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North Country assemblywoman introduces bill to stop 'predatory' third-party online DMV vendors

Posted 1/18/18

Assemblywoman Addie A.E. Jenne, D-Theresa, introduced legislation that she says would outlaw the licensing of certain “predatory” third-party vendors from selling access to vehicle registration …

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North Country assemblywoman introduces bill to stop 'predatory' third-party online DMV vendors

Posted

Assemblywoman Addie A.E. Jenne, D-Theresa, introduced legislation that she says would outlaw the licensing of certain “predatory” third-party vendors from selling access to vehicle registration services already performed at no additional cost by the state Department of Motor Vehicles.

The bill would prevent businesses not engaged in vehicle sales from charging residents for directions on how to register your vehicle, a service already provided by the DMV, according to Jenne’s office.

She introduced the legislation after a complaint was filed with her office from a Watertown-area constituent.

“I was shocked to learn about these deceptive business practices and I knew that I needed to do something to safeguard our residents,” Jenne said in a news release. “Today, there’s an even greater need for strong consumer protections to ensure that New Yorkers aren’t preyed upon by misleading and downright dishonest businesses, whether those businesses are brick-and-mortar stores or online entities.”

She said it’s “often hard” for consumers to determine the legitimacy of online services at a glance.

Websites including www.dmv-services.com or www.on-lineregistration.us appear to be portals to official Department of Motor Vehicles webpages, but, despite the mandatory yet hard to find disclaimer, many people are fooled into paying an unnecessary finder’s fee, the assemblywoman said.

For example, the “On-Line Registration” webpage has a banner across the top that reads “New York Motor Vehicles Service Bureau.” The site charges a $45 to $75 “Online Service Bureau” fee for registration renewals (based on “processing time”), Jenne’s office said.

Using an official-looking moniker, this website and others like it “simultaneously rip off New York State residents and tarnish the image of the Department of Motor Vehicles,” according to the assemblywoman’s office.

"It’s clear these websites provide no essential service to New York State residents. Using shady tactics and clever search engine optimization, they often target consumers who are unfamiliar with internet etiquette or are in a hurry to finalize their paperwork," Jenne said in the release. "There is no reason for businesses like these, which exist only to take money out of the pockets of hard-working state residents attempting to comply with the law, to be licensed by the Department of Motor Vehicles.”

Jenne is also sponsoring legislation (A1445) to increase the amount of revenue retained by county governments through local Department of Motor Vehicle offices and Department of Motor Vehicles' websites.

She said county governments are still being asked to support their local Department of Motor Vehicle offices financially even as the revenue stream changes.

In order to eliminate what is becoming an increasingly unfunded mandate, counties should receive the same revenue from online transactions that originate from within their borders as they would from in-person transactions, Jenne said.

She said the legislation calls for an increase in the local share of gross receipts from 12.7 percent to 15 percent, including online transactions, so that local offices are able to fully cover their costs.

"This legislation recognizes the increased costs our counties are facing for the operation of local Department of Motor Vehicles offices,” Jenne said.