Can a debt collection agency take your license away if you can’t pay them?

UPDATED: Feb 22, 2012

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Can a debt collection agency take your license away if you can’t pay them?

I have a collection agency hired by an insurance company that refuses to take less than a certain amount per month in payments. I did not have insurance on my vehicle and was involved in an accident for which I was at fault. DMV fees have been paid and license was suspended for 1 year for no insurance. I have offered them what I can and they have refused it saying its not enough and that if I didn’t pay then they would have my license taken away for 1o years. Is this legally possible for them to do so?

Asked on February 22, 2012 under Bankruptcy Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

For the third party debt collection company to threaten you with the loss of your license is improper and most likely could be considered an unfair debt collection practice under state and federal law. No, the third party debt collection company cannot have your driver's license taken away for any time period concerning the debt that you are writing about.

I suggest that you might wish to consult with an attorney that practices in the area of consumer law about the issues that you are having with this third party debt collection company.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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