The shift from traditional paper titles to electronic titles (e-titles) aims to reduce forgery and title tampering. However, gaps remain—especially in private party sales—resulting in credit union losses.

Typically, dealers handle lien perfection until the loan is paid, then the credit union releases the lien. This process involves mailing documents, waiting for state processing, and often includes errors, delays, and added costs.

E-titles simplify this by allowing the state to issue and release titles electronically—no mail delays, no collateral hassles.

Still, e-titles can be inconvenient in private sales. Many states revert to paper titles for ownership transfers, making the process slower, costlier, and more vulnerable to fraud.

Credit unions must stay vigilant to detect and prevent title fraud.

For more information and risk mitigation tips, read the full alert at: Trustage.com (Password and log-in required).