Motor Vehicle Commission and Surcharge Debt - Incentive Program

The MVC (formerly DMV) has announced today the creation of an MVC Surcharge Payment Incentive Pogram.  The program will run from today, June 15, 2010, though July 30, 2010, and is designed to help MVC customers in judgment address their surcharges.

It's a vicious cycle.  If you don't pay the debt, you can't reinstate your drivers' license, but without the license, you can't legally drive to work to make the money to pay the debt.

This program is designed to wipe the slate clean or help those in judgment to arrange for more affordable payments and have their driving privileges restored.  Drivers eligible for this program include those who have been placed in judgment for failing to make surcharge payments or those in judgment who have already arranged a payment plan but are having difficulties making the payments.  Drivers with outstanding surcharges related to DUI or DWI convictions are not eligible for the incentive program.

There are approximately 273,000 drivers eligible for the incentive program.  Examples of the incentives being offered are longer payment plans and interest waivers.

Drivers who receive a personalized letter need to contact the specific collection firm noted on the letter.

For more information, drivers with surcharge debt should visit the MVC website.

Revoked List: Law Repealed

Effective January 16, 2010, the legislature has repealed the provision of N.J.S.A. 39:40(g) which required a fine of $3,000 to be paid to the Motor Vehicle Commission when the underlying reason for the defendant's license suspension came from a failure to pay timely insurance surcharges.

This sentencing enhancement was imposed in addition to all other penalties and was collected by the MVC.  The penalty was automatically reduced to a judgment against the defendant until paid in full.

Defendants who were assessed this fine since January 16th of this year should make an application for sentence reconsideration pursuant to New Jersey Court Rule 7:9-4.

What does this mean?


Previously, if you were found guilty of or plead guilty to driving while suspended, and the suspension had occurred because you owed insurance surcharges, you were automatically assessed this extra $3,000 penalty.  That part of the law has been repealed, so any instances of this after January 16, 2010, should be altered to comport with the statute as it now reads.

It won't be automatically reversed, so you need to make an application to the court.  Be sure to contact your attorney for help.

Also, follow up with the Motor Vehicle Commission and the credit reporting bureaus to ensure that the judgment will not show up on your credit history.