When the Arizona program went mandatory this past May 31, 2010, two things happened:
- The Arizona DOT Motor Vehicle Division stopped printing titles with liens
- MVD and 3rd party offices began requiring lienholders to be active participants in the ELT program before they would accept a Title and Registration Application listing that lender as the lienholder.
We did expect the broad impact this has had, from traditional lenders (banks and credit unions) to dealers providing financing and even non-lenders like bail bond companies. Arizona has been very consistent in enforcing participation in the ELT program.
In addition to the large number of Arizona lenders, we have been getting calls from around the country. I spoke with callers just today from Illinois, New York, and Maine. Any lender with a customer in or moving to Arizona is being required to sign up with an ELT service provider like DDI.
Reactions to the news that they have to find a provider and register as a lienholder varies. Some lenders are so unhappy with having to comply with something new they refuse to offer loans on vehicles titled in Arizona. (Bad news if you're transferred there and your lender won't let you title your car.) Others seem unfazed.
ELT is increasing in popularity, not decreasing, as more states implement new programs and require participation.
Image: Cactus4 by Fishing Cactus