A class-action complaint has been filed in California state court against the state’s Department of Motor Vehicles for violating the state’s debt collection law by adding unlawful fees and penalties to the renewal fees for driver’s licenses and vehicle registrations.
The Background: The plaintiff received three emails notifying her of the deadlines to renew her driver’s license and vehicle registration, recommending she take care of it online, which she did. When she renewed the registration and license, she used her banking information — routing number and account number — to pay for the transactions. Six weeks later, she received a letter saying that her check was not honored by the bank and that she needed to pay $71, which included a $30 service fee.
- By this point, the plaintiff had already received her new documents in the mail.
- The plaintiff paid the $71.
- Protocols from the National Automated Clearing House Association should have prevented this from occurring, according to the complaint. But dozens of other individuals have had similar experiences, according to one online forum. They make a timely payment via the DMV’s website, only to later receive a letter from the DMV demanding payment and additional fees related to a dishonored check.
The Claims: The suit accuses the DMV of violating Section 1692f of the Fair Debt Collection Practices Act, which is incorporated by the RFDCPA. The DMV’s attempts to add unlawful fees and penalties to license and renewal fees constitute an unfair or unconscionable means to collect a debt, according to the complaint.
- The complaint seeks to included anyone from California who renewed their license or vehicle registration online via the DMV website, made a full payment of the fee, and then received a letter or notification that the DMV was demanding payment because the online payment was not honored, and then paid additional fines and fees.
