Georgia publishes ELT rules in accordance with House Bill 865
PHILADELPHIA – VINtek, a provider of automotive collateral management, electronic lien and title (ELT) services and direct finance processing, announced it is assisting automotive lenders in Georgia with compliance with finalized ELT legislation.
In October, the Georgia Department of Revenue’s Motor Vehicle Division (MVD) published rules regarding the ELT portion of HB 865 that was passed in March 2012 and signed by the Governor in May. Any automotive lender recording more than 500 liens per year on Georgia vehicle titles is required to choose a vendor and implement an ELT program by Jan. 1, 2013. For lenders who receive more than 200 liens a year, the deadline is July 2013. All automotive lenders recording more than five liens in Georgia per year have until Jan. 1, 2014 to comply with the new ELT program.
ELT replaces paper titles with an electronic exchange of data between the Georgia MVD and an ELT service provider, acting as an intermediary on behalf of a lien holder. The program reduces costs with the elimination of paper and automation of a manual process. ELT also eliminates exposure to a growing area of fraud that involves falsified lien release letters. Perpetrators create fictitious lien release documents and receive clear titles from the DMV without lienholder knowledge. In an ELT program only the lien holder of record can electronically release its lien – the DMV will reject any attempted release of lien via a letter.
“We are encouraged to see Georgia make the move to paperless vehicle liens,” said Larry Highbloom, president of VINtek. “Georgia is one of many states that have realized the efficiencies of ELT for both their state governments and automotive lenders in 2012.”
In its 22nd year, Philadelphia-based VINtek provides automotive collateral management services, ELT 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 enables lenders to increase customer satisfaction and operating efficiency while simultaneously decreasing costs and errors associated with automotive 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.