News in 2016

For those in the salvage industry, it seems that information on enforcement of NMVTIS requirements is slow in coming and low-key when it is released. As most of you know, I have been at conferences and tradeshows all around the country since the NMVTIS program started in March of 2009. I have tried to help keep the affected industry members informed of activities and requirements pertinent to their business, and tried to explain why the information is needed and how it is being used. I can’t tell you how many times I get asked, “When will DOJ start enforcing the NMVTIS rule?” Up to this point, I’ve been able to share that I knew the department was looking into compliance and had identified some violators. Now, however, I can share some specific information on DOJ enforcement activities and how you can keep current with the status of its ongoing efforts.

In early May, the DOJ asked AAMVA to post on the official NMVTIS website the penalties it has imposed on companies for failure to report to NMVTIS properly and promptly. At this point, eight companies have settled on fines to be imposed with those fines totaling over $2.1 million. All of the fines imposed to date have been settled out of court. More information regarding the fines levied is available at VehicleHistory.bja.ojp.gov. My understanding is that DOJ is also continuing to review ways it can better enforce NMVTIS compliance.

Because of the impact NMVTIS information has had on identifying unsafe vehicles, more and more states are looking at incorporating NMVTIS reporting at a state level. Beginning July 1, 2016, auto dismantlers, auto recyclers, shredders, and secondary metal recyclers in Tennessee will have to report the salvage vehicles, within 24 hours of purchase, to the state. Auto Data Direct is the sole provider of this service and the affected businesses will need to report through ADD. By reporting through ADD, the affected businesses will complete their state requirements and all required NMVTIS reports will be made on behalf of the reporting businesses. The good news for industry members is that this service is being provided at no cost to the reporting entity. The reporting businesses will need to provide a little more information than they were required to compared to the standard NMVTIS reporting; but with this system they will satisfy both their state and federal requirements and it’s free! If a company is a rebuilder, or reseller of salvage vehicles, they may need to complete an additional report, but these reports can be made through the same process. As part of the Tennessee law, the reported vehicles will be checked to verify they are not stolen and if a stolen vehicle is reported, the reporting business will be notified. Also with the law change businesses in Tennessee can purchase vehicles without title if they are at least 12 years old or older and they complete the Title Substitution Form, report it, and keep it on file.

Georgia has had a similar process active since July of 2012 and thanks to help from your associations and their members, more and more states are looking at similar programs.

With all the issues around salvage vehicles like VIN cloning, states want information on these vehicles faster than the federally required 30 day reporting. The models in Georgia and Tennessee help the states clean up records; help law enforcement find problem vehicles; make more information available to consumers on vehicles; and simplify the reporting demands on affected businesses while helping with some of the costs of ensuring compliance with state and federal laws.

If you have any questions, please email ADD or call one of our friendly and knowledgeable customer service representatives at 855-300-3455 . Se habla español.