News in 2010

NMVTIS compliance audits have begun in conjunction with the CARS program, and the Department of Justice has mailed out thousands of letters explaining the mandatory reporting requirements for businesses that handle junk, salvage and total loss vehicles. Learn how to verify your compliance, and make sure your NMVTIS reports being received by the national database.

Since March of last year, there has been much talk of NMVTIS (National Motor Vehicle Titling Information System) and its reporting requirements for recyclers. The big difference in NMVTIS and other programs is that this time, the reporting is done on the federal level. NMVTIS requirements mandate reporting by any business buying or selling more than 5 “total loss” or salvage vehicles per year, and includes insurance companies, salvage pools, recyclers, towing companies, export wholesalers, total loss wholesalers, crushers, and shredders to name a few.

NMVTIS compliance audits have begun in conjunction with the CARS program. Often, a company will think that they are reporting through their state or through their management system, only to find out they are not compliant when they get a call from an enforcement officer. It is important to understand that according to the federal rule, it is the business' responsibility to make certain that the vehicle data is reported to the NMVTIS database.

A free way to verify that your NMVTIS reports are being received by the national database is through www.nmvtis.gov. Click the Junk, Salvage, Recycler, and Insurer Information link on the left menu to search for junk, salvage, recycler, and insurer information by company name or NMVTIS ID. The search results will return the company’s location and recent date of reporting. The database administrators update the list periodically, so the information may be up to three weeks old, but it is an easy, free way to check and see if your reports are getting to the national database.

As Auto Data Direct’s national sales manager, I have been traveling to most of the state and industry shows for the last year and a half, and have talked with groups and associations to help explain the NMVTIS reporting requirements. I have heard all sorts of reasons for not reporting from companies, but please know that reporting to NMVTIS will help this industry in the long run, and it can be a great tool for consumers and businesses alike. NMVTIS makes it much more difficult for “questionable” car transactions to take place, which should in turn help reduce the price of the cars.

NMVTIS makes it easy to find the companies that aren’t reporting, because NMVTIS builds a “trail” linking the companies that have handled the vehicle. If you buy from the major salvage pools or sell your “hulks” to one of the bigger shredders, your business is most likely already on the “NMVTIS radar.” The salvage pools and shredders are regularly reporting to NMVTIS, and those reports include “purchased from” and “sold to” business names.

If you haven’t been reporting, it’s not too late. (ADD), Insurance Services Office (ISO) and Audatex are the approved data consolidators for NMVTIS reporting. It’s a good idea to shop around to find the data consolidator and reporting process that works best for your business. The bottom line is, enforcement is going on, and if you are not reporting, it is time to start.