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Deposition challenges timing of BMV overcharges

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A former deputy director at the Indiana Bureau of Motor Vehicles says he told agency leaders as early as 2010 that many BMV fees exceeded what was authorized under Indiana law but that the agency kept overcharging Hoosiers for at least two years to avoid budget troubles.

Matthew Foley's allegations are included in an 88-page deposition taken as part of a class action lawsuit against the BMV in Marion Superior Court. The suit seeks to recoup $30 million to $40 million that the BMV overcharged Indiana motorists for personalized license plates, vehicle registrations and other services, The Indianapolis Star reported.

Foley's statements contradict those of former chief of staff and BMV Commissioner Scott Waddell, whose own deposition stated that the first indication of possible overcharges came when a lawsuit over drivers' license fees was filed in March 2013.

"We were completely blindsided by it," Waddell said.

The lawsuit alleges the BMV concealed and continued the overcharges. If Foley's allegations are proven true, limits on the time period for which customers can seek refunds would be voided. Absent that "fraudulent concealment," the statute of limitations would allow refunds going back only six to 10 years.

BMV spokesman Josh Gillespie declined to comment, saying the agency does not discuss pending litigation.

Foley also said agency officials didn't want to cut fees or refund customers and instead tried to rewrite regulations to match what was being charged.

"There was a concern that the BMV would need to potentially lay off employees or go back to the well and borrow money again when they had very publicly repaid the last of its government — or state-borrowed loans the prior year," he said.

The new regulations never took effect, and the overcharges continued until last year.

Foley's warnings — via email, meetings and other communications with BMV officials — occurred during the administration of former Gov. Mitch Daniels, who prided himself on efforts to professionalize the BMV and end its long wait times.

State budget documents show that from 2006 to 2013, the BMV returned more than $47.6 million in unspent funds from its budgets.

The BMV acknowledged last June that it had overcharged drivers for operator licenses. In November, it agreed to refund $30 million to motorists in a separate class action lawsuit involving those charges. Indianapolis law firm Cohen & Malad collected $6.3 million in fees in that case.

The agency also has admitted overcharging dozens of other fees, ranging from $11 on antique vehicle registrations to 50 cents on motorcycle endorsements for operator licenses.

BMV officials have said they didn't realize motorists were overpaying until March 2013 and were unaware of the scope of the problems until an independent review concluded last fall.

Gerry Lanosga, president of the Indiana Coalition for Open Government, said Foley's deposition raises questions about the BMV and called for an investigation by the state inspector general.

"Citizens have a right to expect an agency that discovers a problem like this to make it public and do something to fix it," he said.

A spokeswoman for Gov. Mike Pence declined comment.

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  1. Ah yes... Echoes of 1963 as a ghostly George Wallace makes his stand at the Schoolhouse door. We now know about the stand of personal belief over service to all constituents at the Carter County Clerk door. The results are the same, bigotry unable to follow the directions of the courts and the courts win. Interesting to watch the personal belief take a back seat rather than resign from a perception of local power to make the statement.

  2. An oath of office, does it override the conscience? That is the defense of overall soldier who violates higher laws, isnt it? "I was just following orders" and "I swore an oath of loyalty to der Fuhrer" etc. So this is an interesting case of swearing a false oath and then knowing that it was wrong and doing the right thing. Maybe they should chop her head off too like the "king's good servant-- but God's first" like St Thomas More. ...... We wont hold our breath waiting for the aclu or other "civil liberterians" to come to her defense since they are all arrayed on the gay side, to a man or should I say to a man and womyn?

  3. Perhaps we should also convene a panel of independent anthropological experts to study the issues surrounding this little-known branch of human sacrifice?

  4. I'm going to court the beginning of Oct. 2015 to establish visitation and request my daughters visits while she is in jail. I raised my grandchild for the first two and half years. She was born out of wedlock and the father and his adopted mother wantwd her aborted, they went as far as sueing my daughter for abortion money back 5mo. After my grandchild was born. Now because of depression and drug abuse my daughter lost custody 2 and a half years ago. Everyting went wrong in court when i went for custody my lawyer was thrown out and a replacment could only stay 45 min. The judge would not allow a postponement. So the father won. Now he is aleinating me and my daughter. No matter the amount of time spent getting help for my daughter and her doing better he runs her in the ground to the point of suicide because he wants her to be in a relationship with him. It is a sick game of using my grandchild as a pawn to make my daughter suffer for not wanting to be with him. I became the intervener in the case when my daughter first got into trouble. Because of this they gave me her visitation. Im hoping to get it again there is questions of abuse on his part and I want to make sure my grandchild is doing alright. I really dont understand how the parents have rights to walk in and do whatever they want when the refuse to stand up and raise the child at first . Why should it take two and a half years to decide you want to raise your child.The father used me so he could finish college get a job and stop paying support by getting custody. Support he was paying my daughter that I never saw.

  5. Pence said when he ordered the investigation that Indiana residents should be troubled by the allegations after the video went viral. Planned Parenthood has asked the government s top health scientists at the National Institutes of Health to convene a panel of independent experts to study the issues surrounding the little-known branch of medicine.

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