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005-10 "Red Flag" Program Change

Registration and Title Bulletin - #005-10

Date: December 9, 2010

To: All County Tax Assessor-Collectors

Subject: "Red Flag" Program Change.

These documents contain text of correspondence sent by TxDMV to the county tax assessor-collectors, statutory agents who provide vehicle registration and titling services for citizens in Texas. This information is provided to apprise the general public of issues affecting the state's vehicle titling and registration process.


To announce that counties will now submit suspected fraudulent title transactions in "Red Flag" envelopes. Counties should request the envelopes first from their Regional Office so that they will have them on hand to process suspected fraudulent titles.


The "Red Flag" program allows counties to submit suspected fraudulent title transactions for further investigation. The program is specifically targeted toward title and odometer fraud. Alterations to titles that either reduce the vehicle mileage or remove brands such as "Salvage" or "Not Actual Mileage" should be the areas of focus when inspecting for fraud. Other areas that may fall under the program include:

Counterfeit titles submitted to obtain a Texas title

Mechanic Lien used to "wash" a lienholder

Fraudulent and multiple applications for Certified Copy of Title

Fraudulent lien release

Title transactions that do not have matching signatures do not fall under the "Red Flag" program.


Under the "Red Flag" program, the clerk will process the title transaction as normal but submit the suspected fraudulent transaction under the "Red Flag" program which will allow it to be investigated further by enforcement officials. The suspect transaction and original documents will be placed in the "Red Flag" envelope (one transaction per envelope) and submitted to Title Control Systems (TCS) with their title package report. On the envelope is a space for the clerk to provide an explanation as to why the transaction is being submitted. If the clerk needs additional space, please submit on a sheet of paper along with the documents.


If you have any questions or need any additional assistance, please contact your local Vehicle Titles and Registration Division regional office.

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