PHILADELPHIA (8/14/13)--The North Carolina Division of Motor Vehicles (DMV) will implement an electronic lien and title (ELT) program by July 1, 2014, as required by Senate Bill 407, signed by Gov. Pat McCrory.
Within a year of implementation, credit unions, banks and other automotive lenders in the state will begin to replace their paper based liens with an electronic exchange of data with the DMV.
Rather than using internal resources to fund the design, development and ongoing operation of ELT, the DMV retains the option to select third-party suppliers to develop and manage the system at no cost to the state, said VINTek, which assisted with passage of the ELT law in the state.
As the 10th largest state in terms of new annual vehicle/truck registration, the state can reduce operating costs, increase customer satisfaction and reduce fraud by eliminating paper vehicle titles with liens, said the Philadelphia-based provider of automotive collateral management, ELT services and direct finance processing.
"As North Carolina positions itself to become the 20th state to initiate ELT, we see confirmation of the growing interest in ELT at DMVs across the country," said Larry Highbloom, president of VINtek. "The North Carolina DMV and automotive lenders in the state can anticipate operational improvements and efficiencies, as well as reduced stress resulting from the reduction in paper titles."