can a collection agency ask for you licese to suspend when they dont reciecve a payment from a auto wreck?

Question

A collection company out of Dallas is askin the state of kansas to suspend my license for a no proof of insurance.(never got a ticket for no insurance) and failure to pay restitution. I paid my 90.00 ticket (community service) and the case was closed. Ive called the collection office to make payment arragements but they refuse to take less then 300.00 a month. DMV or Bureau of Driver Control cant even answer how they can ask for suspension and not except a payment..Yea its a big mess but, id still like to know a answer.

Answer 1

LAWYER, get one, now.

Answer 2

In Kansas there is a report made to the Department of Motor Vehicles from every accident. In this case, from the details you provided, it appears that:
1) You had an automobile accident for which insurance was NOT listed on the required accident report form;
2) You probably in fact did not have insurance.
3) The collection agency probably tipped off the Driver Control Bureau to the fact that there was an accident without insurance.
4) Other driver probably had uninsured motorist's insurace, and said insurance paid for the damages.
5) The insurance company now wants to be paid.

In Kansas, upon receiving information that you may not have had insurance and being involved in an accident, Driver Control will send you a letter with an opportunity for you to provide them with your insurance information. They send the letter to your address listed on the driver's license. If you don't get the letter because you moved and didn't change addresses, that's too bad.

If you don't respond, then your license is indefinitely suspended. To reinstate your license, you must 1) pay a $100 reinstatement fee, 2) File a SR-22 and keep it on file for 1 year, 3) show proof that you have paid the driver of the other car, or have a court enter a judgment showing that you don't owe the money.

I suggest that you contact an attorney who can assist you in resolving this matter. For a referral, contact your local or state bar association.

Answer 3

Collection agencies are notorious for slime ball tactics. They often threaten all sorts of things, just in the hopes of scaring you into coming up with all the money at once. Remember, its in their best interests to collect everything at once. I don't know about Michigan, but in Ontario, you can make payments. As long as they are consistent, the collection agency can't do a thing. As long as you are making an honest attempt to pay, most will just accept your offer. They won't like it, but there is bugger all they can do. No they cannot revoke your license. They are nothing more than a private collection agency, NOT the government. There are very specific reasons for a license to be taken away, and not paying all the money at once is not one of the reasons. This sounds like an out and out lie to me, one that can get the agency in deep trouble with authorities. They are not allowed to harass you. Check out the website I've included. It talks about collection agency harassment and what they can and cannot do. It's a site out of the US so the info should be relevant.

Answer 4

Collection agencies have no jurisdiction whatsoever to demand license suspensions. If your state is satisfied and has no reciprocal agreement with the other state, you are off the hook license wise, but still owe the debt. There are severe penalties AGAINST COLLECTION AGENCIES within the Federal Fair Debt Collection Act (look it up) for using illicit tactics to recover debts. Making unsupported threats is a violation. Look up the law.