Trial will untangle whether BMV owes more money

Almost three years after the Bureau of Motor Vehicles settled a class-action lawsuit for $30 million, the agency could be on the hook for more money as it goes to trial in a second lawsuit regarding inflated driving fees for Indiana residents.

The class-action lawsuit alleges that the BMV overcharged Hoosiers in its fees for a slew of licenses and titles offered by the agency, such as motor vehicle registrations, semitrailer registrations and personalized license plates. The previous class-action lawsuit solely dealt with fees associated with driver's licenses.

Marion Superior Court Judge John Hanley will hear the case Wednesday in what is expected to be a one-day bench trial.

The biggest contention of the lawsuit is how much money the BMV owes to Indiana drivers. Attorneys for the plaintiffs are arguing that the BMV overcharged residents by tens of millions of dollars.

The BMV, though, has countered that the amount is not that high, and that the agency actually undercharged customers in some cases.

The trial marks another step in the yearslong saga of problems for the BMV regarding overcharging drivers.

Did patronage lead to BMV overcharges?

An outside audit released in 2015 indicated that the agency overcharged customers by $60 million. It also highlighted problems that led to the overcharging, including a lack of oversight and accountability of employees, as well as problems with the computer system.

An IndyStar investigation published last year indicated that BMV officials knew about the overcharging but ignored the problem rather than face budget losses.

Last month, the bureau announced that it refunded $29 million in overcharged fees in the form of credits to customers' BMV accounts to be applied to their next transaction. This was in addition to the refunds that stemmed from the class-action settlement.

The lawsuit, though, argues that refunds in the form of BMV credits are insufficient because they discount people who no longer live in the state or own a car. The suit also asks the BMV to comply with records requests that it says would reveal the true amount the BMV owes in refunds.

The trial is scheduled to begin at 9 a.m.

IndyStar reporters Tony Cook and Tim Evans contributed to this story.

Call IndyStar reporter Madeline Buckley at (317) 444-6083. Follow her on Twitter: @Mabuckley88.