The South Carolina Electronic Lien Title Program is a paperless method that allows liens to be perfected electronically most often through a service provider allowing the South Carolina Department of Motor Vehicles and financial institutions to exchange electronic lien title data.  This CPM project was to determine and recommend changes to improve the electronic lien title process with a goal of increasing the efficiency and effectiveness of the manual process

Tucker, Ida G.

South Carolina State Documents Depository

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Ida G. Tucl<er 
Cetified Public Manager's Project Report 
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Introduction 
To Increase Efficiency of the South Carolina 
Electronic Lien Title Process 
What is an SC Electronic Lien Title? The South Carolina Electronic Lien Title Program is a 
paperless method that allows liens to be perfected electronically most often through a service 
provider allowing the South Carolina Department of Motor Vehicles and financial institutions to 
exchange electronic lien title data. The electronic lien title process allows banks, credit unions, and 
title loan companies in the Program to receive an electronic message from the South Carolina 
Department of Motor Vehicles as a perfected lien notification instead of the normal paper title 
certificate. The lien remains secured electronically until the lien has been satisfied or the lienholder 
requests a paper title certificate. 
The electronic lien process was implemented to reduce the cost associated with printing, storage, 
and fraudulent activities involving paper title certificates. In 2008 the South Carolina . Legislature 
amended Section §56-19-265 of the South Carolina Code of Laws to allow the South Carolina 
Department of Motor Vehicles to provide and accept electronic lien titles to lienholders 
participating in the SC Electronic Lien Title Program through a network of approved service 
providers. 
The lienholders participating in the Program enjoys the benefits knowing they do not have to: 
• Retrieve a title from a conventional file when the lien is satisfied . 
• Physically satisfy (sign off) a lien on a title. 
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• Mail a title to a customer. 
• Apply for a duplicate title to replace a lost title. 
The Electronic Lien Title Program is beneficial to the South Carolina Department of Motor 
Vehicles and the lienholders because the program: 
• Reduces title fraud. 
• Reduction of title paper usage. 
• Faster notification oflien satisfactions. 
• Access to expedited title printing. 
• Reduction in storage of title documents. 
• Consolidated monthly billing for title services . 
• Better customer service. 
• Overall reduces costs. 
To ensure the South Carolina Electronic Lien Title process provides excellent quality to customers 
and stakeholders alike our goal is to increase the efficiency of the Program by promoting and 
creating a user friendly titling system through upgrades while improving and expanding training on 
data recognition and verification of the electronic lienholder information . 
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• Problem Statement 
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The process is characterized by vast systematic and users (CSRs) errors. These errors are 
compounded with numerous inaccuracies in the titling database where customer numbers 
(lienholder identifiers) can be selected without alerting the users (CSRs) to a non-electronic 
lienholder customer number. 
Electronic lienholders are assigned a customer number to be identified in perfecting their liens 
electronically. The assigned customer number is to be provided on the South Carolina Title 
Application (Form 400) for the lien to be transmitted electronicaJJy when submitted to SCDMV. 
If the users (CSRs) search by name of the lienholder instead of using the electronic lien title 
customer number information provided on the title application; the CSRs risk selecting a customer 
number without the ELT status for the same lienholder. Why? The system design of the current 
Phoenix program will allow a lien to be perfected as long as a lienholder customer number is 
selected in Phoenix. When this happens, the lienholder receives a paper title instead of the 
electronic notification. 
These types of errors require re-work for the SCDMV compliance users (CSRs). Erroneous paper 
titles are then converted manually re-entering the correct electronic lienholder customer number that 
cause delays in other scheduled tasks. 
Project Overview 
To determine and recommend changes to improve the electronic lien title process with a goal of 
increasing the efficiency and effectiveness of the manual process, data were collected in an effort to 
outline the recommended system restructuring and to improve document training to the users 
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• (CSRs). The review was based on the number of electronic lien titles produced from August 2012 
through December 2012 by the South Carolina Department of Motor Vehicles. 
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The training would define terms of the electronic lien title process in the agency's Procedures and 
Business Processes online material and provide a guide to document verification process in order to 
implement a change in the titling process where the correct lienholders are being added to the title 
certificate or perfected as an electronic lien title. 
Data Collection 
The total amount of electronic lien titles produced by the South Carolina Department of Motor 
Vehicles are based on the number of corrected EL T title applications with the electronic lienholder 
customer number and the selection process by the users(CSRs). 
The South Carolina Department of Motor Vehicles issues approximately 1 million titles a year and 
less than one percent of those titles are electronic lien titles. The Department expects the e-lien 
system growth to continue and to create a public and private technological partnership with other 
entities interested in the electronic title process, lower costs for both public and private sectors, 
enhanced customer service, and reduced numbers of duplicate titles. 
Percentage of errors equals less than one percent of the total electronic lien titles processed in first 
half of the fiscal year 2012. The total electronic lien titles processed in August was 16,000, 
September 24,000, October 19,000, November 23,000, and December 17,100, respectively. (See 
Figure 1) 
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• Figure 1. 
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December 
November 
October 
September 
August 
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Electronic Lien Titles Processed 
5 10 15 20 25 
111 Errors 11111 E-Lien Titles 
Source Data: DMV Phoenix Reports (Number of Electronic Liens in the Thousands) 
Additionally, four interviews were conducted with stakeholders and employees, ideas provided 
were positive and there was optimism about the future expectations for the South Carolina 
Electronic Lien Title Program. 
The determining factors were establishing a defined electronic processing system and added steps 
toward a more efficient and productive network environment among the users and third party 
partners. 
1. Another way to reduce the error ratio will be for the State to become 100% 
electronic in the next two years. All lenders will be required to establish an ELT 
code and it must be written on the title application. This will minimize the 
processing time as CSRs won't have to scroll through a list of lienholder customer 
numbers. (SCDMV HQ, employee) 
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2. One idea that would require programming but that I think would be beneficial in 
reducing the number of ELT errors are ... . on the ADD LIENHOLDER screen in 
Phoenix, the ELT indicator should show when searching for the lienholder 
customer number. Also, if an EL T lender is selected, a confirmation message 
should display informing the CSR that they have selected to add an EL T lender. 
In my opinion, the CSR would be made aware if they have or have not added a 
lienholder to the vehicle record. (SCDMV HQ, employee) 
3. As a stakeholder I would like to see, 1) release errors to require title numbers on 
the release messages to eliminate duplicate Vehicle Identification Numbers errors, 
2) suspense items monitored so suspense items can be reset without the customer 
(lienholder) having to request their liens to be perfected, and 3) provide an 
automated way to convert paper titles to electronic lien titles when an error has 
taken place by the SCDMV to help resolve matters quickly. (Service Provider) 
4. I believe if the State can provide funding for a more user friendly network where 
banks, credit unions, and mortgage companies can go online and update the 
agency's title and registration system from their place of business, the Department 
of Motor Vehicles could incur a gain in efficiency. (SCDMV HQ, Supervisor) 
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Current Process 
The CSR uses the following process to perfect electronic liens on titles. 
• Procedure TI-006 "Title and Registration Issuance" outlines regulations the 
Department must follow in order to issue a title. 
• Business Process "Title Issuance" outlines a step by step process for 
processing a title in the Phoenix system. 
• South Carolina Title Application (Form 400) 
• Electronic lienholder assigned customer number listed on the title application 
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Figure 2. South Carolina Title Application (Form 400) 
South Carolina Department ofM.otor Vehicles 
Application for Certificate of Title and Registration for Motor Vehicle or 
Manufactured Home/Mobile Home 
SSCTION A c) 0 EXPEDITE {additional S:/.0.00 fee) Check her& to expedite U1is title. 
Form 400 
(Rev 4/10) 
, c-neCK lne oox next tot .e .type o tr;'lnsactoon you ne.,p. ease enc ose lr1e reqUireo oocument!> ana ees wtth your co~"led and s1gned application. 
For expedited satvlces {within 3 business days) inclvde an additional $20.00 fee. Make checks payable to: S C OMV. DO NOT SEND CASH. 
SECTION B • VEHICLE.INFORMA "I'IONJ Pre••• print or typ<> lr> bl<><;k Ink only. 
MAl(£ t SOOYSTYLE ., Mooct JE""'''YWEIG><T lovw 
SECTION 0 · ODOMETER MILEAGE J (Mile• not t<Jlometo~ 
FED£RALANO STATE LAW REQUIRES THAT YOU STATE THE. MILEAGE IN CONNf!CTIOtof V'JITH THE TRANSFER CY OWNERSHIP, FAILURE TO COMPLE.TE OR PROVIDING A FALG-E: S TATEMENT MAY RESUlT 
IN FiNE$ANOIOR tMPRIS~ME.NT. 
I STATE THAT nm; QOOMETER NOW AEAOS ,~......,--· ·· -.............. , •• ~~- ---..---........ {NO TCNTHS)A~D TO 'TltE. BEST OF MY l<NO\J'IJLEDGE TH·~T IT RC:FUZCTS TMG ACTUAL .,_ll..EAGE ()iF Tt II! 
VE:HlC\.~ DESCRiBED A90VE UNLESS ONE OF 'THE f'Oll.O\IVING STATEMENTS IS C HECKED: 
DO NOT CHECK ONE CiF THE FOLLOwt,.,.C UNLE.S$ IT APPLIES. 
0 EXEMPT 
0 l CERT1"FY THA.'T TO THE. SEST OF MY K.NOVA.Eb.· G E THE ODOMETER ttEADING FtE.H.EeTS. TH. E AMOUNT OF Mll..EAGE IN EXCE.$S OF 'ITS MECfi,AN!(',AL UMffS 
D 'CEfO;IFY THAT THJ; OOOMfZTri1R READING IS ~T"t"l1E;A.CTUAL MJtEAG~, WARNING OOOM,ETI'!R D4SCREPANCV. 
SE.C'TiON 0 :.;. OWNE"R "tNFORMATlO:P!J Your eomptete legal n•me. must be used on •II tltJa and regl-.tnJ.I'J'on docum4tnts. 
Nt:wt,RIMARY twiNeR COMPLE"l'l!: LEGAL NAME {LASl'; FtR.ST, MI.Qt:)U:) 1 sc cuSTOMER No., ORNER uceNSE' NO" sex: sec .• OR rEIN 
l 
bATE OF BIRTH 1 sHAAe.o o~eRSHIP l sc CUS'TOMEA NO. t)"A;fVER uceNsE NO,, soc. sec., oR FEIN 
~~~~-------~~----~~--------~~-------~~--=CJ~~N~D~[]~~OR~--~~r~~------~--~~r-~----~~--~~----·p~RY OWNER'S REStoeNC·E. STRe:ET ~DRESS '"M NO IF APPLICABLE) ) Ci1'"Y S'TA'rE ZIP 60oe ..... ~ ~---
! 
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"'UAIUNGAODRESS (IF OIFFE.RF..NT F"ROMA.sQve.=;.,,---------~·---,---------~~ c=ITV,-.-----·--f-c::S':'TA':':T:::E:--·-
.J\'OQA:(£"$8"'\NHffi"iS:·ve·H··c·~E""~S"':Hf.:)tffl."e:D ' ('iF"'t)if=~el"E;:«'f;'R_QM'"A~') ............. ~ .............. ,., ...... .................... ~ ..... , .. ,....... . ........ .... ,: ... 1; ... c:~.,::I:Y.:; ........ , ................. : ............ -...... , •. , 1·-;:r;re ... .. 
l sc 
ZIPCOOE C.OV'NTV I TEMPORARY ADoRES:~ \IF~iF..Aace)---~ .. ~-·-·""""'"'"""''--~-,_... ·~ ... ~-€XP.IAAT'iON"6FTF..M"POAARY ADoReS$'"" ~---
SECTIQN £;;·,• LEASING l!\IFORMATJ~Nj Compl""' onty for a le.,s<>d vOhlclo. 
LEASING COMPANY NAME 
JCl.E) DRIVER UCENSE NO ., soc. SE.C. NO., 0~ FEJN I OATIS OF t!IRTH 
• tOITV 
SEC rtON F. lEN INF<;(tMATlON} If you""' a l'-nholdor, aN> you 11 SC ELT participant? C YE'S CNO 
C.. CUSTOMER NO" OR FEIN~ IENHOCDER NAME (FIRST liEN """" ' l'<>f .. ' ll v.,.,l. I• .. ld '" h"'-
MA.J ... INO A.DORE:S$ 
CUSTOMER ;f!tiQ , OR FEIN .l 
MAlL.ING At>Of.(ESS·--·-"4f---.._, ___ _ 
B-4HOlOER NAME. (SECOND t .. J ~N) l CONTACT P!CI'SON I 
I"" 
Section F-Lien inforrhation: In this sec on the lienholder information consist of the EL T customer number and the lienholder's 
name and mailing address. To perfect an electronic lien title, the CSR must enter the listed customer number on the title 
application into Phoenix. If no customer number is listed, the CSR searches by name of the lienholder in Phoenix and selects the 
appropriate customer number for the lienholder listed . 
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• Data Analysis 
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The initial step I took was to determine what factors are leading or contributing to these errors and 
it was determined that when a user (CSR) enters the lienholder information from the South 
Carolina title application (Form 400) into Phoenix then selects "search", possible lienholder(s) are 
returned without the ELT lienholder' s indicator listed first. However, if the user (CSR) enters the 
lienholder' s partial name, the system returns a list of likely lienholders with various customer 
numbers increasing the level of errors in selecting a non-electronic lien customer number. 
Other factors included the CSRs are not paying attention to the lienholder information on the 
South Carolina title application (Form 400) and carelessly entering variations of the lienholder' s 
name or entering a completely different lienholder than what is listed on the title application. (See 
Figure 2,· Section F) 
Proposed Process 
To eliminate or reduce the errors that are occurring with the ELT process, improvements in the 
Phoenix query process is necessary. I propose the following changes: 
• To implement a change to accommodate the search criteria for electronic lien customer 
numbers, a message would be issued as follows: the program would need to identify 
whether it is an EL T or not using a <Yes> or <No> designation. 
• If the user (CSR) selects <Yes>, the system will search lienholders designated 
as ELT Lienholders and return ELT customer' s numbers that match the 
information the user entered. The user (CSR) may then select from the new 
list as before and the lienholder is added to the selection process. 
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• If no lienholders are found from the original search, a message will be 
displayed: Customer not found on database 
• The user (CSR) can then enter the lienholder information to create a new 
lienholder customer number and add it to the database. 
• Documentation training identifying EL T lienholders pnor to the entry to 
Phoenix. 
Implementation 
Implementation of the proposed changes will require a change in the Department's current Phoenix 
operation system. The changes would include an extended search routine, server changes, same 
name and address searches, customer maintenance program, and client changes . 
The upgrade to the Phoenix operation system will take several months of testing m a test 
environment before the recommended changes can be move into production for use. During the 
testing period, I propose daily monitoring of all title transactions at all levels that include an audit of 
the lienholder information listed on the South Carolina title application (Form 400) to the internal 
check list of lienholders available to CSRs via the Department's intranet, DMV branch offices and 
Headquarters' managers would prepared a check list of commonly use lienholders by lenders and 
dealers who drop off title applications for processing, and to extend the Wednesday morning 
training sessions to include fact gathering data on daily transactions discrepancies. 
The opinions and data gathered from the branch offices including Headquarters' titling units would 
be provided to the programmers to assist with the impending implementation . 
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• The user would select to the current EL T customer number selecting "yes" to 
update the title record with the electronic lienholder customer number or "no" 
and proceed with a different search. 
The timeline and cost varies due to deadlines for current projects and the level of effort to succeed 
in expanding the capabilities to make high-level changes would be best estimated to be six weeks. 
Evaluation 
In reviewing the Electronic Lien and Title process, there are several improvements relevant to 
reducing errors. The overall process related to Phoenix is the errors are due in part because Phoenix 
does not have built-in functions to identify user (CSR) errors when entering specific lienholder 
information. If Phoenix could cross reference or flag information that is incompatible the user 
(CSR) would be alerted to errors being make before the transaction is completed. 
I would propose a built-in reporting system that would further decrease the overflow of unnecessary 
lien errors. The Phoenix report would identify various transactions with compatible lienholder 
names, addresses, and customer numbers to a unique identifier that is actually an EL T lienholder 
customer number. The report would indicate the correct lienholder customer number that should 
have been used, as well as, the customer number that was selected. 
I would use the report to provide internal CSR training on selecting and identifying EL T lienholders 
and to develop other auditing programs to improve other elements in the South Carolina Electronic 
Lien Title Program . 
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• I would propose a built-in reporting system that would further decrease the overflow of unnecessary 
lien errors .The Phoenix report would identify various transactions with compatible lienholder 
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names, addresses, and customer numbers to a unique identifier that is actual an EL T lienholder 
customer number. The report would indicate the correct lienholder customer number that should 
needed to be used, as well as, the customer number that was selected. 
I would use the report to provide internal CSR training on selecting and identifying EL T lienholders 
and to develop other auditing programs to improve other elements in the South Carolina Electronic 
Lien Title Program . 
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References 
1. (2007). Electronic Lien Titles, Retrieved December 2012 from <http: //www.etitlelien.com> 
2. (2013). SC Codes of Laws, Retrieved December 2012 from 
<http://www. scstatehouse. gov I code/ statmast. php> 
3. (SCDMV, Information Technology. personal communication, January 23, 2013) 
4. (SCDMV, employee, personal communication, January 28, 2013) 
5. (Service Provider, stakeholder, personal communication, January 28, 2013) 
6. (SCDMV, supervisor, personal communication, January 29, 2013) 
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To increase efficiency of the South Carolina electronic lien title process

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To increase efficiency of the South Carolina electronic lien title process

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