Texas
Related: About this forumAuto Title Companies Sue Texas DMV Over New Fee Limit
Eight auto title service companies are suing Texas Department of Motor Vehicles, saying the departments service fee limits could put them out of business.
In June, the DMV Board approved changes that prevent private title service companies from charging a service fee of more than $10 for registrations and $20 for title services. The move came three years after the Texas Legislature adopted rules allowing the Texas DMV to more closely regulate private auto title companies and determine how much they should be able to charge for their services. Those private companies charge an extra fee for services that are also offered at the local county office.
Theyre cutting us off at the knees, said Sharon Fry of Fry Auto Title Services, who is among those suing the state. Theyre reducing our revenue, and theyre also saying any other service that we provide were not allowed to charge one penny more ... We are being forced out of business.
Fry and her husband have owned and operated their Austin business since 1998. They charge a $10 service fee for registration renewals and up to $40 for title transfers, but that will change when the restrictions go into effect Jan. 1.
Read more: https://www.texastribune.org/2016/08/26/private-auto-companies-sue-dmv/
dofus
(2,413 posts)and why are they even needed?
In all of the many years I've owned cars, I've simply gotten the title directly from the state -- and I've lived in several different states. I cannot begin to imagine why a title service company is needed. This, perhaps I'm sorry to say, is reminding me of the claims that we need to demand ID from voters because of the nearly nonexistent possibility of voter fraud.
What is wrong with people that they don't understand they don't need a middleman for such things?
TexasTowelie
(112,248 posts)hours when the courthouse is open. The other possibility is that the owner isn't fluent in English so they can't handle the business at courthouses if there are only people that speak English.
dofus
(2,413 posts)But aren't the DMVs also open at off hours? As in early in the morning?
I'm going to confess to considerable ignorance here, since all of my life I've either worked shift work that meant I'd be free to go to things like the DMV when they were open, or was a stay-at-home mom which gave me a lot of flexibility, or, in more recent years, have been retired.
To my way of thinking the obvious solution is to make the DMV open hours that accommodate people who don't work normal hours, although come to think of it, those who work a job from 8am to 5pm are the most constrained. But my original point, that the DMVs need to be open longer hours and on Saturdays, still stands.
Among the reasons I really liked shift work was that it gave me the time off to do such things.
Everyone should have that opportunity.
TexasTowelie
(112,248 posts)As far as auto titles are concerned they are handled by the county tax assessor office rather than the DMV. The counties would have to hire personnel to meet the additional demand if more people use the county offices or if they had to expand their hours of operation. Not only do they have to allocate a budget for the wages of the new personnel, but also for their fringe benefits (e.g. vacation, health insurance and pensions) so it saves the counties money in the long run.
The article mention five specific counties that have deputized auto title service companies and all of them have significant Hispanic population which somewhat reinforces my point about the language barriers.
There is the issue that some people might not want to appear at a government office because they might have outstanding warrants so they turn to these private businesses instead.
Finally, it is interesting to note that the attorney filing suit for the auto title service companies is the former county judge for Travis County (including Austin) who is a Democrat.
TheDebbieDee
(11,119 posts)to a private contractor thereby leaving all the state DMV employees obsolete. These privately-owned renewal/registration/title set their own hours and these jobs are now worked by employees who I'm sure earn only a fraction of what the state employees earned...