PHILADELPHIA (6/18/12)--VINtek, a provider of automotive collateral management, electronic lien and title (ELT) services and direct finance processing, is working with auto lenders in Florida and Georgia to prepare for the implementation of expanded ELT programs in both states.
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 nearly all lien holders to participate in the ELT program by Jan. 1.
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.
ELT replaces paper titles with an electronic exchange of data between the states' Department of Motor Vehicles and VINtek, acting as an intermediary on behalf of a lien holder.
Between the two states, more than 800 lienholders have implemented ELT programs. The program reduces costs with the elimination of paper and automation of a manual process. It also eliminates exposure to fraud that involves falsified lien-release letters. 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."