Tuesday, January 5, 2010

Louisiana: ELT now required

The Governor of Louisiana signed Senate Bill 373 into law on July 2, 2008 requiring the Office of Motor Vehicles (OMV) to require participation in the Electronic Liens and Titles program for all lenders by January 1, 2010. The OMV is now requiring this, but allowing a grace period through June 30, 2010.

From their site:

Louisiana Attorney General’s Opinion No. 09-0250 advised that as of January 1, 2010, it is mandatory for financial institutions, lending institutions, etc., to participate in ELT.

DPS does not have the authority to delay the implementation of ELT. Act No. 689 became effective August 15, 2008, and DPS has been working on adjustments to the system to better accommodate industry since that time. However, DPS does realize the burdens to the industry associated with fully implementing ELT. While DPS cannot delay implementing the ELT program, DPS does intend to not hamper lien recordation and titling of motor vehicles in this state. It is the intention of DPS to accommodate such issues through continuing to issue paper titles until June 30, 2010 in situations where lenders are working to become compliant with the mandatory ELT program.

DDI is excited to be working with a Tag Agent in Louisiana (which is required; see here for a list of tag agents working with ELT) allowing us to offer Premier eTitleLien™ to Louisiana lenders as well as integrating LA electronic titles for our current customers.

Although the OMV has had an ELT program for a while (legislation allowing it's development was passed in 1999), it has always required participation via registered tag agents, and has never caught on with the agents or lenders. Now that the program is fully available, Louisiana banks, credit unions, dealers, and other lenders can benefit from ELT.

Signing up with DDI is simple: our website has application instructions for Louisiana and the other states where we offer ELT.

Image: Buying a New Car in Louisiana