ILNews

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. My daughters' kids was removed from the home in March 2015, she has been in total compliance with the requirements of cps, she is going to court on the 4th of August. Cps had called the first team meeting last Monday to inform her that she was not in compliance, by not attending home based therapy, which is done normally with the children in the home, and now they are recommending her to have a psych evaluation, and they are also recommending that the children not be returned to the home. This is all bull hockey. In this so called team meeting which I did attend for the best interest of my child and grandbabies, I learned that no matter how much she does that cps is not trying to return the children and the concerns my daughter has is not important to cps, they only told her that she is to do as they say and not to resist or her rights will be terminated. I cant not believe the way Cps treats people knowing if they threaten you with loosing your kids you will do anything to get them back. My daughter is drug free she has never put her hands on any of her children she does not scream at her babies at all, but she is only allowed to see her kids 6 hours a week and someone has to supervise. Lets all tske a stand against the child protection services. THEY CAN NO LONGER TAKE CHILDREN FROM THERE PARENTS.

  2. Planned Parenthood has the government so trained . . .

  3. In a related story, an undercover video team released this footage of the government's search of the Planned Parenthood facilities. https://www.youtube.com/watch?v=ZXVN7QJ8m88

  4. Here is an excellent movie for those wanting some historical context, as well as encouragement to stand against dominant political forces and knaves who carry the staves of governance to enforce said dominance: http://www.copperheadthemovie.com/

  5. Not enough copperheads here to care anymore, is my guess. Otherwise, a totally pointless gesture. ... Oh wait: was this done because somebody want to avoid bad press - or was it that some weak kneed officials cravenly fear "protest" violence by "urban youths.."

ADVERTISEMENT