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DOJ Targets Non-Reporting Businesses with NMVTIS Compliance Mailing

for Auto Dealers, Insurance, Mechanic / Body Shop, Salvage and Wreckers on Tuesday, October 25, 2011 by Auto Data Direct

The Department of Justice mailed out [thousands of letters](https://www.add123.com/sites/default/files/DOJ-enforcement- OCT2011.pdf) to business owners who are not yet compliant with the National Motor Vehicle Title Information System (NMVTIS) salvage reporting requirements. The letter makes clear that all businesses handling five or more junk or salvage vehicles per year must reported specific information about those vehicles to the national database, and enforcement is ongoing . Reporting is required in every state, and affected businesses include:

  • Vehicle recyclers
  • Scrap vehicle shredders
  • Scrap metal processors
  • Pull- or pick-apart yards
  • Salvage pools
  • Salvage auctions
  • Auto brokers
  • Tow companies
  • Used auto dealers
  • Vehicle re-marketers
  • Body shops
  • Auto wholesalers
  • Auto import/export companies

For each junk, salvage or total loss vehicle handled, businesses must provide:

  1. The business name, address and contact information
  2. The VIN
  3. The date the vehicle was obtained
  4. From whom the vehicle was obtained
  5. If the vehicle was or will be crushed, sold or used for parts
  6. Whether the vehicle is intended for export.

Read the [full letter](https://wwwc.add123.com/sites/default/files/DOJ- enforcement-OCT2011.pdf).

NMVTIS reporting is done through approved NMVTIS service providers. There are four reporting methods available, including Auto Data Direct’s free NMVTIS reporting service. Visit ADD’s website www.add123.com for information on reporting details and service options.

Enforcement

According to the Department of Justice compliance mailing, enforcement efforts will focus on reporting since April 2009 (when requirements became mandatory) as well as current reporting. From a DOJ presentation at a recent automotive recycler convention, enforcement begins with the issuance of a non-reporting warning letter that gives the affected business 30 days to become fully compliant with NMVTIS regulations. If the business is not fully compliant (dating back to 2009) within 30 days, a Notice of Penalty letter is mailed, indicating the fine assessed.

__“Failure to report to NMVTIS as required may result in assessment of a civil penalty of $1,000 ** per violation**. Failure to report 100 junk or salvage automobiles could result in a civil penalty of up to $100,000. (…) DOJ is not obligated to perform a site visit or provide additional time to provide data or correct reporting deficiency before imposing any penalty.” __

To notify DOJ of an affected business that is not currently reporting to NMVTIS, email [nmvtis@usdoj.gov](mailto:nmvtis@usdoj.gov?subject=Non-reporting Referral) with the subject line “Non-reporting Referral” and include the non- reporting business information (business name, address, location).

More information is available on the NMVTIS website ar vehiclehistory.bja.ojp.gov, and from approved service providers.