-based application that allows lienholders to manage their vehicle titles electronically and provides an electronic ownership record in lieu of a paper title. Premier eTitleLien™ interfaces with a state's motor vehicle titling agency's computer systems to receive electronic titles and transmit lien releases for the lienholder. With Premier eTitleLien™, companies have access to their electronic titles and the tools needed to streamline the titling process.

An electronic titling program benefits motor vehicle agencies, lienholders and vehicle owners. Motor vehicle agencies benefit by providing more timely data exchange, improving data accuracy, and reducing and controlling the use of secure forms. Electronic titling benefits lienholders by reducing mailing costs, reducing physical storage requirements, and deterring the inherent fraud associated with duplicate titles and paper title releases. Vehicle owners benefit by receiving clear titles upon the release of the lien on the electronic title.

"With the Premier eTitleLien™ product and associated services, DDI provides the most cost- effective solution in the market with no start-up costs, no monthly minimums, no per-user charges, and no installation or training charges. In addition, DDI's license agreements are lender-friendly, allowing for an opt-out without penalties. DDI is dedicated to continuing to provide the ELT solution of choice for lenders. We are continuing to expand our client base among the existing ELT states and look forward to providing services in the newest ELT state, Nebraska, later this fall," said Thames. DDI is a software technology company that provides electronic titling services for lienholders in the United States.

For more information on electronic titling, visit www.etitlelien.com.

For this Press Release in printable form and other news, please visit http://etitlelien.com/News.aspx.

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Arizona Mandatory ELT Program Impacting Lenders In All States

When the Arizona program went mandatory this past May 31, 2010, two things happened:

1. The Arizona DOT Motor Vehicle Division stopped printing titles with liens
2. MVD and 3rd party offices began requiring lienholders to be active participants in the ELT program before they would accept a Title and Registration Application listing that lender as the lienholder.

The only exceptions to this program are for mobile home liens and for individuals desiring to be lienholder.

We did expect the broad impact this has had, from traditional lenders (banks and credit unions) to dealers providing financing and even non-lenders like bail bond companies. Arizona has been very consistent in enforcing participation in the ELT program.

In addition to the large number of Arizona lenders, we have been getting calls from around the country. I spoke with callers just today from Illinois, New York, and Maine. Any lender with a customer in or moving to Arizona is being required to sign up with an ELT service provider like DDI.

Reactions to the news that they have to find a provider and register as a lienholder varies. Some lenders are so unhappy with having to comply with something new they refuse to offer loans on vehicles titled in Arizona. (Bad news if you're transferred there and your lender won't let you title your car.) Others seem unfazed.

ELT is increasing in popularity, not decreasing, as more states implement new programs and require participation.

Image: Cactus4 by Fishing Cactus

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Arizona: Mandatory ELT by May 31

This coming June Arizona will join Pennsylvania and Louisiana as states that require participation in the Electronic Liens and Titles program. Arizona sent a letter that we received a copy of yesterday:

All lenders conducting business will be required to transmit lien information through an appproved Service Provider. [Arizona Department of Transportation Motor Vehicle Division] advises all lenders to contract with an approved Service Provider prior to May 31st.

And we are listed as a "near future" service provider. (We've been working with AZ DOT for over a year now, but due to internal changes related to going mandatory they have delayed our participation.) This was a nice gesture on their part. We expect to be live in Arizona very soon.

As with Louisiana (see yesterday's post) Arizona has had an ELT program for a number of years. The state legislature passed the change ("REQUIRE") in July 2009. As well as making life easier for lenders, full participation will be a help for lenders and Arizona residents in the reduction of fraud.

Here is the full letter from the Arizona MVD.

UPDATE: Arizona reissued the letter with corrected vendor contact information. Ours has been correct all along. ;)

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