League working to fix auto title issue
Published by: Jared Weiser
May 31, 2023 | Government Affairs
The League is working to fix a newly required notification process involving auto titles that was included in the State Transportation Budget. After an auto loan is paid off, purchasers can now choose whether to receive the certificate of title physically or electronically.
“Sec. 4505.131. (A) Any person that purchases a motor vehicle that is financed shall choose, at the time that the security interest financing the motor vehicle is fully discharged, to either receive a physical certificate of title to that motor vehicle from the secured party or to have the certificate of title remain electronic.
(B) Upon a secured party’s receipt of good funds in the correct amount discharging the security interest financing the motor vehicle, the secured party shall send the purchaser a written form. The purchaser shall complete the form to affirmatively choose whether the purchaser wishes to receive a physical certificate of title or to have the certificate of title remain electronic. The form may be electronic or nonelectronic…”
Absent a legislative fix, this language will go into effect on June 30, 2023. The League sent a letter to the Ohio General Assembly as part of a broader coalition asking for a repeal of the language. A budget amendment was also submitted to study the issue, repeal the language, and waive any unpaid penalties incurred for violating Sec. 4505.131.
The bottom line is that the above language lacks clarity and could significantly delay member service. There are also unavoidable county fees when processing a title, which could increase costs for all members. Furthermore, this language does not accommodate a credit union not using the state’s Electronic Liens and Titles (ELT) program. Be sure to check Huddle for updates on this issue.
Contact Jared Weiser for questions or assistance.