Illinois worked to reform auto-title lending due to a changing industry and regulatory landscape.
Common abuses found in auto-title lending can be found in excessive fees, which are not always authorized, repossessions that are conducted without proper disclosure and transparency, and loan balances, which can quickly exceed the vehicle value. These abuses can quickly lead to a consumer losing their vehicle, while still having unpaid loan balances. The Illinois statute not only reforms and makes transparent the fees, the real-time database ensures 100% compliance in the market.
After winning a competitive bid process, Veritec worked hand in hand with the Illinois Department of Professional Regulation (IDFPR) to implement the first of its kind auto-title lending database. Starting with detailed business rules, which accommodated the Illinois rule making process, Veritec worked to implement a seamless solution for the IDPFR and the industry.