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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

ADVERTISEMENT