Office of Motor Vehicles Sends Out 2nd Round of Collection Letters

Sign at Louisiana Office of Motor Vehicles

Office of Motor Vehicles Sends Out 2nd Round of Collection Letters

 

Sign at Louisiana Office of Motor Vehicles

Sign at Louisiana Office of Motor Vehicles

One month after the Louisiana OMV sent out letters to 1.2 million drivers whose insurance had lapsed, a second round of follow-up warning letters were mailed to 700,000 drivers informing them that they were now one step closer to having their account sent to Collections.

Recipients are being given 30 days to pay penalties for expired insurance, fines ranging from $125 to 525, according to initial notices.

Drivers who remain delinquent will receive a 3rd notice and have 15 days to pay before OMV uses some of it’s “tools” to collect. Those “tools” range from seizing the funds from people’s bank account, suspending licenses for hunting and fishing and if applicable, recommending that State Licensing Boards suspend professional licenses, which real estate agents, teachers, attorneys, etc. are required to have in order to practice.

So far, the OMV has collected $8.155 million of the $444 million it was owed, since the start of the “Warning Letter” campaign. They have cleared approximately 55,000 accounts; 39,000 people paid the fines owed, and 17,000 without payment due to errors on the part of OMV.

AWS is monitoring the situation for further developments and will keep you posted here on our blog. If your insurance has lapsed, call us today and one of our agents will assist in enrolling your vehicle with the proper coverage in compliance with state law.

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Melinda Martin

Account Executive

Melinda began her insurance career in 1985 with Alexander & Alexander where she received her Property & Casualty and Life & Health license. Since then she has worked at various agencies in the New Orleans area and in California as a senior account manager for Employee Benefit Plans.  While in California, she was also the Membership Director for the Burbank Chamber of Commerce. Melinda joined the AWS team in July of 2015.

Michael A. Seeling

Vice President

Graduated from the University of Louisiana at Lafayette with a B.A. in Insurance Risk Management and is a graduate of Archbishop Rummel High School in New Orleans. He joined AWS in October of 2008 and has been awarded the Patient Protection and Affordable Care Act Certification (PPACA). Additionally, he is working towards his Certified Insurance Counselor (CIC), Registered Health Underwriter (RHU), and Registered Employee Benefits Consultant (REBC) designations. He is also a member of the National Association of Health Underwriters (NAHU), National Association of Insurance Financial Advisors (NAIFA), and is an active member of the Fore!Kids foundation.