PROVIDENCE, R.I. (WPRI) — Call 12 For Action did some digging after one of our viewers reported receiving a letter from the Rhode Island Department of Motor Vehicles – but the return address was for a location in South Carolina.
We found out the letter was part of the state’s insurance verification program.
According to the DMV, the state hired a South Carolina company to track down people who are driving without insurance. We’ve learned that in less than a year, thousands of drivers have had their registrations revoked – and the state has collected about $500,000 in registration reinstallment fees.
According to Paul Grimaldi, a spokesperson for the DMV, tracking down vehicle owners who not have the necessary insurance is time-consuming.
“It would require the decision to pull clerical and technical staff from higher-priority tasks,” he explained.
The state hired a vendor, MV Solutions, based in Blythewood, South Carolina to do the work.
MV Solutions started sending notices in June 2015. To date, they’ve sent 43,700 first notices and 28,000 second notices.
So far, 14,300 registrations have been revoked. Of those, 2,433 people have paid to reinstate their registrations.
Because of those reinstatements, the state has collected $608,250.
According to a spokesperson for the DMV, MV Solutions gets $50 from each reinstatement fee. To date, that adds up to $121,650.
“MV Solutions provides that service far more cheaply than the DMV could on its own,” Grimaldi said.
Call 12 For Action has learned the state’s contract with MV Solutions goes through 2017.