How to Check Vehicle Titles, Ownership and Avoid Fraud in Illinois

Recently, several readers at FS CORPS have encountered issues with vehicle titles in Illinois. These issues often arise from deceptive practices like title washing, title jumping, or title fraud. As vehicle transactions increasingly occur online through platforms like eBay, Facebook Marketplace, or Craigslist, the risks of encountering fraudulent activities increase. Whenever you’re buying a used vehicle from an individual or a dealership, take a proactive step to verify the legitimacy of the title, as well as the vehicle’s history, before completing the purchase.

Vehicle title fraud, such as title washing, title jumping, and duplicate title fraud, can lead to significant legal and financial consequences for buyers. These deceptive practices often involve concealing a vehicle’s true history, including improper ownership transfers, liens, accidents, or salvaged vehicles. You could lose the vehicle to the prior lien holder or person who has been victim of vehicle title fraud, and/or unable to register your newly acquired vehicle.

Please note an important distinction when purchasing used vehicles: when a buyer purchases a vehicle that has an Illinois Certificate of Title, in good faith and for value without notice of any outstanding rights or interests of others, Illinois courts will generally protect the “bona fide purchaser.” If, however, the vehicle has a title outside of Illinois and the buyer then attempts to title and/or register that vehicle and obtain an Illinois title and registration, the Illinois Secretary of State may decline to title or register that vehicle AND Illinois courts may also later protect the out of state registered “owner” or “lien holder” who may have been subject to fraud, theft, title washing, title jumping or duplicate title fraud. Also, any time that you see the legend on the title, DUPLICATE, consider walking away.

This article provides a discussion at how these fraudulent activities occur, offers detailed methods for verifying a vehicle’s title and history, and outlines practical steps to protect yourself during the purchasing process.

Title Washing: What You Need to Know

Title washing refers to the illegal act of altering or concealing a vehicle’s title history to hide its true condition. This deceptive practice often involves moving a vehicle between different states with varying title branding laws to erase salvage or rebuilt status. For instance, a vehicle declared a total loss after an accident might be “washed” to appear as though it has a clean history, misleading unsuspecting buyers.

How to Detect Title Washing:

• Compare State Laws: Familiarize yourself with title branding laws in Illinois and any state where the vehicle has been previously registered. States with less stringent laws may be used as staging points for title washing.
• Use Historical Records: Services like Carfax and AutoCheck provide historical data that can reveal inconsistencies in title status over time.
• Inspect Branding Indicators: Look for signs such as “salvage,” “rebuilt,” or “flood” branding on the title itself or in accompanying records.

Title Jumping: What You Need to Know

Title jumping occurs when a vehicle’s ownership is transferred without proper documentation or state registration. This often happens when sellers seek to avoid paying transfer fees or disclosing liens, leaving buyers with an invalid or incomplete title.

Key Warning Signs of Title Jumping:

• The seller’s name does not appear on the title.
• Claims of a “family friend” or intermediary handling the transaction.
• Sellers pressuring for cash payments or immediate deals.

Steps to Prevent Title Jumping:

• Always verify that the seller’s name matches the name on the title.
• Insist on proper documentation, including proof of identity and ownership.
• Conduct a title check with the Illinois Secretary of State to ensure the title’s legitimacy.

Duplicate Title Fraud: What You Need to Know

Duplicate title fraud involves the creation of a counterfeit or second title for a vehicle. This tactic is often used to facilitate the sale of stolen vehicles or those with unresolved liens. Buyers who fall victim to this scheme may face legal disputes, repossession, or financial liabilities. Fraudsters continually attempt new criminal methods to steal. Whenever a title states “Duplicate,” consider walking away. You could lose the vehicle to the prior lien holder or person who has been victim of vehicle title fraud, and/or unable to register your newly acquired vehicle.

• If an Illinois Certificate of Title states the following: “This is a duplicate certificate and may be subject to the rights of a person under the original certificate.” Consider walking away from purchasing the vehicle. It is possible that the prior lien holder’s interest has been “washed away” or “cleaned” by a prior registered owner and the Certificate of Title appears to be clean but it is not.
• Also, anyone in a police department or the Illinois Secretary of State is immune from liability should you rely on their advice that the “Certificate of Title” is clean.

How to Safeguard Against Duplicate Title Fraud:

• Request the original title from the seller and examine it closely for tampering or irregularities.
• Should the title have the legend, “DUPLICATE” stop and consider another vehicle.
• Verify the title’s authenticity through the Illinois Secretary of State.
• If the IL SOS issued a duplicate title, courts may later extinguish your interest and return the vehicle to a prior lien holder.
• Supplement your checks with third-party services like Carfax, AutoCheck or NICB VINCheck.

Illinois Step-by-Step Guide to Verifying a Vehicle Title

1. Illinois Secretary of State Online Inquiry

• Obtain the VIN: Always request the full Vehicle Identification Number (VIN) from the seller. Refusal to provide this information is a red flag.
• Access the Title and Registration Inquiry Page: Visit the Illinois Secretary of State’s inquiry page.
• Perform the Search: Enter the VIN to retrieve title details. Key elements to check include matching VIN and title number, current odometer reading, title branding (e.g., “original” vs. “salvage”) and presence of any liens.
• If the IL SOS issued a duplicate title, courts may later extinguish your interest and return the vehicle to a prior lien holder.
• Failure to Match: Should any information fail to match with what the seller has presented or told to you, or “Duplicate” or “salvaged,” appear, exercise extreme caution and it would be wise to purchase the added search and potential protection of a Carfax or AutoCheck search result, as well as warranty.
• Any DUPLICATE title can be later awarded to a prior lien holder due to duplicate title fraud. You could lose your interest. And, you have no recovery against the Secretary of State.

2. Visiting an IL SOS Facility

• Arrange to Meet the Seller: Near a Secretary of State facility.
• Ask the IL SOS Staff: To verify the title’s authenticity and provide documentation of their findings.
• Keep Records of the Visit: Including the staff member’s name and any provided information.
• Failure to Match: Should any information fail to match with what the seller has presented or told to you, or “Duplicate” or “salvaged,” appear, exercise extreme caution and it would be wise to purchase the search and potential protection of a Carfax or AutoCheck search result, as well as warranty.
• Any DUPLICATE title can be later awarded to a prior lien holder due to duplicate title fraud. You could lose your interest. And, you have no recovery against the Secretary of State.

3. Additional Verification Methods

• Any DUPLICATE title can be later awarded to a prior lien holder due to duplicate title fraud. You could lose your interest. And, you have no recovery against the Secretary of State.
• Call the IL SOS Office: Dial 800-252-8980 for a phone consultation to verify title information.
• Submit a Written Request: If time permits, send a formal inquiry to the IL SOS. Allow one to two weeks for processing.

The Role of Third-Party Services in Title Verification

Carfax Vehicle History Reports

• Carfax provides extensive information about a vehicle’s history, including accident reports, maintenance records, and previous ownership. While the use of this service incurs a fee, it provides invaluable insights to ensure a vehicle’s legitimacy as well as history. 
• Carfax also advertises that Carfax’s Buyback Guarantee protects consumers from buying a vehicle with a DMV-issued title brand: “The CARFAX Buyback Guarantee helps protect consumers from unknowingly buying a vehicle with a DMV-issued title brand, such as Salvage, Junk, Rebuilt, Fire, Flood, Hail, Lemon/Manufacturer Buyback, Not Actual Mileage, or Exceeds Mechanical Limits. If you find that any of these title problems were reported by a DMV and not included in a report, you may qualify.”

AutoCheck Reports

• AutoCheck complements Carfax by offering additional details on auction history and title branding. It is particularly useful for identifying vehicles involved in multi-state transactions. 
• AutoCheck also provides this service when purchased: “AutoCheck Buyback Protection is a policy that will compensate you by buying back your vehicle under certain circumstances: if the AutoCheck vehicle history report you purchased or received from a dealer has missed a state title brand, when a title brand was reported by the state and provided to Experian, and prior to the date the vehicle history report was run. The purchase price is up to 110% of the J.D. Power NADA guides published retail value PLUS up to $500 in aftermarket accessories.”

NICB VINCheck

• The National Insurance Crime Bureau’s VINCheck is a free tool that identifies vehicles with salvage or theft records. While not as comprehensive as paid services, it serves as a valuable additional step in the verification process.

In my personal purchases, I have utilized all of the above whenever I purchased an out of state vehicle with a title other than Illinois.

Additional State-Specific Title Checks

Florida Vehicles

Florida offers a convenient online service for checking Florida vehicle title and registration details through the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). The Florida Vehicle Title Check allows buyers to verify whether a vehicle has a valid title, check for any liens, and ensure the vehicle hasn’t been reported as stolen or involved in any serious accidents. This service is useful for individuals considering purchasing a vehicle from Florida, as it provides an extra layer of security when verifying title details.

Texas Vehicles

In Texas, the Department of Motor Vehicles (DMV) offers an online service for checking vehicle title and registration information. The Texas Title Check allows you to verify the title status, including whether the vehicle has any outstanding liens or if it’s been reported as a salvage or rebuilt vehicle. You can access this service through the Texas DMV website for a detailed vehicle history.

New York Vehicles

The New York Department of Motor Vehicles (DMV) provides a Title and Registration Lookup tool that lets buyers check the title status of a vehicle. This service is designed to verify if a vehicle is properly titled in New York and whether there are any liens or legal encumbrances associated with the vehicle. It’s essential for anyone considering a purchase in New York to confirm these details before finalizing a transaction.

Florida Vehicles

When purchasing a vehicle from another state, it’s crucial to verify the title status and history specific to that state. Many states offer online tools and services that provide valuable title and registration information, similar to Illinois. By using these resources, you can attempt to discover the legitimacy of the out of state title and avoid potential fraud, including title washing, jumping, or other deceptive practices. Below are key state-specific title check resources for several states across the U.S.

New Jersey Vehicles

The New Jersey Motor Vehicle Commission (MVC) offers a similar service that allows you to check vehicle title information. This includes verifying whether the vehicle has any liens, whether it has been reported as stolen, or if it’s been in any accidents that could affect its value. Checking the title status on the New Jersey MVC website is a crucial step for prospective buyers to ensure a clean history for their vehicle.

California Vehicles

California has made significant strides in digitalizing its vehicle title services. The California Department of Motor Vehicles (DMV) now offers an online service for checking a vehicle’s title and registration status. This tool allows buyers to verify whether the vehicle is clean of any issues, such as outstanding liens, salvage history, or title discrepancies. It’s particularly important for out-of-state buyers to check the title when purchasing vehicles from California.

Conclusion

Vehicle title fraud, including title washing, title jumping, and duplicate title fraud, can cause significant financial loss and legal complications for unsuspecting buyers. Understanding these fraudulent practices and utilizing official channels, like the Illinois Secretary of State’s title and registration inquiry service, as well as third-party services such as Carfax and AutoCheck, can help protect you from such risks.

If you believe you’ve been affected by title fraud or your vehicle has been involved in title washing or title jumping, contact FS CORPS immediately. Our experienced legal team is committed to guiding you through the process, ensuring your consumer rights are protected, and holding wrongdoers accountable for any harm caused. We are dedicated to helping you avoid being taken advantage of as well as recover compensation for any financial damages you’ve incurred.