Acquiring a car loan in Illinois will soon become easier due to a new program established by Illinois Secretary of State Alexi Giannoulias.
The Secretary of State has launched an Electronic Lien and Titling program, which allows vehicle titles to be processed, stored and released digitally. The process eliminates the need "for arduous paperwork, physical document mailing or in-person visits to a DMV facility," according to Giannoulias' office.
A person purchasing a vehicle at a dealership will be asked to complete an online title application that determines whether the lender has opted in for the program. If they have agreed to participate, an electronic copy of the paperwork will be sent to the Secretary of State for review.
A third-party vendor will store the electronic record until it is time to release the title, according to the Secretary of State's office. Lienholders will no longer have to search through physical records -- and will be able to mark the title as paid instead.
The owner will then receive the released title from the Secretary of State. While the office itself doesn't charge for the service, some service providers may charge fees to participating lienholders.
The ELT program will also aim to reduce "title-washing" and fraudulent lien releases, which can prove devastating to both customers and lienholders, according to officials.
Illinois joins 25 other states that have such programs. While the ELT program was first approved by the Illinois General Assembly in 2000, the Secretary of State's Office said "outdated technology delayed full implementation."
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