Angry California drivers say DMV-like ‘NeedTags’ website tricked them into paying extra fees

SAN JOSE, Calif. — Dozens of California drivers are complaining that they were tricked into clicking on a website they thought was the DMV, when it was actually a private company selling DMV services.

You may be surprised to learn that the DMV authorizes companies to collect your DMV payments and they can add as much as they want as extra fees.

So why allow companies to profit from drivers paying DMV bills?

7 On Your Side has seen hundreds of complaints about one company in particular: NeedTags.com.

VIDEO: DMV-like ‘NeedTags’ threatens elderly customer with legal action over credit card dispute

Consumers say the website looks and works just like the DMV website, but with surprise fees.

A consumer advocate says the added fees could violate the state’s ban on junk fees, and a South Bay consumer is trying to raise awareness.

“It has all the look of the DMV,” said Allyn Peterson of San Jose.

Peterson went to the DMV website to renew his car registration.

Or so he thought.

“Like, what is this?” he said.

DMV registration fee was $231. So why was he charged $303?

“We feel like we were ripped off, if you will,” Peterson said.

MORE: DMV adds late fees, fines after drivers register their vehicles with e-check

Turns out he accidentally clicked on a third-party website: NeedTags.com, which offers DMV services, but charges extra at checkout.

Realizing his mistake, he called to cancel the order. He was shocked by the answer.

“‘If you object to this transaction, we will take legal action immediately,’ which is not something I would expect from a reputable company,” he said.

So what upset him more? Peterson learned that NeedTags was a DMV partner, not a fraudulent company. The DMV authorizes NeedTags and other merchants to sell DMV services and charge them as much as they want with extra fees.

“They can charge whatever they want, they’re a private company. My problem is, why does our government allow them? Why is it officially sanctioned by the government?” Peterson asked. “I don’t understand why the government would do this to its own citizens.”

Consumer advocate Robert Herrell said the state should require companies like NeedTags to post prominent disclaimers.

“It needs to be clearer and much more noticeable,” Herrell said. “‘You’re not on the DMV website, click here if you want the DMV…’ And you’ll pay a lot more than if you went directly to the DMV website.”

Multiple Californians complained online and to 7 On Your Side, saying NeedTags misled them into believing it was the DMV.

MORE: Paper roadblocks delay woman’s DMV vehicle registration renewal by six years

First, NeedTags pays Google to appear at the top of DMV search results.

Also on the NeedTags website it says “California DMV registration renewal” in all caps.

Consumers do not see the extra charges added to their bill until after payment.

“The Department of Motor Vehicles offers the same functionality for free. Why have NeedTags?” Peterson asked.

NeedTags owner Eddy Asmerian couldn’t be reached, but he told us the company is “committed to transparency” and that fees are displayed on the website before payment.

We asked DMV director Steve Gordon about the increasing complaints about the DMV partner.

Gordon did not respond directly. But in emails to your side 7, a DMV spokesperson said the NeedTags website states it is not the DMV.

But where?

MORE: Driver stuck with fees after DMV sends him new sticker, then tells him they can’t renew registration

“There’s beautiful print there, but it’s written in a much smaller font size than anything else on that page… the page is designed to draw your attention to the other elements, the license plate images… Robert Herrell writes, what we call “clear and eye-catching,” imaginative “It’s a test of what you can do,” he said.

As for hidden fees, the DMV said NeedTags lists them.

But even if they knew about the fees, consumers would have to go to the bottom of the website and click a button.

That means they’ll pay an extra $49 per vehicle, or $100 for commercial plates, and a number of smaller fees on top of the DMV fee.

“I think this is a violation of California’s previously implemented anti-trickle pricing law,” Herrell said.

We asked the DMV: Does NeedTags violate the state’s own ban on hidden fees?

The DMV told him to contact the Department of Justice.

“The optics are terrible here with the DMV saying ‘it’s not our problem,'” Herrell said. “Since you brought this issue to our attention, the California Consumer Federation will follow up on the matter. We will also contact the Attorney General’s Office.”

The DMV tells 7 On Your Side these partnerships began when the DMV had long lines and companies helped lighten the load. But now the DMV website can process transactions quickly, without an in-person visit, and it’s free. Despite its partnership, the DMV urges drivers not to use NeedTags but to go directly to the DMV website.

Check out more stories and videos 7 With you.

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