DMV slams drivers with late fees after they register their cars with e-checks

SAN JOSE, Calif. (KGO) — It’s transpired to a number of 7 On Your Side viewers. They renew their registration on the DMV web-site, get a confirmation of payment — and even get their new registration card and sticker in the mail. But then, a month later, they are hit with a demand from customers for payment furthermore late fees and penalties — and no thought why.

“To be really truthful, I didn’t imagine it. I thought it was a rip-off,” Terri Brown of San Jose said.

Brown’s ordeal started two years in the past when she paid out for her car or truck registration on line.

She bought a receipt, the DMV mailed her registration stickers and almost everything appeared fantastic — but weeks later, she got a letter from the DMV, demanding payment additionally late costs and penalties.

Brown imagined it was a fake.

“I even took it to my mother. I said, ‘Mom, seem how superior these fellas are acquiring at scamming,'” reported Brown.

But it was genuine. The DMV notice explained the electronic look at she submitted was no superior, even though the DMV receipt mentioned “productive payment.” Now, she experienced to fork out $148 in late service fees and penalties.

“I experienced to go get a cashier’s look at and go in man or woman to the DMV. And I believed the difficulty was over,” stated Brown.

But it wasn’t. The similar thing took place when Brown renewed on the web once again. She paid by e-check out, obtained her registration and stickers — but months later the DMV despatched this demand from customers for payment moreover penalties, saying her e-check bounced.

“I just could not believe that that it was the exact thing — acquired the thriving payment been given, my registration stickers. And now I’m being charged this astronomical, you know, late cost, which, like I mentioned, the method is damaged,” explained Brown.

Brown suggests the DMV need to have notified her proper absent if the check out failed to go via, rather of waiting around till she was strike with late fees.

“I are not able to consider how a lot cash they’re pulling in with these 60{3df20c542cc6b6b63f1c547f8fb389a9f235bb0504150b9df2ff264aa9a6c16c} penalties,” reported Brown.

“I felt that this was extremely quite odd and deceptive, even fraudulent,” Alex Lee of Saratoga.

The identical issue occurred to Lee. He paid out with an e-examine, received a receipt for payment — and the DMV sent his registration, then — the shock.

“I’m sorry, your, your payment actually did not go through and now you owe us a late payment price,” said Lee.

The DMV reported he now owed $457 and could only pay out by cashier’s check out or funds buy.

So Alex mailed the payment — but as a substitute of a renewal, he obtained a ultimate desire for payment, threatening to seize his automobile!

“Double the amount, and also your registration may possibly get locked and forfeited. And I just, and I was scratching my head, like, this is ridiculous,” said Lee.

Turns out equally Lee and Brown had mistakenly entered their price savings account quantities, which would not produce an e-check out. The DMV acknowledged its on line payment program was accepting payments even if an account number was invalid — and it mailed out registration cards in any case, quote, “as a courtesy to the shopper.” But customers claimed late fees were being anything but a courtesy.

“If this was a non-public firm I would assume it was purposeful,” claimed Lee. “It really is sort of a little bit about the top rated to just threaten to acquire absent my auto. And the technique is very outdated.”

On the other hand, right after 7 On Your Side’s inquiries, the DMV modified the e-verify procedure to flag incorrect account figures.

It also refunded late fees for Brown and Lee, and a number of others who came to 7 On Your Facet for enable, declaring: “As quickly as the DMV grew to become aware of the improve in the number of buyers inconvenienced by this problem, the department took motion to further more make improvements to the e-examine payment approach and deal with consumer issues.”

The DMV did not say how several clients were being hit with unwarranted late costs but promised refunds for all those who considered their payment went by. If it took place to you, get in touch with 7 On Your Aspect.

Get a glance at additional stories and videos by Michael Finney and 7 On Your Aspect.

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