LANSING, Mich. (10/6/14)--A set of electronic lien titling bills backed by the Michigan Credit Union League (MCUL) was signed into law by Gov. Rick Snyder last week.
"Our government affairs staff has worked with Secretary of State Ruth Johnson, the state Legislature and Gov. Rick Snyder to craft this law to move Michigan from a paper-based title system to one where titles are held electronically by the state," said MCUL CEO David Adams (Monitor Oct. 1). "While this new law will require training by credit union personnel, it will also help reduce title fraud."
Earlier this year, the league and four credit unions testified in support of Senate bills 915-918 (News Now June 17).
The new law requires that vehicle titles with liens be held electronically, and that transactions related to lien placement and release be conducted electronically. The system must be operational by July 1, 2016.
Currently, vehicle titles in Michigan are in paper form and held by the borrower. The paper-based title-holding system can enable "title washing," a type of fraud that hides the history of a vehicle, including whether it was salvaged or written off as a loss.