NEWS: At a meeting last week with representatives from The League and two member credit unions, Wisconsin Department of Transportation (DOT) officials announced plans to require that all motor vehicle lien releases be submitted electronically, ending the optional use of paper forms.
The DOT will formally announce the change sometime soon, and it is not yet clear when it will take effect. The DOT said that the change will not require new rulemaking, because Wisconsin law already requires electronic lien processing. The League will alert you when a deadline is set.
As we explain in The League’s ii Release No. B044, statutory amendments made Wisconsin a “title to lienholder” state in July 2012. Those changes also required dealers, credit unions, and other lenders to electronically process motor vehicle liens. However, the DOT exempted those that added 48 or fewer liens in the previous calendar year, allowing them to use paper forms, instead.
Even if a credit union has been exempt from the DOT’s electronic processing requirement, it has still been encouraged to process lien releases electronically. Using paper forms costs extra surcharges and fees, as much as $25 in some cases.
The DOT said that the change is needed because the state has seen an increase in the number of imposters submitting forged lien release documents, allowing them to obtain clear titles on vehicles illegally.
One method of releasing the lien on a motor vehicle is by using The League’s Release of Lien - Motor Vehicle form (WCUL #82044). That form will be discontinued when the switch to all-electronic lien releases becomes official.
Credit unions with questions are invited to contact:
Maura Schifalacqua
Dealer & Agent Section Chief
WI DOT – DMV – Bureau of Vehicle Services
(414) 227-3288
In addition, this DOT webpage offers information about electronic lien processing options for financial institutions.
DOT to end use of paper forms for vehicle lien releases
Written by
in