Thursday, October 8, 2009

What is ELT?

This post was updated!

An ELT program (Electronic Liens and Titles) allows messages related to titles with liens to be exchanged electronically, reducing filing and mailing costs. There is an immediate appeal to a state Department of Motor Vehicles (DMV), who no longer have to print and mail as many paper titles.

The benefits to lenders are greater. (Lenders place liens on vehicles with the DMV when making vehicle loans to their customers.) Both large and small lenders benefit from reduced filing and handling of titles. Receiving an electronic title from a DMV allows lenders to compare the title data with their lien application to ensure accuracy. Perfected titles arrive much quicker and mailing clean titles to customers after a lien is released is handled by each DMV automatically.

Currently, DDI works with 7 state ELT programs: Florida, Georgia, Ohio, Pennsylvania, South Carolina, Texas, and Virginia. Each state implements their ELT program differently depending on state laws. Several states, including FL, OH, and VA no longer automatically print paper titles for vehicle owners, preferring to leave titles in "electronic" format until a paper title is needed.