DMV hits new delays because of old forms

Aaron Clemens

Friday, May 26, 2000 | 10:50 a.m.

The $35 million Genesis computer system was supposed to increase efficiency and improve customer service at the Department of Motor Vehicles and Public Safety, but a recent shift to typewritten forms leaves some wondering what kind of modernization the DMV got.

The form comes as the result of a court order to follow a federal law intended to foil corrupt car dealers. The old, generic form facilitated cheating by allowing a dealer to sign as both buyer and seller without letting the buyer see the document, a lawyer familiar with the order says.

The new form is a watermarked original that must be typewritten with carbons and sent to Carson City, where it is entered and checked by hand by DMV clerks.

The backlog since the new forms went into effect is almost two months, according to DMV. It's closer to four to five months, if you ask local credit union officials who are trying to work with the DMV for a smoother system.

The confusion and frustration the form has caused seem to be immeasurable.

"Every time we call, we get a different answer," said Sue Longston, chief executive officer of SONEPCO Credit Union. Thank goodness, she said, her credit union still has a typewriter. But she wondered whether credit unions were ready to step back to 20th century technology.

The problems began in February, when District Judge Valorie Vega ruled that the DMV must begin following 1991 state and federal laws establishing more secure vehicle title transfers. The laws require a new title to be issued before a car can be resold.

The order was the result of a case brought by attorney Dan Wulz in which a car buyer was not told by the dealer that a car's odometer had been changed.

"We weren't enforcing (the law) for credit unions or dealers," admits DMV Programming Director Carol Falk. "We were lax."

Vega ordered compliance with only 96 hours' notice. Susanne Sliwa, deputy attorney general who specializes in DMV-related cases, said the state never denied that something was wrong but officials were surprised by the short amount of notice given.

No forms had been printed, no procedures were in place.

Many credit unions found out about the new rules only when hundreds of the title transfers they send to DMV to be processed were rejected, Longston said. When they were told that they must buy the state's form, none were available anywhere, she said.

What's worse, said County Credit Union Vice President of Sales Randy Baldwin, the new form does not make transferring titles more secure for financial institutions.

With the old form, notarized signatures were required, but the new form does not require a notary. "The new forms are hard to duplicate, but easy to forge," he said.

While that may be true, Wulz said, financial institutions don't have a motive to create fraudulent titles, because they are loaning money for the purchase. On the other hand, Wulz said, the new form means dealers cannot apply for a new title on a car unless the customer signs off on an odometer check.

DMV spokesman Kevin Malone confirmed that forgery has not been a problem with the new or old forms. The new process protects consumers and credit unions by ensuring they see the mileage, he said.

But a glitch the DMV did not anticipate is how the order affects private third-party car sales, Malone said. Many people have come into the DMV following the old procedure of signing a title that has been signed over to them by a third person, only to be turned away.

But the financial institutions are the most vocal critics, and Falk met with representatives of 12 of them on Wednesday in Las Vegas to try to clarify the changes in policy.

She said later the DMV recognizes the problem and is working hard to reduce the wait to the typical 10 to 14 days for those who come into the DMV with their titles. Dealers and financial institutions can make half-hour appointments with the DMV's main office for title transfers if they need to cut down on the turnaround time, she said.

Malone said that technology really is making the service and efficiency at the DMV better. Internet license and registration renewal are now available, and some DMV business can be done through a new toll-free number.