PHILADELPHIA (8/9/12)--VINtek, a provider of automotive collateral management, electronic lien and title (ELT) services and direct auto finance processing, has been approved to offer its ELT services in Wisconsin to assist car 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. The change went into effect July 30.
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 the year, will support lien releases and title print and mail to functionality. Wisconsin is the 17th state to adopt an ELT program, said VINtek. 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 and VINtek, which acts as an intermediary for 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.