As several states make the transition away from paper vehicle titles to electronic lien and titles, at least one firm said it is experiencing the impact.
VINtek, a provider of collateral management and ELT services and direct finance processing for auto lenders, said it experienced a 28% increase in new customer signings in 2012. The new clients represent an estimated 30% increase in recurring revenue over client sales in 2011, the Philadelphia-based firm reported.
Florida and Georgia’s ELT compliance deadline went into effect Jan. 1. There are 18 states that have implemented ELT, according to VINtek President Larry Highbloom.
VINtek said in anticipation of the impact of Georgia legislation requiring lienholder participation in the Georgia Department of Revenue’s ELT program in 2013, the company signed eight credit unions in the state. VINtek said it also experienced significant client growth in Florida with that state’s electronic move.
According to the Florida Department of Highway Safety and Motor Vehicles, lenders must contract with an approved service provider for the ELT transition. Among them are VINtek, American Security Insurance Co. in Duluth, Ga.; Auto Data Direct Inc. in Tallahassee, Fla.; Decision Dynamics Inc. in Lexington, S.C.; FDI in Sacramento, Calif.; and PDP Group Inc. in Hunt Valley, Md.