New Bill Cracks Down on Predatory DMV Scams

SACRAMENTO, Calif. — Assemblymember Matt Haney (D-San Francisco) has introduced new legislation with the Consumer Federation of California to stop online businesses from gouging Californians with excessive fees for DMV services.

Consumer complaints have mounted for years over third-party websites charging excessive fees for DMV services. An ABC 7 News investigation recently highlighted one case, underscoring how deceptive practices are affecting families and seniors across California.

Assembly Bill 1190 (AB 1190) would place a cap on the ‘convenience fees’ charged by third-party websites that process DMV transactions like registration renewals and title transfers. The measure aims to protect consumers from deceptive sites that mimic official DMV platforms while charging wildly inflated prices.

“Families and seniors are getting tricked into paying hundreds of dollars more than they should,” said Haney. “This bill ends these scams and makes sure Californians only pay a reasonable, fair fee for any DMV service.”

Each year, millions of Californians are tricked into using third-party websites for DMV services. Many of these sites closely resemble the DMV’s official site but quietly tack on hidden fees that can double or even triple standard costs.

The impact on consumers is real. In one case, an elderly customer seeking to renew their vehicle registration — a service that should have cost $221 — was charged $303 by a deceptive website. In another case, a consumer renewing two cars paid $956 after being hit with more than $150 in hidden fees — and only one registration was completed. Both consumers were threatened with legal action when they challenged the charges.

“These are not isolated mistakes. These predatory websites rely on confusing seniors, families, and low-income Californians,” Haney said.

Currently, California caps DMV service fees charged by authorized business partners such as car dealerships. However, no such protections apply to third-party online providers, creating a loophole that AB 1190 seeks to close.

Under the proposed legislation, third-party websites could charge only a small, regulated convenience fee above DMV rates — putting an end to unchecked price gouging.

The DMV is a vital service for every Californian, and it should be accessible without fear of manipulation,” said Haney. “We’re drawing a line in the sand. If you’re going to offer a service, you’re going to do it honestly.”

Haney said AB 1190 is a critical step in restoring trust and fairness for Californians trying to access essential government services online. “

The DMV is something every Californian relies on,” said Haney. “People deserve a system they can trust — not one that scams them when they’re just trying to do the right thing.”