New language requirements for auto loan payoff letters
Published by: Jared Weiser
December 18, 2024 | Government Affairs
Earlier this year, the League worked with interested parties to repeal language passed in the most recent state transportation budget requiring lenders to provide motor vehicle purchasers with the option of receiving a physical certificate of title following full payment of the loan. Ohio Senate Bill 94, passed last summer, changed this requirement to a written notice (physical or electronic) to the motor vehicle owner, referring them to the Ohio Bureau of Motor Vehicles website for information on titling options. The lender may send the notice when the owner enters into the loan (typically at the time of purchase) or when the loan is repaid. The new requirement is effective Jan. 1. This legislative fix represents a significant improvement for credit unions and will eliminate the ambiguity of, and cost associated with the previous law.
