NEWS: In June, The League alerted you about the Wisconsin Department of Transportation’s (DOT’s) plans to require that all motor vehicle lien releases be submitted electronically, ending the optional use of paper forms.
The DOT has now announced that this change will take effect in early January 2025, requiring all non-exempt secured parties to release liens electronically. Paper lien releases will no longer be accepted.
DOT will send out a final notification in December regarding this change with an exact date of implementation. The League will publish a follow-up Courier when that announcement is made.
Exempt secured parties will not be affected by this update. A secured party is considered exempt if filing 48 or fewer security interests in a calendar year. If a credit union or other secured party is not sure if it is exempt, or if it has any other questions about this change, please email the DOT.
This change is being made is in accordance with Wis. Stat. §342.245 and Wis. Admin. Code Ch. Trans 148.03.
Meetings planned to discuss change
DOT will host two upcoming virtual meetings for interested parties to talk about these changes. Credit unions and vendors are welcome to attend.
Monday, Nov. 11: Teams meeting (11 a.m. to noon)
Meeting ID: 220 408 511 350
Passcode: uWEKQf
Dial in by phone
+1 608-571-2209, 214703598# United States, Madison
Phone conference ID: 214 703 598#
Monday, Nov. 18: Teams meeting (11 a.m. to noon)
Meeting ID: 237 549 972 149
Passcode: YvtU56
Dial in by phone
+1 608-571-2209, 321205070# United States, Madison
Phone conference ID: 321 205 070#
Frequently asked questions
The DOT has provided the following set of FAQs, with answers to questions that they have received about this change.
Paper titles
Q. How will releases on paper titles with liens be affected?
Q. Do paper titles with liens have to be released electronically and if so, what is the timeframe (and the process for how that paper title is converted to release electronically)?
Q. Will you allow ELTs to be papered out going forward or will they be required to release their lien to get a paper title?
A. Any non-exempt secured party will be required to release liens through an electronic processing system. The state of the title (paper or electronic) would not affect the release process or the mandate to release liens electronically. A paper title would not need to be generated when it is being held electronically prior to release. For exempt secured parties, lien releases issued on paper titles will need to be mailed into DOT for manual processing. Paper lien releases in the current format (letterhead, signed, vehicle description, etc.) will be accepted at local Customer Service Centers only for/from Secured Parties with an Exempt status. All secured parties have 30 days to clear their lien and release the title to the owner after the loan has been paid off.
Leased Vehicle Titles
Q. Any changes for Leased vehicle titles?
A. No. If a leased vehicle has a lien holder listed, electronic release of lien is required.
Lien release
Q. Are you going to require the lender to release the lien first?
A. Holding electronic titles and releasing liens electronically are two separate processes. With the exception of a payoff as part of the ownership transfer (dealer sales), the lien holder (lender) always needs to release the lien to allow the title to be issued to the owner. The state of the title, whether paper or electronic, would not affect the lien release process for the lender.
Printing
Q. Are you printing out titles?
A. If a paper title is requested with the lien still listed, DOT will print/mail a title.
Batch release
Q. Do we have to send the release electronically via batch file or via website like we do today?
Q. We already provide a notification of release on paper transactions by way of batch notification, should we anticipate any changes, or will this meet the requirements?
A. The procedure of releasing liens electronically will be required for all non-exempt secured parties for both electronically held and paper titles. Whatever your current method of electronic lien release, it may remain the same.