News in 2015

On June 8, 2015 more than 700 businesses in Florida received an email from the Department of Justice indicating that, while the business had registered for a National Motor Vehicle Title Information System (NMVTIS) reporting identification number, no salvage records had been submitted using the assigned reporting ID.

The email briefly explained the federal requirement that all businesses that handle five or more junk or salvage vehicles must report those vehicles to the NMVTIS database, and included a detailed attachment explaining NMVTIS, the information required to be reported and the potential fines for non-reporting.

As one may guess, the phones for Auto Data Direct’s customer service stayed busy answering questions and helping businesses better understand why they received the letter and what they needed to do to become complaint and get off the “non-reporting” list.

It is important to remember that a NMVTIS ID number is like a social security number or FEID/EIN number - a business should not have more than one NMVTIS ID (per physical location). Often, a “parent” company will have a single NMVTIS ID and will use it to report for each of its locations, but some states, such as Georgia, require a NMVTIS ID each physical location if the business has multiples. BUT, businesses should not have multiple ID’s for a one business at a single physical location.

This is important to remember as many states have made a NMVTIS ID a mandatory part of the salvage dealers license application and license renewal process (Florida is one). Occasionally, due to employee turnover or simple forgetfulness, a business with an existing NMVTIS ID issued by one data consolidator will get a renewal notice, see that they need to provide a NMVTIS ID, and will create a second NMVTIS reporting account with a different data consolidator and request a second ID. This scenario can cause problems at both the state licensing and federal reporting levels.

Anytime there’s an enforcement effort by DOJ/BJA, more businesses apply for NMVTIS IDs and more vehicles are reported to NMVTIS by affected businesses. Similar to the significant increase in reporting ADD experienced after the Alabama enforcement effort last year, Auto Data Direct saw a 25% increase in salvage vehicle reported in the week after the recent Florida email. DOJ/BJA recognizes that even a small enforcement mailing produces substantial increases in compliance.

In related enforcement news, in the June 15th NMVTIS advisory board conference call, DOJ/BJA shared that during a recent visit to California, enforcement officials made site visits to check NMVTIS compliance of businesses in the Los Angeles area. DOJ also indicated plans for more NMVTIS site inspections in selected areas over the coming months. Also on the horizon, DOJ/BJA indicated that there are plans to do similar non-reporting enforcement mailings on additional states in the near future.

For more information, email ADD or call one of our friendly and knowledgeable customer service representatives at 855-300-3455 . Se habla español.