Can a loan institution suspend CDL?

Discussion in 'Questions From New Drivers' started by AZGearJammer, Sep 25, 2010.

  1. AZGearJammer

    AZGearJammer Bobtail Member

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    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. krash13ss

    krash13ss 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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  3. johnday

    johnday Road Train Member

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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.:biggrin_25525:
     
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  4. chompi

    chompi Road Train Member

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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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  5. end of the road

    end of the road Heavy Load Member

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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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  6. dancnoone

    dancnoone <strong>"Village Idiot"</strong>

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    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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  7. ac120

    ac120 Heavy Load Member

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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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  8. Rerun8963

    Rerun8963 Road Train Member

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    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


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



    http://www.loansinsurancetips.com/2...ebt-in-u-s-history-and-how-we-can-fight-back/


    now this:

    from this website:

    http://web.extension.illinois.edu/mclean/factsheets/consed1049.html


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

    Emulsified 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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  10. AZGearJammer

    AZGearJammer 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.