News in 2014

Litigation is costly. It takes time your company could use to make money on productive things, and exposes you to the whims of a legal system that sometimes makes no sense. If you can avoid it, you should. That proactive approach is why I recommend shredders, recyclers or anyone purchasing a used automobile for recycling do a national title and theft check before buying, dismantling or crushing a vehicle.

State regulations place the burden to determine if a vehicle is stolen on the vehicle purchaser. Finding this information – in real time – is daunting, and often businesses only have access to reports for the state in which they are doing business. As a NMVTIS consumer access provider and consolidator, Auto Data Direct (ADD) has solved both problems by giving qualified businesses real time, 24-hour access to a stolen check from a national theft database. This all-in-one compliance tool is an easy and cost-effective way to reduce the risk of litigation.

When a vehicle you’re purchasing comes with a title, it is helpful to verify that the title presented by the seller is the current title, and the most recent one that was issued. That helps to avoid a situation where you might be presented with an outdated or duplicate title, and a newer title exists (creating the possibility that a new title might have liens filed against it that could come back to haunt you).

Additionally, a shredder or recycler must report the vehicle they purchase for recycling to NMVTIS, unless he can show that the vehicle has been previously reported with an end-of-life disposition. ADD’s title history and theft check can also instantly determine a vehicle’s NMVTIS reporting history. If the vehicle has not been reported as required, the recycler can easily make the end-of-life report that will brings the business into federal compliance.

Shredder and recyclers can use this inexpensive (less than $3.00 for full- service ADD account holders) all-in-one compliance check to determine, in real time:

1. The last state of title and the date of title issuance
2. Whether the vehicle has been properly reported to NMVTIS
3. If the vehicle has an active theft report

As a secondary check, ADD can also provide the real-time motor vehicle record (containing owner names and lienholder information) in more than 30 states. This state-specific report allows a buyer to confirm the ownership details and avoid any claims for title liens.

The benefits are obvious. First and foremost, by obtaining a 50-state stolen check, your company demonstrates a good faith effort to determine if the vehicle has been reported stolen. Even one such charge is a nightmare that can cost tens of thousands of dollars in legal fees and wasted time.

Second, by verifying the end-of-life NMVTIS reporting status of the vehicle, your company avoids the $1000 per-vehicle fine that can be issued if a vehicle is not reported according to the federal regulations. If the title and theft check shows that the reporting hasn’t been done, you can immediately report the vehicle for free, bringing you into NMVTIS compliance at no additional charge.

Finally, if you choose to pull the real-time motor vehicle record from the current state of title, it should ferret out any liens that may be outstanding, avoiding the situation where your company is sued for disposing of a lender’s collateral without satisfying the lien.

In my view, ADD’s all-in-one compliance tool that verifies current title, NMVTIS status and checks for stolen reports is a cost effective way to reduce your company’s exposure to civil and even criminal liability when purchasing a used car for recycling or dismantling.

The compliance tool is available to all Auto Data Direct customers, and volume discounts are available. For more information visit ADD123.com and look for the Auto Recycler Services link.