PHILADELPHIA (11/19/12)--VINtek, a provider of automotive collateral management, electronic lien and title (ELT) services and direct finance processing, is assisting automotive lenders, including credit unions, in Georgia with compliance on finalized electronic lien title (ELT) legislation.
The Georgia Department of Revenue's Motor Vehicle Division (MVD) published rules in October regarding the ELT portion of HB 865, which was passed in March and signed by the Georgia Governor Nathan Deal in May. Automotive lenders recording more than 500 liens a year on Georgia vehicle titles are required to choose a vendor and implement an ELT program by Jan. 1, said VINtek.
For lenders who receive more than 200 liens a year, the deadline is July. 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 by eliminating paper and automating 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, said VINtek.