The National Motor Vehicle Title Information System (NMVTIS) took effect Jan. 1 – 17 years after the law calling for it was enacted – but not all states are sharing information with the database, the Baltimore Sun reports.
Four states – Illinois, Kansas, Mississippi and Oregon – and the District of Columbia aren’t participating in the new system, which is designed to track vehicles that were stolen or totaled to prevent them from being fraudulently resold, the Sun says. In 2001, 1.5 million totaled vehicles were fixed and resold, according to the Department of Justice, and the NMVTIS could prevent between $4.3 billion and $11.3 billion in losses related to such fraud.
Under the rules for the system, VINs, the date vehicles are marked for salvage yards, the name of the insured from whom the vehicle was obtained and the name of the owner at the time of the filing must be provided. The system is meant to link total loss information collected by state motor vehicle departments to reduce fraud.
Illinois officials told the Sun that they don’t believe the NMVTIS is necessary because similar information is available from Carfax and Experian. However, consumer advocates say that because the system requires information from all insurance companies, states and junk yards, it can provide more information than the commercial information providers, which glean facts mostly from state agencies and police reports.
The 1992 law calling for the NMVTIS was enacted in 2008 after several consumer groups sued the federal government.
More information:
• Read the full story from the Baltimore Sun
• Access the National Motor Vehicle Title Information System
• Two Federal Bills Seek to Strengthen Total Loss Reporting Rules Effective April 1
• Consumer Advocates, Auto Coalition Fight to Keep ‘Rebuilt Wrecks’ Off Nation’s Roadways
