Debt collection for expired vehicle license?

Page 1 / 3
henderson_guy, Sep 6, 11:10am
Don't really know how to feel about this. One of my vehicles ran outta rego a couple months back. Since the WOF had also expired, the rego could not be renewed. Not a problem, it was left to sit until I had time to take it in for a WOF.
Last week I received a reminder notice stating that the unpaid licensing could be passed on to a debt collection agency. Can they actually do this? The vehicle is not being used at the moment, and when another license period is purchased, it will of course start from the date where the last period ended. Plus of course, it is subject to fines if caught being driven. So why threaten debt collection?

snoopy221, Sep 6, 11:14am
Happens CVL (Continuous Vehicle Licensing)
shoulda put rego on hold. costs nothing.

However at this point it will be backdated so simply go here
https://transact.nzta.govt.nz/transactions/licensingexemption/entry
and pay what is owing and then put it on hold

henderson_guy, Sep 6, 11:20am
I don't want to put it on hold, it still gets regularly used, and will be again by the weekend. I don't have a problem with paying the licensing, but I don't understand why it should be passed on to a debt collection agency if not paid before expiry of the last period.

snoopy221, Sep 6, 11:23am
Well if ya donnae take advice as given and donnae understand the system then simply do NOTHING for 12 months and it WILL be automatically deregistered and will have to be revinned and recomplied.

That be how it works.

Big Money Grab.

henderson_guy, Sep 6, 11:28am
Again. Not what this is about. It's had an expired licence for 2 months - not 12.

snoopy221, Sep 6, 11:39am
Yep and they have updated the system as the letters re finance used be sent out close to the 12 month period and the system works in 3 month increments.
So at this point it should cost you NOTHING to put it on hold AND if you warrant it and register it one day after the 3 month period then the new registration will start from the date you register it saving you 3 months of CVL as it has been exempted.

Oh and thanks for informing us ALL that if ya dunnae pop on hold they debt collect after 3 months

Houers.

martin11, Sep 6, 11:45am
You will have to warrent it and pay for the licence from the date of expiry to be able to use it legally on the road .

henderson_guy, Sep 6, 11:58am
Really? No kidding

kazbanz, Sep 6, 12:01pm
Short version--you either put it on hold or rego it. If you do neither they can/do make you pay anyway.

snoopy221, Sep 6, 12:03pm
And the 35 demerits and the fine

The fine for an expired registration or WOF is $200.

https://www.nzta.govt.nz/driver-licences/driving-offences-and-penalties/demerit-points/#vehicle

Operating unregistered motor vehicle by driving or using it on road in contravention of section 242(1) of the Land Transport Act 1998 20 demerit points
Operating unlicensed motor vehicle by driving or using it on road in contravention of section 242(1) of the Land Transport Act 1998 15 demerit points

saxman99, Sep 6, 12:09pm
They assume you are using it on the road whether you actually are or not.

gusthe1, Sep 6, 12:11pm
They are just stopping little debts becoming big debts

martin11, Sep 6, 12:13pm
Also if it was insured probably claim declined if the vehicle is involved in and accident and the driver is at fault ,

daves, Sep 6, 12:15pm
Minimum period on hold is 3 months though.

sw20, Sep 6, 12:45pm
x1
Minimum hold period is three months if you don't want it backdated.

ianab, Sep 6, 12:55pm
Yes, but if you change your mind you can re-register it, you just have to pay from the original expiry date, and so don't save any money. Once you have been off the road for 3 months, then you pay from the date you re-register, and so save some $$.

desmodave, Sep 6, 12:57pm
Have you ever looked into the Insurance Ombudsman . Probably you say , i say your guessing . As long as the car has not faults why would they not accept a claim .

rusty_james, Sep 6, 1:47pm
cause the system is an arse plan an simple

henderson_guy, Sep 6, 2:39pm
Guys, I think some of you misunderstand. I am very well aware of how vehicle licensing works, thank you. My question is, why threaten to involve debt collectors?
As some of you have quite rightly pointed out, (and so did I, in my first post) licensing is backpaid from the end of the last period, and is paid in advance anyway, so there's no loss there. PLUS any driver caught operating an unlicensed vehicle on the road is subject to fines, so again, no loss there.
I just checked the expiry, it was 11 June, so not even 2 months. During which time it could not be licensed anyway, due to no current WOF. Just seems a little draconian to me.
Never mind, it will be licensed by the end of the week.

henderson_guy, Sep 6, 2:41pm
I'd be pretty pissed if it was involved in an accident and my insurance didn't cover it, considering its been parked up on my property since the WOF lapsed.

snoopy221, Sep 6, 2:45pm
Valid question
And as i have stated prior.
It appears the system has been updated and being charged in 3 monthly increments the letter re debt collection has been updated to the FIRST 3 monthly installment wherein it used to be at the LAST 3 monthly installment

post#6

Yep and they have updated the system as the letters re finance used be sent out close to the 12 month period and the system works in 3 month increments.
So at this point it should cost you NOTHING to put it on hold AND if you warrant it and register it one day after the 3 month period then the new registration will start from the date you register it saving you 3 months of CVL as it has been exempted.

Oh and thanks for informing us ALL that if ya dunnae pop on hold they debt collect after 3 months

Houers.

Edited by snoopy221 at 4:40 pm, Thu 6 Sep

Quote
snoopy221 (435 435 positive feedback) 4:39 pm, Thu 6 Sep #6

rgflav, Sep 6, 2:53pm
Had the same letter before, tried online to put on hold and to my surprise it worked, was 5 weeks after the current hold had expired.

snoopy221, Sep 6, 2:55pm
Agreed have experienced same as do a few on line for non computer savvy peeps
[costs money to do at counter and free on line]

pico42, Sep 6, 4:31pm
Insurance companies do like to do that. But it is illegal to do so just because the car isn’t licensed or WoFed. Must be something that contributed to the accident.
Refer to s11 of the Insurance Law Reform Act 1977.

owen106, Sep 6, 5:05pm
You're right legally of course. But the other answer is that if the unlawful vehicle wasn't on the road it wouldn't have been in an accident!