Car Title Fraud – Do’s & Don’ts For Getting A Title

The Dangers of Title Fraud and Why You Should Be Cautious

• An Illegal Title Scheme Unveiled
  A towing company engaged in a title fraud scheme that spanned from 2020 to 2023, involving false affidavits for abandoned vehicles or mechanics’ liens. The perpetrators filed these fake documents to bypass legal processes like bonded titles or court-ordered titles, thinking it was an easier route.
• The Modus Operandi
  The scheme involved the towing company forging documents and providing them to a third party, allowing the sale of vehicles with fraudulent titles. This often masquerades as a service where individuals are persuaded to sign their vehicle over to the company. The fake mechanics’ liens or abandoned vehicle claims are then filed to obtain the title, only to be transferred back to the original owner.
• The Risk and Consequences
  The fraudulent bill of sale falsely claimed the vehicles were in the possession of the towing company, leading to two individuals being arrested. Not only did this put the perpetrators in jail, but it also posed risks for those unknowingly involved. Titles obtained through such illegal means may later be revoked, leaving the unsuspecting individuals in legal trouble.
• The Common Pitfalls
  Many fall prey to these schemes, thinking it’s an easier way to obtain a title without navigating the legal procedures. However, signing a vehicle over to a third party can have severe consequences. If the intermediary gets involved in any fraudulent activity, the vehicle could be implicated, jeopardizing the owner’s possession.

DIY Legal Methods vs. Illicit Services
Legal methods for obtaining a title exist, and individuals can often handle the process themselves without paying anyone. While services are available to assist, blindly entrusting someone to handle the title acquisition can lead to unforeseen consequences. Understanding the process and ensuring it aligns with legal standards is crucial.

Historical Precedents and Ongoing Risks
Title fraud is not a new phenomenon, and similar schemes have been uncovered over the decades. Companies in various states have faced legal consequences for engaging in illegal title practices. Staying informed about historical cases serves as a warning to individuals seeking title services.

Seeking Legitimate Solutions
If faced with title problems, it is essential to ensure that the chosen method is legitimate and complies with legal requirements. Reaching out to reputable services or agencies that specialize in titles can provide guidance and help avoid falling into sketchy or gray areas.

A Call for Caution and Vigilance
In conclusion, the recent towing company scheme is a reminder of the risks associated with title fraud. Vehicle owners must exercise caution, understand the methods used to obtain their titles, and avoid shortcuts that may lead to legal troubles. Being vigilant in the title acquisition process can prevent potential complications in the future.

Consultation and Assistance
For those with questions or concerns about their vehicle titles, seeking professional consultation is advisable. Services like cartitles.com offer assistance, ensuring individuals navigate the title acquisition process legally and securely.

Watch our YouTube video: https://youtu.be/tmCnz2gVSQQ?si=1fRipjwSLYUBusos

Many Cars Have Fake Mileage On The Odometer

The Pervasiveness of Odometer Tampering

• Odometer Tampering: A Deceptive Practice
  According to a researcher from Carfax, the issue of odometer tampering is more prevalent than one might imagine. In Wisconsin alone, a staggering 28,000 vehicles have been identified with tampered odometers. This deceptive practice involves altering the mileage of a vehicle, creating a misleading impression of its condition and value.
• The Art of Odometer Rollback
  In the past, tampering with odometers was a relatively straightforward task. In the 1970s and ’80s, a simple manual adjustment using tools like a dental pick could easily roll back the mileage on analog dashboards. The advent of digital odometers initially posed a challenge, but as technology advanced, a concerning ease of tampering resurfaced. Now, one can easily purchase a device online, plug it into the car, and roll back the odometer, perpetuating the deception.
• Modern Challenges and Red Flags
  While tampering may be simpler, its consequences have become more complex. Every instance of car servicing, sale, or emissions testing creates a record of the vehicle’s mileage. This meticulous documentation, however, becomes a double-edged sword for those attempting odometer fraud. Any alteration in mileage creates inconsistencies with previous records, instantly raising a red flag during transactions or transfers.

Protecting Yourself as a Buyer

• The Flipping Phenomenon
  Many individuals engage in the unethical practice of flipping cars and manipulating odometers to sell vehicles at higher prices. To protect yourself as a buyer, it is crucial to scrutinize the mileage history of any potential purchase. The temptation to acquire a seemingly low-mileage vehicle may lead to costly repercussions down the road.
• Trusted sources and verification
  While Carfax provides valuable information, relying solely on it may not be sufficient. The National Motor Vehicle Title Information System (NMVTIS) is considered the authoritative source for all records related to mileage. By cross-referencing the vehicle’s history with NMVTIS, buyers can ensure that the displayed mileage aligns with the documented records, offering a more comprehensive and accurate assessment.

In conclusion, as the practice of odometer tampering persists, buyers must exercise caution and due diligence. Verifying mileage through reputable sources like NMVTIS is crucial to avoiding falling victim to deceptive practices and ensuring a fair and transparent transaction.

All Salvage Titles Will Be Junk Parts Only Vehicles

Understanding Salvage Titles
Have you been purchasing vehicles with salvage titles at Copart or IAA, or perhaps through a broker like Bidmas Auto Bid Buy? Salvage titles signify that an insurance company has paid a total loss claim on a vehicle, usually due to theft, collision, or flooding. Unlike typical insurance claims for repairs, salvage titles indicate that the insurance company now owns the vehicle.

Auctioning salvage vehicles
Insurance companies, reluctant to keep these salvaged vehicles, sell them through auctions such as Copart or IAA. While many of these vehicles can be repaired and put back on the road, insurance companies are increasingly turning away from salvage titles to avoid potential liabilities associated with accidents involving previously salvaged vehicles.

Rise of Junk Titles
Rather than issuing salvage titles, insurance companies are now opting for “junk titles” or “Partson titles.” These designations, varying by state, make the vehicle ineligible for future titling. The VIN number is entered into the national motor vehicle title information system, creating a permanent ban on titling or registering the vehicle anywhere in the country.

Liability Concerns for Insurance Companies
Insurance companies fear the potential liability associated with bringing salvaged vehicles back on the road. If a previously salvaged car is involved in an accident, legal repercussions may follow, leading to lawsuits against the insurance company that originally owned the vehicle. To mitigate this risk, insurers are increasingly opting for junk titles to permanently bar these vehicles from returning to the road.

Market Implications
This shift in insurance company practices is influencing the market for salvage vehicles. Despite receiving similar amounts at auctions for both salvage and junk titles, insurers are increasingly labeling vehicles as “Parts Only.” It’s anticipated that within a year or two, all vehicles sold at these auctions will bear a Parts Only designation, completely eliminating salvage titles.

Stricter DMV Inspection Policies
In response to this trend, some state DMV inspection policies are already rejecting salvage title inspections. Even if a salvaged vehicle is fully repaired and meets all requirements, states are becoming reluctant to allow these vehicles back on the road, further complicating the process of obtaining a salvage title.

Unseen Damage to Recovered Theft Vehicles
Recovered theft vehicles, initially labeled salvage or junk, often appear to have minimal damage. However, insurance companies refrain from selling them as clean titles due to uncertainty about potential hidden damages. This caution stems from unknown factors, such as stolen airbags or structural damage, leading insurers to opt for Parts Only designations.

Flooded Cars and Parts Only Designation
Even flood-damaged cars with no apparent physical damage may receive a parts-only designation. Smells of mustiness or surface rust on brake rotors may be present, but as long as there’s no visible physical damage, insurance companies categorize these vehicles as parts only.

Caution for Buyers
Buyers considering vehicles at Copart or IAA in the coming years should be aware of the evolving landscape. The prevalence of salvage titles is diminishing, making way for parts-only designations. It’s crucial for buyers to exercise caution, avoiding purchases unless a clear salvage title is present. Failure to do so may result in being unable to obtain a title for the purchased vehicle, causing financial loss and legal complications.

Watch our YouTube video: https://youtu.be/MG7KKL65ixg?si=PtQGnEG_d_-IobH_

Can You Get a New Jersey Bonded Title? Improper Evidence of Ownership Procedure

The state of New Jersey poses a unique approach to bonded titles, creating some confusion among vehicle owners. Unlike most states, New Jersey’s process, termed the “improper evidence of ownership procedure,” does not mandate the purchase of a bond. In this article, we delve into the intricacies of the New Jersey bonded title process, shedding light on the steps involved and the alternatives, such as the court-ordered title.

Understanding the New Jersey Process
When obtaining a title in New Jersey without proper evidence of ownership, the state requires adherence to a specific procedure. It’s essential to note that New Jersey stands apart from other states where a bonded title process involves acquiring a bond certificate from a bonding agent, often at a significant cost. In New Jersey, it is referred to as the improper evidence of ownership procedure, which, although distinct, involves additional steps.

The 12-Step Procedure
To initiate the New Jersey bonded title process, a comprehensive 12-step procedure must be followed. The procedure, outlined by the Motor Vehicle Commission (MVC), begins with a proof of ownership lean search application. This involves submitting $15 to the DMV for a printout detailing any lean, stolen status, or salvage information. Importantly, this step must be completed before proceeding further.

Completing the necessary forms
Once the title search information is received, the process continues with the completion of the essential forms. The emergency application for a vehicle title (form SS150) is to be fully completed and notarized. Simultaneously, an advertisement must be placed in a local newspaper, signaling an intent to obtain a title for the vehicle. This step is accompanied by reaching out to the local police department to ensure there are no issues with the vehicle’s status.

Communication and documentation
Further steps involve filing an SS45, a notice of intent to obtain a title, to be sent to the last owner and lean holder. Additionally, a bill of sale, photographs of the VIN and the vehicle, and three letters from individuals affirming the vehicle’s possession are required. These meticulous steps are essential for proving ownership.

Title Application and Finalization
The final steps include completing a regular title application (SS7), submitting a $60 check for the title fee, and paying 7% sales tax. A signed SS94, affirming personal use only and not for resale, is also mandatory. With these components in place, the New Jersey bonded title process is on its way to completion.

Forms and documentation details
A crucial aspect of the process involves understanding and correctly filling out various forms. From the title search lean request to the buyer’s declaration emergency application, notice of intent to obtain title, and the regular title application, each form plays a role in establishing ownership.

While the New Jersey bonded title process may seem intricate, understanding the steps involved empowers vehicle owners to make informed decisions. Whether navigating the process independently or utilizing a title service, individuals should also consider the court-order title process, which offers a simpler alternative with fewer steps. Ultimately, for New Jersey residents facing title challenges, this guide provides a comprehensive overview of the bonded title process and available options.

Watch our YouTube video: https://youtu.be/HJIF8o2I5tQ?si=bXj20HiCBeHyT8gQ

What Is Going On With Vermont Titles?

New Laws and the End of the Vermont Title Loophole
In 2024, Vermont will witness significant changes in its titling and registration laws. A wave of new regulations has swept in, impacting residents and stirring potential controversies. The year started with the discontinuation of the infamous Vermont title loophole, which allowed out-of-state registrations. This change, implemented in June 2023, only permits the loophole for Vermont residents or those with explicit permission from their home state.

Stricter Regulations for Older Vehicles
The latest blow comes in 2024, as Vermont no longer issues registrations for vehicles older than 15 years. Even Vermont residents must now navigate the titling process for vehicles of any age, adding an extra layer of complexity. This poses a challenge for current registration holders, including those who were accustomed to obtaining registrations for older vehicles without the need for a title. The impact is demonstrated through the experience of the Maxwells attempting to register their 2005 Jeep.

Challenges for Current Registration Holders
The Maxwells, attempting to register their 2005 Jeep, face an unexpected hurdle. Previously, due to the age of the vehicle, they could secure a registration without a title. However, the recent changes necessitate a title for all vehicles, regardless of age. This raises concerns for individuals who never acquired a title for their vehicles, potentially leading to complications for existing Vermont registration holders.

Voided Out-of-State Vermont Registrations
Moreover, individuals who possess out-of-state Vermont registrations are facing a dilemma. The recent changes will void these registrations, creating an additional challenge for those who have already registered their vehicles. The process to resolve this involves utilizing the VIN number and an affidavit, but the inconvenience for affected individuals is undeniable.

Rising Fees and Administrative Changes
Adding to the mix, the Vermont Department of Motor Vehicles is increasing its fees, further impacting residents. The heightened fees add financial strain, making the registration and titling process more burdensome than before. These changes signal a significant shift in the landscape of vehicle registrations in the state.

The Enforcement Director was placed on administrative leave.
Beyond the legislative changes, the Vermont DMV is facing internal challenges. The Director of Enforcement, who assumed the role just a few months ago, has been placed on administrative leave. Formerly a police chief and detective, this individual is now under FBI investigation. The nature of the investigation remains unclear, leaving room for speculation about potential wrongdoings or issues within the enforcement division.

Speculations Surrounding the FBI Investigation
The FBI’s involvement in the investigation adds an extra layer of intrigue. While details remain scarce, the situation raises questions about the enforcement director’s actions or potential internal problems within the DMV’s enforcement division. As the investigation unfolds, the impact on the Vermont DMV and its overall operations remains uncertain.

Conclusion and Call for Vigilance
The unfolding developments at the Vermont Department of Motor Vehicles paint a picture of uncertainty and change. With legislative reforms, administrative shifts, and an ongoing FBI investigation, the future remains unclear. As the situation evolves, residents and stakeholders must stay vigilant to understand the full extent of these changes and their implications for Vermont’s motor vehicle processes. Stay tuned for further updates on this evolving situation.

Watch our YouTube video: https://youtu.be/_btvKu27pKU?si=RBncHxjHg7CU5N3s