Deposition challenges timing of BMV overcharges

Back to TopCommentsE-mailPrintBookmark and Share

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.


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
Subscribe to Indiana Lawyer
  1. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  2. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  3. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  4. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  5. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.