Effective July 1, 2010, non-individual secured parties are required to electronically process straight lien adds and releases
that are not part of a title transaction (no change of ownership),
unless the transaction is exempt or the secured party added 48 or
fewer liens in the previous calendar year. The secured party is
required to pay a fee and, in some cases, an additional surcharge
for each non-exempt application it requests DMV to process.
2. What is an exempt transaction?
A transaction is classified as exempt if it involves a transfer
of ownership, if the secured party is unable to process due to
incidents associated with processing (incomplete titles, etc.), or
if technology limitations do not allow the secured party to
electronically process.
3. How will a secured party know which transactions are exempt?
The Mail to DOT form lists several common incidents or technology
limitations. This form should accompany all applications mailed to
DMV for manual processing. Vendor system help desks will have a list
of exempt transactions, and DMV will post a list on its web site.
Additionally, DMV recommends sending your customer a lien release if
the transaction is unable to be processed electronically.
4. Why do some title numbers begin with S?
As of July 1, 2010, an S title number (sample: S0182A001001-9) is
issued when a lien add transaction is completed electronically by
the secured party. Per Statute 342.245 and Trans Rule 148, the
secured party shall destroy the previous title that was provided by
the customer after sixty days. The previous title and application
will not be imaged. No lien confirmations will be generated from
electronic lien transactions that result in an S title number being
issued.
Applications and receipts for replacement title transactions,
repossessions, or title transfers must still be mailed to DMV for
imaging.
5. How can I verify my lien is on the record if no lien
confirmations will be generated on S title numbers?
You may use the Inquiry function on your electronic title
processing system (CVR, e-MV Agent, DealerTrack), or use WisDOT's
lien look-up program (requires WAMS log on ID and password)
6. How will I know if my lending institution added more than 48
liens last year?
Letters have been mailed to the address on record for agencies
that added more than 48 liens in 2009.
7. What is a secured party required to send an owner when the
lien is released electronically?
Statute 342.22(1)(b) states that the secured party shall deliver
to the owner a notice stating that the release has been provided to
the department. A letter on letterhead or a printed copy of the
system generated confirmation that the lien was removed from
Wisconsin DOT records are acceptable notices.
8. Will any secured parties be prohibited from processing
electronically?
Trans 148 allows DMV to deny a secured party the authority to
process electronically if DMV has reasonable cause to conclude that
the accuracy or timeliness of the security interest filings or
releases performed by the secured party is insufficient. The status
of these secured parties will be non-authorized. They will be
required to pay the $5.00 processing fee and the $20.00 surcharge
for each non-exempt lien add transaction completed by DMV.
9. What additional fees do secured parties pay if DMV processes
the transaction? Can the fee be passed on to the customer?
If the transaction is exempt due to holds or technology
limitations, there is no additional charge.
If a low volume secured party (48 or fewer lien adds per calendar
year) has DMV process a non-exempt transaction, there is a $5 fee in
addition to any counter fee that may apply. The $5 may be passed on
to the customer.
If a secured party with more than 48 lien adds per calendar year
has DMV process a non-exempt transaction, there is a $5 fee plus a
$20 surcharge due, in addition to any counter fee that may apply.
The $20 surcharge may not be passed on to the customer. The $5 or
$25 is not a substitute for counter service fees due.
10. How will the additional processing fee and surcharge fees be
disclosed on the MV1 application?
Section D of the MV1 application will be revised to include a
line titled "Processing Fee." Instructions on the MV1 will
explain when the $5, or $5 plus $20, processing fee is due. Secured
parties can exhaust their supply of old MV1 forms before using the
revised form.
11. What is the difference between the $5 or $25 processing fee
and the $19.50 APPS (Automated Processing Partnership System) fee
that appears on the MV1?
The $5 or $25 is the fee due to DMV for manual processing of the
transaction. The $19.50 APPS service fee is a fee that the customer
pays to a secured party that completes their transaction via a
private vendor processing system (CVR or DealerTrack). There is no
service fee charged to the customer when an application is processed
through e-MV Agent.
12. What if a secured party makes an error when processing a
transaction?
If the error is discovered the same day, the secured party may
reset the transaction until 8:00 pm. If the error is discovered
after the day it was processed, the secured party should contact the
Agent Partnership Unit (608) 266-3566.
13. Where can my agency get information and contact information
regarding the electronic processing options available?
Information on the processing options and contacts information
for each option available to you can be found on our
web
site.
