Sunday, July 4, 2010

Mandatory ELT: The New Trend

Here at Decision Dynamics' headquarters, we've been noticing a trend in electronic lien and title (ELT) programs. Not only are more states developing or revamping their programs, but the number of states requiring participation is on the rise.
  • Pennsylvania: July 2008
  • Louisiana: January 2010 (grace period ended June 30, 2010)
  • Arizona: May 31 2010
  • Nebraska: January 2011 (participation not mandatory, but no titles with liens will be printed)
  • California: January 2012
In addition, both South Carolina and Massachusetts had mandatory-ELT legislation introduced in 2009-2010 that has not yet passed.

In April, Automotive news published a story by Jim Henry on this issue headlined "E-titles and e-liens slowly e-liminating paper docs". I'm quoted:
Not only is it more convenient, but also in past, electronic made everybody nervous. "If I've got it on paper it's real." But the way we store data now there's an electronic trail and it's more reliable than paper titles.

The mandatory participation requirement for ELT is also forcing lenders from across the nation to participate. With more states poised to require participation, this trend will continue to gain momentum. And that's good.

Image entitled "Never Easy Going Up" by Lachlan McDonald