CU Times: Title Fraud Makes Case for ELT

Back in April 2013, the Credit Union Times published an article entitled "Digital Title Fraud Fight Makes Case for ELT" by Michelle A. Samaad. The article begins by discussing a vehicle title fraud incident: "If ever there was a case for moving from paper vehicle titles to an electronic system, advocates might point to a recent occurrence in Michigan."

Trying to reduce fraud has been a key part of our Electronic Lien and Title (ELT) solution, Premier eTitleLien™ from the initial design in 2005.  We've seen evidence of that with our customers, as the article quotes DDI's president, Glenn Thames.

Thames recalled how one credit union in South Carolina was able to uncover fraudulent title activity at a dealership. While the dealer was charged and ended up going to jail, the credit union lost $50,000 and another was bilked out of $200,000.

In the roughly 20 states that allow it, Decision Dynamics provides VIN inquiry access to its customers, Thames said. The company also does lien alerts so that pending lien holder notifications in a credit union’s system are flagged. Financial institutions can tell if scammers are trying to make the rounds to obtain loans.

For more information about Lien Alerts, Title Inquiries, and other fraud prevention measures in Premier eTitleLien™, please contact DDI.

Image above is a 1918 photo of Bobby the French Bulldog riding in an automobile.

Continue reading CU Times: Title Fraud Makes Case for ELT

South Carolina: SC Bankers Association and ELT

DDI representatives (not me, unfortunately) will be attending the 2012 South Carolina Bankers Association (SCBA) Annual Convention and Trade Show in Sea Island, GA on June 10-13. As SCBA associate members and preferred vendors, we will be promoting the SC Electronic Lien and Title program as well as answering any questions about the future of ELT in SC and across the country.

Legislation has been proposed now in three different sessions (2010-2012) that would require lenders to participate in the ELT program. Although yet to be approved by the legislature, we understand that the DMV is interested in the cost-saving measures that a mandatory program would allow.

DDI has worked closely with the SCBA since 2006 when we worked with SC lenders to develop our ELT system, Premier eTitleLien™. Because of that partnership, we were privileged to work with the SC DMV to develop their ELT program. Those initial partnerships with lenders like the South Carolina banks are still some of the most valuable sources of input, even as we have expanded our product to a solution for all ELT states and non-ELT states and territories.

Image above is from The Georgia Sea Island Singers.

Continue reading South Carolina: SC Bankers Association and ELT

States Planning to Compel 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, and States Planning to Compel Participation in ELT (this post).

Which states have said they intend to compel participation?

• Florida
• Massachusetts
• South Carolina
• South Dakota
• Texas

Florida has indicated to us in person as well as through legislation that their long-term plan has been to require participation. See a further explanation on States Compelling Participation in ELT post.

Although the MA RMV has indicated to us that they do not have plans to make their ELT program mandatory, the Massachusetts legislature has (at least twice) introduced legislation requiring participation.

South Carolina has had legislation introduced twice to allow the DMV to require participation. The South Carolina DMV has indicated that it intends to make the program mandatory only after developing a plan with industry stakeholders.

In our discussions with South Dakota about their new (2012) ELT program, they mentioned that their plans are to make the SD ELT program mandatory from the beginning using a no-printed-titles-with-liens policy.

Texas passed legislation in 2011 that allows the DMV to make the program mandatory. They have indicated to us in person that they intend to gather feedback from industry partners before implementing any requirements.

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.

Image above is from Kazoobie Kazoos.

Continue reading States Planning to Compel Participation in ELT

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.

Image above is United States Map Bookshelf.

Continue reading Electronic Title States

Changes to the South Carolina Title Application

In Premier eTitleLien™ we support the generation of title application forms for our ELT states and keep them up to date with changes implemented by the state. South Carolina recently changed their Title Application form (SC Form 400) as follows:

1. Section numbers have been replaced with section letters so as not to confuse requirements listing with the numbers at the top of the form.
2. Applicants may indicate whether the transaction should be expedited at the top of the form.
3. Expedited applications can be requested if the transaction needs to be completed within three (3) business days. This is not required for expedited electronic Release or Request Paper Title transactions.
4. The Primary Owner’s address was added before RESIDENCE STREET ADDRESS.
5. In the lien holder’s address section, indicate if the lien holder is a ELT lien holder by checking the appropriate checkbox beside the lien information. This is automatically checked for Form 400s printed through Premier eTitleLien™.
6. If there is no lien on the vehicle, enter None in the lien section.
7. The lien release has been eliminated from the back of the form. Financial institutions must submit the lien release on company letterhead with the vehicle’s description, or use Form 450, Satisfaction of Lien.
8. Owners must certify by signature for the Sales Tax Exemption in Section G;
9. Owners must certify the sales prices by initialing Section I; and
10. The Federal Motor Carrier Services acknowledgement statement has been added to the signature line statement (Section L).
    

Image is a Lexus SC430 from "Ever Seen a Carolina Herrera SC430? Wow!!!"

Continue reading Changes to the South Carolina Title Application

Recommendations when Applying for a Lien in South Carolina

Based on feedback from customers plus our own experience and interaction with the SC DMV, we've put together some suggestions for lenders when applying for a lien on a title in South Carolina.

1. Instead of having the customer directly sign the Form 400 (SC's title application), obtain a limited Power of Attorney. This will help in case resubmissions (lost mail?) are required.

2. Carry your paperwork to a DMV office. You will get either immediate (if you wait on the paperwork) or generally next-day response to your application. Problems with the application are reported to you immediately. There is no faster way to get a lien recorded.

For absolute best results, take your title application(s) to one of the five dealer central SC DMV locations. These are the ideal places to turn in paperwork and generally provide better service for ELT transactions. Transactions can be provided in a batch with a cover sheet listing the individual vehicle numbers (VINs). From the list of office locations (http://www.scdmvonline.com/DMVNew/offloclist.aspx) choose Dealer Central from the Services dropdown.

Several of our customers use a courier service to deliver title applications to a DMV office.

3. Mail your paperwork to Blythewood using a tracking number. Any kind of minimal delivery confirmation will allow you to be certain your application was received by the DMV. Consider recording the tracking number as part of the lien history in Premier eTitleLien™.

4. If you don't (or can't) take a title application to a DMV office and don't (or can't) use some delivery confirmation, keep track of the mailing date and delivery method (including who posted it). Consider recording these details as part of the lien history in Premier eTitleLien™.

At our last quarterly meeting with the DMV, they told us they would begin providing receipts for items that had been received at the Blythewood office. This would bring the feedback provided there in line with the feedback you get at a field office. DDI will continue to work with them to improve document tracking.

Image: The Palmetto State Glove Box Guide to Bar-B-Que

Continue reading Recommendations when Applying for a Lien in South Carolina