News in 2017

Recent articles I have written focused on the federal National Motor Vehicle Title Information System (NMVTIS) rules intended to be refreshers about the national reporting requirements. Since there have been some changes at a state level and some confusion, I hope this helps to clarify the NMVTIS system and reporting process as a whole.

The NMVTIS database is intended to show the “birth-to-death activities of a vehicle.” It contains state title and salvage information on a vehicle and can show last state of title, mileage through time, salvage reports, brands issued and other very useful information that can help a buyer or business understand what has happened to a vehicle over its lifetime.

NMVTIS covers vehicles in the continental US, Hawaii, and Alaska. It contains information on cars and trucks under 10,000lbs as well as some motorcycles and recreational vehicles. This information comes from the states DMVs and reports made by the insurance and salvage industry. It is the only database of its kind, and until its creation, much of the salvage information and brand information only resided at a state level, if at all, and users would have to know which states to access and then access those states directly to obtain it. Now it’s all in one database. NMVTIS does not contain personal information like owner name/address, lien holder or lien details, or title details like title number, liens, title issues, insurance provider. According to AAMVA (the NMVTIS database administrator), 94% of all vehicles in the US are represented in the database.

Currently, salvage businesses in 48 states must report vehicles they purchase and sell within 30 days to NMVTIS. If they do not, they could be subject to a $1,000 civil penalty per violation. A salvage business includes any business or individual that buys/sells five or more salvage vehicles within 12 months. Over $2M in penalties have been assessed to businesses that have not reported salvage vehicles correctly and promptly, and more fines are being negotiated. Salvage businesses must report through a data consolidator (Auto Data Direct, ISO, or Audatex) or directly to AAMVA.

Only in Georgia and Tennessee will a state report to NMVTIS on behalf of a salvage business, as long the businesses report to the state within the allotted time constraints. In these two states, the businesses must report through the states' contracted consolidator, Auto Data Direct, to be compliant with both the state and the federal requirements. If a business physically located in one of these two consolidated reporting states submits NMVTIS data through one of the other consolidators or AAMVA, the business will be federally compliant but will not be compliant with their state. The businesses in Georgia must report within 48 hours of purchase/sale and in Tennessee, they must report within 24hours of purchase/sale. Presently Georgia does not have a state penalty for non-compliance but Tennessee does ($1,000/per violation). For businesses in Georgia and Tennessee there is no fee for reporting, and when the report is made through the state’s contracted consolidator, both the state and federal requirements are met. To do this, businesses must have an account with Auto Data Direct. There is not yet automatic reporting through management systems (i.e. Pinnacle, Hollander, Powerlink, CarPart, CRUSH, etc.) available for Georgia and Tennessee. Several management systems have built a batch reporting process but this process still requires the business to log in to their Auto Data Direct account and upload the “batch” file. Auto Data Direct has the ability to accept automatic reporting but so far has been unsuccessful in getting the management systems to build this feature. I have had several requests for this and I ask that each business contact their management system provider to develop the process…we will work with them to create a solution.

Thanks to the efforts of the state and National ARA associations, soon non- business individuals buying salvage vehicles will also have the ability to report to NMVTIS. This will greatly increase compliance and provide much better data to consumers and businesses alike. For more information about NMVTIS and the benefits it has generated, you can go to vehiclehistory.bja.ojp.gov or www.add123.com/nmvtis.

NMVTIS has proven to be a very useful and powerful tool in reducing fraud and other illegal activities for the states and businesses alike, and it will only get better as compliance increases and more success stories become public knowledge.