PHILADELPHIA--VINtek, a provider of automotive collateral management, electronic lien and title (ELT) services and direct finance processing, is assisting automotive lenders in Florida and Georgia in preparing for the implementation of expanded ELT programs in both states.
“By legislating an expanded population of paperless titles, both of these states have ushered in a more cost-effective, efficient and secure era in auto financing. ELT serves as the foundation for future vehicle title automation opportunities such as eliminating the paper title completely as has been done with stock certificates.”
The legislative expansion of an ELT program reduces the cost and exposure to fraud associated with paper vehicle titles with liens for automotive financiers, consumers, automotive dealers and the state motor vehicle department. Florida HB 1223 requires most, if not all lien holders to participate in the ELT program by Jan. 1, 2013. Georgia HB 865 authorizes the Georgia Department of Revenue to phase in a mandatory ELT program and the final rules outlining participation in that program will be published before Jan. 1, 2013.
ELT replaces paper titles with an electronic exchange of data between the states' DMVs and VINtek, acting as an intermediary on behalf of a lien holder. Between the two states, more than 800 lienholders have implemented ELT programs to leverage the benefits. The program reduces costs with 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. Currently, perpetrators can create fictitious lien release documents and receive clear titles from the DMV. In an ELT program only the lienholder of record can electronically release its lien.
"Georgia and Florida have joined a growing list of states that recognize the benefits of ELT to government budgets and automotive financiers," said Larry Highbloom, president of VINtek. "By legislating an expanded population of paperless titles, both of these states have ushered in a more cost-effective, efficient and secure era in auto financing. ELT serves as the foundation for future vehicle title automation opportunities such as eliminating the paper title completely as has been done with stock certificates."
About VINtek
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 three U.S. patents on automotive lien processes and is the recipient of numerous industry awards for its processing services. For more information, visit Vintek.
