PHILADELPHIA – VINtek, a provider of automotive collateral management, electronic lien and title (ELT) services and direct auto finance processing, announced that it has been approved to offer its ELT services in Wisconsin to assist automotive lenders with the transition to electronic titles in the state.
As a result of Wisconsin Act 32 passed in 2011, any automotive title with a lien will be sent to the lienholder, not the borrower, as was previously the practice. This change went into effect on July 30, 2012. The first phase of the implementation supports electronic delivery of titles with liens for lenders who sign up with an authorized service provider such as VINtek. Lienholders who sign up for ELT can avoid receiving paper titles and instead will receive a digital record with the lien and title information. Phase two, which is scheduled for implementation by the end of 2012, will support lien releases and title print and mail to functionality. Wisconsin is the 17th state to adopt an ELT program. Nationwide nearly two-thirds of titles issued with liens are in states that can issue electronic liens.
ELT replaces paper titles with an electronic exchange of data between the Wisconsin Department of Transportation (WisDOT) and VINtek, acting as an intermediary on behalf of a lienholder. The program reduces operating costs through the elimination of paper and automation of a manual process. It also eliminates exposure to a growing area of fraud that involves falsified lien release letters.
“We are pleased to see an increase in states’ interest in the benefits of ELT for their own budgets and lenders’ operations,” said Larry Highbloom, president of VINtek. “Wisconsin is the latest state to initiate this program and VINtek is helping automotive lenders in the state make the move to more efficient and cost effective lien and title processing. The financial industry continues to focus on removing paper from operations and auto financing is no exception.”
In its 22nd year, Philadelphia-based VINtek provides automotive collateral management services and direct auto finance solutions for banks, credit unions and other auto finance institutions. Through its offices in Philadelphia, Las Vegas, Sacramento, Calif., and Troy, Mich., VINtek helps lenders increase customer satisfaction and operating efficiency while simultaneously decreasing costs and errors associated with collateral management through the introduction of innovative consumer loan servicing technologies. VINtek holds two U.S. patents on automotive lien processes and is the recipient of numerous industry awards for its processing services. For more information, visit www.vintek.com.