Do Unpaid Tolls Go to Collections?
Explore what happens when tolls go unpaid, including their potential referral to collections and how to address these situations.
Toll roads are a key part of U.S. transportation infrastructure, funding maintenance and easing congestion. While millions use them daily, unpaid tolls can escalate from simple invoices to serious financial and legal consequences. Understanding how these are handled, including potential referral to collection agencies, is important for vehicle owners.
How Unpaid Tolls and Penalties Accrue
Toll collection primarily relies on electronic systems like transponders or “pay-by-plate” methods. Transponders, such as E-ZPass, automatically deduct tolls from a prepaid account. If a vehicle lacks a transponder or has insufficient funds, cameras capture the license plate, and the toll authority mails an invoice to the registered owner.
When an initial toll remains unpaid, the toll authority issues subsequent notices and applies additional charges. These often include late fees and administrative penalties, which can quickly increase the original amount owed. Continued non-payment after these reminders can lead to further escalation, with penalties sometimes reaching significant amounts per toll or invoice.
Toll authorities provide a grace period, typically 14 to 30 days, for drivers to pay the initial invoice before additional fees are assessed. If payment is not received within this timeframe, the debt grows as more administrative fees are added with each subsequent notice. This accumulation of charges occurs directly through the toll authority’s internal processes before any third-party collection efforts commence.
The Collection Agency Process
When a toll debt remains unresolved after multiple notices and significant penalties, toll authorities escalate the matter by referring the unpaid balance to a third-party collection agency. This referral often occurs after 60 to 90 days of non-payment or once a certain threshold is met. The collection agency then assumes responsibility for recovering the debt, initiating contact through mail and phone calls to the vehicle’s registered owner.
An unpaid toll debt sent to collections can significantly impact an individual’s credit report. While the original toll itself does not appear on credit reports, a collection account can negatively affect a credit score. This derogatory mark can remain on a credit report for up to seven years, potentially hindering access to future credit or loans.
Beyond credit implications, unpaid tolls in collections can lead to restrictions on vehicle ownership and driving privileges. Many jurisdictions implement vehicle registration holds or renewal blocks for drivers with outstanding toll debts. This means a vehicle owner may be unable to renew their registration until the full amount owed, including tolls, fees, and collection charges, is settled. In severe cases, civil legal action may be pursued, potentially resulting in court judgments, additional fines, or even misdemeanor charges.
Addressing and Preventing Unpaid Toll Issues
To address unpaid toll issues, individuals should check for outstanding balances. Many toll authorities offer online portals to check for and pay any missed tolls. Act promptly upon receiving any notice, as paying within an initial grace period, often 14 to 30 days, helps avoid escalating fees. Payment methods typically include online portals, phone payments, or mailing a check or money order.
If a toll charge is erroneous, disputing it with the toll authority is an option. This usually involves contacting customer service, providing relevant details, and sometimes submitting documentation. Clear communication can resolve discrepancies before the matter escalates to collections. Some authorities may offer a one-time waiver of late fees and penalties if all original tolls are paid.
Preventing unpaid toll incidents requires proactive management of toll accounts and vehicle information. Maintaining an active electronic toll transponder account with an adequate balance is the most effective way to avoid missed tolls and often provides discounted rates. Regularly updating payment methods and vehicle information, including license plate changes or new vehicles, with the toll authority helps ensure accurate billing. Understanding specific tolling rules, especially for rental cars or out-of-state travel, is beneficial to avoid unexpected charges.