How does it work now for the Lender?
- Dealer / Insurance Carrier calls.
- Lender uses the 17-digit VIN or account number to look-up the loan record.
- Lookup identifies the balance due
- If Dealer, the amount due is given to caller
- If Total Loss (TTL), Carrier offers an amount that may/may not pay-off loan, then wants to negotiate. When agreement reached, Lender produces a Guarantee Letter - transmits via fax, email, snail-mail.
- Lender receive funds, usually via check
- Lender sends title
- Produces pick slip and retrieves paper title
- Or, uses ELT system to send instructions to DMV so title will be sent to the appropriate third party
Lender Holds Lien and Title