ELT is the acronym for Electronic Lien and Title which is one of the various programs offered by Department of Motor Vehicles (DMV) in some of the states. ELT is basically exchange title and lien electronically, in lieu of paper titles, as used normally.

Although the title applications for car and other vehicles will be submitted and processed as per state regulations as for paper titles, but the difference is when the lien is paid completely, and the lien holder’s name removed from the vehicle title, an electronic message is sent across to the person. With titles getting electronic, not only does it streamline DMV services but ensures less errors and cuts down on filing of paperwork.

Thus, if you are wondering why the program is being adopted quickly by different states, the major benefits include:

  • Quick data exchange

 

  • Enhanced accuracy of data
  • Lower tying errors
  • Low mailing and printing costs
  • Reduced cost of paper
  • Increased security

 

Some of the states that offer Electronic Lien and Title (ELT) include Louisiana, Arizona, California, Texas, Hawaii, Virginia, Wisconsin, Utah, Kansas, New York, Ohio, South Carolina, Idaho, Massachusetts, Pennsylvania, Nebraska and Washington.

Usually it is seen that the lender benefits the most with title loans and some of the advantages that the lien holder has with ELT include:

  • As all titles are in electronic form, the lender can reduce staff that was previously needed for retrieval and filing of standard paper titles
  • Reduction of fraud
  • Less space needed for storing paper titles
  • Dealer transactions becomes faster and easier

With electronic transactions, ELT transactions help the jurisdiction for sending messages electronically to the holder of lien. When there is a lien recorded on the title record, the lien-holder will receive a message. Additionally, lien-holders get a chance to send the jurisdiction messages when the lien release transaction is completed and paid off. This helps in faster transmission of paper titles to the owners by the jurisdiction.

To participate in the ELT program, you will need to fill in and submit the Electronic Lien and Title Intake form along with the Service level agreement forms. After the signed agreements are submitted, you will be given a 2 –digit number. It takes about a week to 10 days after the receipt that the release of lien is provided electronically by the DMV. After that the lien is removed and the paper title is given to the dealer.