DIVISION OF MOTOR VEHICLES
To: Tax Collectors and License Plate Agents
From: Carl A. Ford, Director
Subject: Individuals as Lienholders
Advisory Date: 02/28/05 Implementation Date: Immediately
Advisory Number: T05-05
In the past, the general policy on how an individual needed to be shown as a lienholder was to create a business record for the individual rather than use the driver license record. Creating the individual customer as a business means that the personal information (address) contained in that business record is no longer protected under the DPPA laws. Therefore, the best option would be to select the individual using the driver license number.
One problem that could occur is when more than one individual wishes to be shown on the same lien. Two options are available to handle this situation.
There are advantages and disadvantages to either option. In both options only one lienholder address is recorded, therefore, whenever the lienholder is notified in cases such as a tow, only one address is available. Furthermore recording the lienholder as a business means that personal information such as the address is available through public access. The customer should be advised of the risks involved in creating the business customer record.
There is also a concern that tax collector clerks do not have access to change the address once the individual's record is marked as a lienholder. Currently, a lienholder's address cannot be modified except by a Help Desk representative. We are requesting programming to allow tax collector clerks to change the address of a lienholder when the lienholder is an individual. Please continue to contact the Help Desk until programming is implemented.
If you have any questions regarding the above information, please contact your Tax Collector Help Desk.