NC Mandatory Mandatory ELT: When, How, and How Much

North Carolina launched a voluntary ELT program on November 1, 2014 with the expectation of the program eventually requiring mandatory participation. According to House Bill 1133 and Senate Bill 407, all individuals and lienholders who finance motor vehicles will be required to participate in the NC ELT program beginning on January 1, 2016. The only exception to the mandatory requirement is for individuals and lienholders who process less than five lien transactions per calendar year.

Once the grace period ends, if a lender conducts five or more transactions annually and does not have an ELT service provider, the title transactions will be rejected by the DMV. If this occurs, the DMV eDS ELT helpdesk will inform the lienholder of the approved service provider list to eliminate any further delays. Please note: there are no financial penalties associated with a DMV title application rejection.

A printed title may be requested for an ELT in the event of a repossession or an owner moving out of the state. All printed paper titles will be sent from the Raleigh DMV office. The North Carolina title and lien recording applications will remain the same and there will be no changes to current state fees.

Enrolling early in the ELT program will help the state handle the large number of anticipated required participants. DDI works with lenders and DMVs in all 50 states and is a certified ELT service provider in the 22 ELT states.  This enables DDI to help make the transition from paper titles to ELT both simple and effective for North Carolina ELT participants.

DDI is proud to be the endorsed Electronic Lien and Title (ELT) vendor by Community Bank Services (CBS) for members of the North Carolina Bankers Association. For more information on Premier eTitleLien® please visit http://www.etitlelien.com or click here to begin the process of enrolling in North Carolina!

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North Carolina ELT Quick Facts

The North Carolina DMV has recently begun accepting applications for their Electronic Lien and Title (ELT) program. We wanted to provide some "Quick Facts" about the upcoming program.

• The State of North Carolina is now accepting enrollment forms for their ELT program with a targeted “go-live” date of November 15, 2014. 
• Once active in the ELT program, a lender will receive electronic lien notifications – no more paper titles with liens will be sent by the NC DMV. 
• Lenders will have the ability to request and receive paper titles. 
• The ELT program provides for an immediate lien release for title printing pickup at DMV offices in Huntersville, Charlotte and Raleigh. There will be a state fee for this service. 
• Requested paper titles can also be mailed to the lender. An alternate mailing address can be specified for mailing printed titles, with or without liens. 
• NC has implemented a state transaction fee. The per-transaction state fee for lien notifications is $3.50. 
• To recover their costs, participating lienholders or their agents may charge the borrower of a motor vehicle loan or the lessee of an automotive lease an amount equal to the transaction fee per lien notification plus a fee in an amount not to exceed $3.00 for each electronic transaction where a lien is notated. 
• MANDATORY PARTICIPATION: Beginning January 1, 2016, all individuals and lienholders who are normally engaged in the business or practice of financing motor vehicles, and who conduct at least five transactions annually are required to enroll in the NC ELT program. 
• Lenders will receive a new lien notification each time an additional lien in placed on a title and each time a lien is released, regardless of their lien position. As a result, lenders can release their lien on a title, regardless of position. 
• No changes will be made to existing NC Title Application forms. http://www.ncdot.gov/download/dmv/VR_MVR1.pdf 
• No changes will be made to existing state title fees. For Title and Registration Fees: http://www.ncdot.gov/dmv/fees/?s=VF 
• NC will support a title inquiry that will indicate if a lien is in place. Current state cost for this title inquiry is $2.00. 

For more information about the North Carolina ELT program and for the enrollment form, please visit etitlelien.com.

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The NCBA 118th Annual Convention

DDI's Angela Leon and Amanda Jensen are joining North Carolina bankers at the NCBA 118th Annual Convention in Palm Beach, FL. As the endorsed Electronic Lien and Title (ELT) vendor for Community Bank Services (CBS), Decision Dynamics, Inc. is helping to spread the word about the upcoming ELT program offered by the NC Division of Motor Vehicles.

DDI is hoping to have as many lenders enrolled in the ELT program as possible prior to the program becoming mandatory on July 1, 2015.  Not only are there significant benefits to Electronic Lien and Title programs, but enrolling early in the program helps the state handle the large number of newly required participants, as was the case when both Florida and Georgia began requiring participation in 2013.

If you are also attending the NCBA annual convention, please come say "hello".  We'd love to hear any concerns you may about about electronic titling in North Carolina or to show you how Premier eTitleLien® already offers a number of features for NC lenders.

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North Carolina ELT Program On Schedule

The North Carolina Division of Motor Vehicles is on schedule to implement the North Carolina Electronic Lien and Title (ELT) program by their deadline of July 1, 2014. Full details of the program are not yet available, but DDI expects to begin testing in June and will begin enrolling customers for participation as details are made available.

NC legislation specifies that the program is mandatory for all individuals and lenders who normally finance motor vehicles beginning July 1, 2015, giving lienholders 12 months to enroll before the deadline.

DDI continues to work with NC Bankers Association members as the endorsed ELT vendor for Community Bank Services. Our team will be hosting instructional webinars prior to July 1 to answer questions about the NC ELT program.

Premier eTitleLien® has included support for NC Title Application forms and Title Inquiry services for many years and currently processes NC Titles through the Premier Title and Registration Service Center. DDI is looking forward to providing lenders access to the full features of ELT in North Carolina.

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Decision Dynamics Endorsed ELT Vendor for NC Bankers

Decision Dynamics, Inc. is very pleased to announce that we have been selected as the endorsed Electronic Lien and Title (ELT) vendor by Community Bank Services (CBS) for members of the North Carolina Bankers Association. Read the full press release here.

North Carolina passed legislation requiring the Division of Motor Vehicles to implement an ELT system by July 1, 2014.  DDI is looking forward to working with the DMV and NC Banks and other lenders to provide ELT services.

For more information about Premier eTitleLien®, please visit www.etitlelien.com. For more information about the North Carolina ELT program, visit www.ncelt.com.

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North Carolina ELT Bill Signed

July 23, 2013 - Raleigh, NC

North Carolina Governor Pat McCrory signed legislation requiring the NC Department of Transportation Division of Motor Vehicles to implement an "electronic lien system to process the notification and release of security interests and certificate of title data."  The bill includes a deadline that the new Electronic Lien and Title (ELT) system be implemented by July 1, 2014.

The bill clarifies the legal status of an electronic title for odometer disclosure compliance as well as any legal evidence for the existence of a lien.  It also grants the DMV options for developing or contracting the new system.  The DMV is required to report progress to the legislative oversight committee by October 1, 2013.

Participation in the program will be mandatory beginning July 1, 2015.  All individuals and lenders who normally finance motor vehicles will be required to participate in the NC ELT program.  The only exception is for those who perform less than five transactions each year.

DDI will post updates to our North Carolina Electronic Lien and Title site at NCELT.com.

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North Carolina Dealer Lien Fraud Has Unhappy Consequences

I just read an excellent editorial by the Times-News of Henderson, NC about an unfortunate fraud situation. The links to the editorial and the original article are below. Here's what happened. Facts are from the Times-News, inferences (infer) are mine.

November or December 2008: (infer) Cars America acquires a 2004 Honda Accord (probably a trade in). This car has a lien held by American General Finance Services.

December 2008: Richie Ritter purchases a 2004 Honda Accord from Cars America. He finances the vehicle with a $14,000 loan provided by the State Employees Credit Union (SECU).

December 2008: Dealers are normally responsible to complete the application for title (and note a lien) for the owner and especially the lender (SECU). This would include sending a check for the remaining balance of the loan to American General. American General would then release their lien and send the title to the dealer to accompany the application for a new title. This does not happen - American General does not receive a check for the balance of the loan.

December 2008: (infer) Somehow Mr. Ritter receives a plate and registration for the vehicle. This is problematic since instructions for registration require "Complete the title application (MVR-1), declaring all liens, signed in the presence of a notary" and should have been accompanied by the title received from American General.

December 2008 - January 2010: (infer) SECU never receives the title with their lien noted. American General at some point stops receiving payment on the loan and begins repossession process.

December 2008 - January 2010: Mr. Ritter makes loan payments to SECU totaling about $4000.

January 2010: (infer) American General eventually tracks down SECU and lets them know they are asserting their right as lienholder to repossess Mr. Ritter's Accord.

January 25, 2010: SECU informs Mr. Ritter that the vehicle is going to be repossessed by American General.

It looks like Cars America will end up defrauding American General, SECU, and Mr. Ritter, as none of them will likely fully recover what was lost. We're especially sorry for Mr. Ritter's loss since he is the ultimate victim here. This is one reason why state programs like ELT are so valuable. One of our customers told us of a similar situation in South Carolina, but because they combined vigilance with tools (ELT and Title Check) they were eventually able to fully recover the loss from the dealer.

We are hopeful that North Carolina will provide similar services. We'd love to assist lenders and vehicle owners to avoid similar fraud situations.

Sources:
January 27, 2010 story in Times-News
January 29, 2010 Editorial in Times-News

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