Auditors say DMV should improve efforts to collect on bounced checks

CARSON CITY - The Nevada Department of Motor Vehicles and Public Safety needs to improve its methods for collecting on thousands of bounced checks, an audit says.

The audit found that it takes the agency 96 days on average to send out an initial collection letter. More than two-thirds of the 20,000 bad checks the state got last year were written to the DMV.

The report from the Division of Internal Audits also said agency staffers processed returned checks alphabetically rather than by dollar amount.

Auditors recommended that initial collection letters be sent within 30 days, that returned checks get priority based on their value, and that customers with bad checks be blocked from conducting further agency business.

The report said the DMV currently has no authority to stop someone who owes the department from registering another vehicle or doing other business.

The agency collected just over $461 million in taxes, licenses, registration and title fees in fiscal year 1999-2000.

DMV chief Richard Kirkland said in an audit response that many of the recommendations have already been implemented. That includes a focus on higher-value outstanding debts first.