Assembly member Watts discusses DMV payment plan improvements to avoid debt traps

In a recent Senate Committee on Finance meeting, Assembly Member Howard Watts emphasized the importance of consumer protection in proposed legislation aimed at DMV payment plans. He highlighted concerns about potential debt traps, urging the committee to incorporate robust data collection measures to prevent high late fees and defaults. "We want to ensure that these installments do not roll over into high-interest instruments," Watts stated, advocating for adjustments based on data-driven insights.

Watts also discussed the idea of shorter registration periods, which would require more frequent DMV transactions. However, he noted that this proposal faced resistance due to concerns over increased processing fees. "There was some hesitancy around having people come in four times as often," he explained.

Senator Veil contributed to the discussion by sharing a successful model from the Secretary of State's office, which has implemented a payment plan for business license fees. This approach allows individuals to manage late fees more effectively and could serve as a valuable reference for the DMV's payment plan structure.

The meeting concluded with a shift in focus to Assembly Bill 284, led by Assembly Member Tracy Brown May, who lightened the mood with a humorous inquiry about the dress code for legislators. As the committee moves forward, the discussions on consumer protection and payment plans remain pivotal in shaping future DMV policies.