NWCUA, Oregon DMV Release Clarified Process for Private Vehicle Sales

Two processes related to vehicle sales in Oregon were recently approved, thanks to direct advocacy engagement from Your Association, and our member advocates.

“Credit unions let us know what the pain points were, and that led to a tangible, actionable change that will allow them to serve their members more efficiently,” said John Trull, NWCUA AVP of Regulatory Advocacy.

Two specific processes were clarified:

Member (Borrower) is Purchaser; Seller Discloses Odometer Reading on Title Certificate

In this scenario, the credit union has made a loan to the member (buyer) and issued a check or otherwise transmitted loan proceeds to the seller. The buyer has taken possession of the vehicle and the seller sends the original title certificate to the credit union. The credit union will assemble the documents for transmission to the DMV.

Below are the steps the buyer/borrower and the credit union should follow in connection with application for a new title in this scenario:

  • Borrower/buyer electronically authenticates and sends to Credit Union a general power of attorney authorizing the Credit Union to act on Buyer’s behalf to effect the transaction;

Whether done electronically or otherwise, DMV will not look behind that action.

There should be only one odometer reading—not two.

  • Credit Union employee signs the original paper title certificate odometer disclosure acknowledgment on behalf of Buyer as follows:  “<<Buyer’s Name>> by <<Employee>>, <<title>> XYZ Credit Union, attorney in fact.”
  • Credit Union completes the application for title – no odometer needed on this document as it’s on the title itself.
  • Credit Union employee signs the original title application on behalf of the Buyer as follows:  “<<Buyer’s Name>> by <<Employee>>, <<title>> XYZ Credit Union, attorney in fact.”
  • Credit Union mails DMV the original title certificate, original application for new title (both with wet signatures as noted above), and a printed copy of the POA executed by the borrower on which is an original (wet) signature of Credit Union employee that the copy is “certified true copy.”

Member (Borrower) is Purchaser; Seller Discloses Odometer Reading Using Secure Odometer Disclosure Form

In this scenario, the credit union has made a loan to the buyer (member) and issued a check or otherwise transmitted loan proceeds to the seller.  The buyer/borrower has taken possession of the vehicle and the seller sends—via standard mail, with wet signature—the original Secure Odometer Disclosure Form to the credit union.

The lien holder releases its lien on the original title certificate and transmits the original title certificate to the credit union.  The credit union will assemble the documents for transmission to the DMV.

Below are the specific steps the borrower and the credit union should follow in connection with application for a new title in this scenario:

  • Borrower/buyer electronically authenticates and sends to credit union a general power of attorney authorizing the credit union to act on borrower’s behalf to effect the transaction.

Whether done electronically or otherwise, DMV will not look behind that action.

There should be only one odometer reading—not two.

  • Credit union employee signs the original Secure Odometer Disclosure form acknowledgment on behalf of Buyer as follows:  “<<Buyer’s Name>> by <<Employee>>, <<title>> XYZ credit union, attorney in fact.”
  • Credit union completes the application for title – no odometer needed on this document as it’s on the Secure Odometer Disclosure Form.
  • Credit union employee signs the original title application on behalf of the Buyer as follows:  “<<Buyer’s Name>> by <<Employee>>, <<title>> XYZ credit union, attorney in fact.”
  • Credit union sends DMV the original title certificate, the original Secure Odometer Disclosure Form provided by seller, the original application for new title (both with wet signatures as noted above), and a printed copy of the general POA executed by the Buyer on which is an original (wet) signature of credit union employee that the copy is “certified true copy.”

To learn more about this change or how it applies to your credit union, contact John Trull at jtrull@nwcua.org or  503.350.2209.

Questions about this story? Contact Eric Horvath: 503.350.2222, ehorvath@nwcua.org.

 

Posted in Advocacy News, NWCUA.