WASHINGTON, D.C. -

Along with scheduling a member webinar to discuss the Telephone Consumer Protection Act, the American Financial Services Association's National Title Solutions Forum submitted a comment letter last week to the Georgia Department of Revenue, the Association of Commissioners of Georgia and the state's tax commissioners.

The letter is part of an effort to rectify what officials called "serious concerns" with vehicle ad valorum taxes in the state.

AFSA indicated that state law permits consumers who are registering a vehicle in Georgia for the first time to pay the required taxes in two installments, half at the time of registration and half within 12 months.

Monica Mastrangelo, chair of the National Title Solutions Forum and the title and administrative support manager at CarMax, pointed out the current arrangement often leaves financial institutions responsible for the second half of the tax if they seek to acquire the title.

"The title issuance inhibition threatens the security interest of the lender and prevents the swift release of title for any future sale of the vehicle," Mastrangelo said in the letter.

"Lenders seeking to acquire the title for various reasons including payoff of the account, bankruptcy, repossession and impoundment of the vehicle are unable to do so until the fees are satisfied," she continued. "Subsequently, the lender or dealer may be required to pay the tax on the vehicle in order for the state to release the title.

"Additionally, lenders may be providing inaccurate payoff quotes to their customers and dealers if they are unable to pay the outstanding amount on the customer's behalf," Mastrangelo went on to say.

Mastrangelo's letter details NTSF's suggestions for fixing the statute, including permitting financial institutions to contact county tax commissioners to obtain tax information and to have the ability to satisfy the tax payment on the account.

The specific suggestions included:

1. Lenders being able to contact county tax commissioner's office to obtain tax information.

2. Request support in urging the Georgia Department of Revenue to automate this process with online access or automated phone inquiry for obtaining taxes owed. If a secondary lien is filed on this account, please provide the current security interest of the vehicle.

3. Lenders must be allowed the ability to make payment to satisfy the tax payment on the account.

"Lenders have received mixed results when we have attempted to satisfy this tax payment to obtain the title," Mastrangelo said. "Your cooperation in helping us satisfy this requirement will ensure you receive your complete tax payment and lenders are able to meet the intent of the statute."

AFSA to Detail TCPA Concerns During Member Webinar

In other association news, officials announced the Telephone Consumer Protection Act (TCPA) will be the focus of AFSA's second compliance outlook webinar to be held on Jan. 30 at 3 p.m. EST. The presenters on tap to be a part of the session include:

—Kelly Lipinski, member at McGlinchey Stafford
—Chuck Gall, associate at Dreher Tomkies
—Eric Troutman, member at Severson & Werson

The trio plans to discuss recent TCPA litigation and the TCPA regulations that went into effect last October.

AFSA recapped that the TCPA, enacted in 1991, was intended to protect consumers from aggressive telemarketers by placing a variety of restrictions on phone calls, text messages, and faxes to consumers.

"However, because of certain language in the act, the TCPA affects many ways in which businesses contact their customers," the association said. "Recently, TCPA litigation has greatly increased because the statute provides for damages of up to $1,500 per violation, which can lead to substantial windfalls for plaintiffs' attorneys.

"Most of the recent suits arise out of the TCPA's prohibition on calls or transmissions using an automatic telephone dialing system," AFSA went on to say.

Officials mentioned that recent amendments to TCPA regulations by the Federal Communications Commission went into effect on Oct. 16. They said these rules narrow and eliminate key statutory exemptions.

AFSA has expressed its concerns with the TCPA and its implementing regulations to Congress and the FCC.

Mostly recently, AFSA submitted a letter on Jan. 3 to the FCC regarding the commission's interpretation of the TCPA. The letter supports a petition filed by Glide Talk.