Georgia and Florida recently passed legislation that requires most auto lenders to participate in an electronic lien and title program.

Florida HB 1223 requires most, if not all lien holders to participate in the ELT program by Jan. 1, 2013.

Georgia HB 865 authorizes the Georgia Department of Revenue to phase in a mandatory ELT program and the final rules outlining participation in that program will be published before Jan. 1, 2013.

VINTek, a Philadelphia-based provider of automotive collateral management and ELT services, said it will assist auto lender, including credit unions, in those states to prepare for the implementation of ELT programs.

In Georgia and Florida, more than 800 lienholders have already implemented ELT programs, according to VINTek.

The company says it acts as an intermediary on behalf of a lien holder. VINtek said ELT programs help to eliminate exposure to a growing area of fraud that involves falsified lien release letters. Currently, perpetrators can create fictitious lien release documents and receive clear titles from the DMV, VINtek said. In an ELT program only the lienholder of record can electronically release its lien.

According to Larry Highbloom, president of VINtek, a growing number of states are adopting ELT programs.