The Industry's Leading Source For F&I, Sales And Technology


Texas Bill Moves State to Electronics Lien and Titling

July 12, 2011

PHILADELPHIA — Signed by Gov. Rick Perry on June 17, Texas House Bill 2575 authorizes the Texas Department of Motor Vehicles (DMV) to develop rules that will result in the holding of automotive liens electronically to reduce cost and exposure to fraud associated with paper vehicle titles with liens in the state.

The legislation goes into effect Sept. 1, 2011, at which time the Texas DMV may begin requiring participation for certain categories of lien holders. Participation for institutions recording less than 100 security interests in a motor vehicle a year is voluntary.

Electronic lien and titling replaces paper titles with an electronic exchange of data between the Texas DMV and VINtek, which worked closely with legislators in drafting the legislation. Aside from cutting costs, ELT will help reduce the state’s exposure to fraud due to falsified lien release letters.

“We are thrilled to see Texas join the ranks of Arizona, Pennsylvania, California and Louisiana in moving lien holders to electronic liens with the passing of HB 2575,” said Larry Highbloom, president of VINtek. “Implementing an ELT program will assist Texas in reducing pressure on an extremely tight agency budget.”

Texas handles the second highest vehicle title volume in the country and the state implemented a voluntary ELT program in 2009 to help reduce DMV costs, according to VINtek. In 2010. VINtek helped 50 financial institutions in Texas move to electronic titles and currently manages ELT for more than 200 Texas financial institutions and approximately 2,000 lenders nationwide.

For more information, visit

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  



Missouri Gov. Signs Service Contract Law

Aimed at telemarketers of vehicle service contracts, Senate Bill 132 was signed into law last week and will provide further oversight on service contract sales in Missouri.