The leader of Louisiana’s Office of Motor Vehicles defended its mass mailing of 1.1 million collection letters to drivers for lapsed insurance coverage today, saying the effort was aimed at clearing records and wasn’t a “money grab” for a cash-strapped agency.
As The Associated Press reports, Col. Mike Edmonson told a panel overseeing debt recovery efforts for state agencies that a new round of letters will be sent out soon to people who haven’t paid traffic fines listed on their driving records.
Louisiana drivers are required to have insurance on their vehicles. The letters, sent earlier this month, were seeking as much as $444 million in fine payments from about 550,000 drivers, with fines ranging from $125 to $525 for each violation of insurance coverage. Some of the alleged insurance violations reach back to 1986.
The collection efforts generated complaints from drivers who said they were being improperly accused of expired insurance on vehicles they’ve sold or on vehicles now registered in other states where they’ve moved. Critics accused Edmonson, the state police superintendent who oversees OMV, of pushing collections to finance a trooper pay raise tied to the efforts.
“This was never driven by any pay raise,” Edmonson told The AP after the hearing. “This was never driven by a money grab.”
Members of the Cash Management Review Board weren’t critical of the collection efforts, but they stressed drivers needed to understand their options for responding to the letters and making their case if they feel improperly charged.
Edmonson told the board the collection letters were based on lapsed coverage information submitted by insurance companies.
“We’re not after the money unless you owe it to us. But we have to clear the record,” Edmonson said. “We want to work with people. I understand this is overwhelming.”
Likely about 65% of those who received collection letters owe OMV money, Edmonson estimated. Read the full story.
