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  1. #1
    Bobtail Member
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    Can a loan institution suspend CDL?

    I am currently in school for my CDL. I had to take a loan out to pay for it. They, the lending institution, had me sign a paper saying that if I did not repay the loan that they would suspend my CDL.



    Now, I am not implying in any way that I do not intend on paying my debt. My question is if this is actually legal and possible. It has always been my understanding that the right to drive any motor vehicle is granted by the state and under the states control. I do not know if it makes a difference what state I live in, but I live in Arizona.

    Thank you for your help in understanding this.

  2. #2
    Light Load Member
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    I have never heard of that before. It sounds like creative incentive to me.

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  4. #3
    Road Train Member johnday's Avatar
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    In my state it's a privilege, not a right. But yeah, sounds like your lender is quite full of it. I think I'd look into a little more reputable/truthful lender. That is, unless the state is funding it, then all bets are off. I don't know about that.

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  6. #4
    Road Train Member chompi's Avatar
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    They can damage your credit, but I do not see how they can revoke your CDL. They have nothing to do with the government and that is who is in charge and issues you your CDL. That's like saying they can write you a ticket. They might be able to withhold your school records in which some companies ask for when you apply for the job. This is usually only for drivers with less than a year of experience. These CDL mills are all private companies and don't have authority over jack! A lot of them actually have to have a certified person from the DMV be on site while everyone is taking there final driving test. I wouldn't sweat it, most of the newbie companies pay the loan back for you anyway. As long as you are driving for them they pay your payment.

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  8. #5
    Heavy Load Member end of the road's Avatar
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    CDL is issued by the government agency in your state. Unless that bank is also the issuer of the CDL they are full of crap.

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  10. #6
    "Village Idiot" dancnoone's Avatar
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    Quote Originally Posted by AZGearJammer View Post
    I am currently in school for my CDL. I had to take a loan out to pay for it. They, the lending institution, had me sign a paper saying that if I did not repay the loan that they would suspend my CDL. snipped.....
    Anythings possible I guess, although not likely. Especially when the loan is guaranteed by the Government.

    The likelihood of a private lender doing this....ZERO.

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  12. #7
    Heavy Load Member ac120's Avatar
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    AZGearJammer:

    State--not lender--issues license. Only state can revoke or suspend same. What authority could your lender possible have here? I think in some states a driver's license can be revoked or suspended if he/she owes child support, but a debt to a money lender? Nah. Can you post the paper you signed?

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  14. #8
    Road Train Member Rerun8963's Avatar
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    Quote Originally Posted by AZGearJammer View Post
    I am currently in school for my CDL. I had to take a loan out to pay for it. They, the lending institution, had me sign a paper saying that if I did not repay the loan that they would suspend my CDL.

    Now, I am not implying in any way that I do not intend on paying my debt. My question is if this is actually legal and possible. It has always been my understanding that the right to drive any motor vehicle is granted by the state and under the states control. I do not know if it makes a difference what state I live in, but I live in Arizona.

    Thank you for your help in understanding this.
    i found this to be an interesting question, so i had to do some searching. thus far, i have come up with a way a student loan (not being paid back) where a "professional license" can be yanked away..........!!!!!!!

    what we all need to remember, is that if one owes back child support, that gets to the DMV and your license can be suspended or revoked. if one owes back taxes, one's license can be suspended or revoked. so i'd venture to say, NOT the bank can take away a CDL, but they can notify the state DMV and have it suspended, IF that particular state has such provisions in the DMV code for licenses......we can never know ALL the states and thier rules governing license suspensions or revocations.

    here is some of what i found

    "goodstuff Says:
    February 28th, 2010 at 9:42 pm If you take out a student loan in the US today, you are walking the edge of a volcano.
    If you slip (and it doesnít take much to slip), you could end up little more than an indentured servant, owing 2x or 4x or more what you originally borrowed. Your wages, tax refunds, social security payments, even disability payments will be garnished from now until the end of time. Chances are slim youíll ever be able to pay it off, because the allowable fees and penalties on a student loan are impossibly huge. At the whim of the student loan companies, you can have your professional license yanked or be forced out of public employment. Did I mention debt collectors donít need to follow fair collection practices because itís a student loan? Oh and forget about discharging it through bankruptcy. . . itís a student loan. . . not allowed"

    here is where i found the above: (scroll down to # 5)



    http://www.loansinsurancetips.com/20...an-fight-back/


    now this:

    "Do you owe child support, back taxes, or student loans? Failing to pay child support can have serious consequences. You may be held in contempt of court, lose your driver's license, or be sent to jail. Liens may be placed on your property, and you may not receive your tax refund. If your income has dropped sharply, you may be able to get the court order modified. Call your attorney for more information, said Prasse."
    from this website:

    http://web.extension.illinois.edu/mc...onsed1049.html


    so in the end.....there is ALWAYS that possibility...........

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  16. #9
    Road Train Member
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    A driver's license is a privelege extended by the state to you (in all 50 states..or 57 if you're a democrat).
    It can be revoked only by the state that issued it, or by a judge from that state.
    Any professional license (including a CDL) can be revoked or suspended by the DMV if requested by the DA or Attorney General's office if Child support is not paid.
    I think your lender is blowing smoke to keep you in line.
    Just to feel assured, simply ask the DMV.

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  18. #10
    Bobtail Member
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    Thank you for all of your replies. I thought is was BS as well. I do not owe any back child support, as a matter of fact I pay that before feeding myself. The loan, that the school got for me, was not a government loan. It is through a private institution in another state.
    I guess I was shocked that they would try to scare people into paying their loan by threatening to take their livelihood away, but then again this is America.
    When I receive all of my paperwork, including a copy of that paper, I will try to post it.

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