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Have you ever been charged an excessive toll fee you didn’t understand?
Lately, some New Yorkers across the state are going into serious debt thanks to Metropolitan Transit Authority (MTA) fees that suddenly explode with late charges, even when notices are sent to old addresses.
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Brooklyn-based Ian Chichester told CBS News that he received a notice from the MTA for $3,234.06 in tolls, but the fees added on were ten times the original toll — somehow bringing the bill to $35,034.06 (1).
The MTA prides itself on offering toll payer advocates, who can help reduce fees, according to MTA Chairman and CEO Janno Lieber.
"What we’re saying is, come to the MTA and we’ll work something out with you," Lieber told CBS News. “We have a pretty successful record of working out payment plans with anybody who wants to settle up.”
But Chichester said that when he called them, they offered to bring his bill down to $10,106.95 — and gave him 30 days to accept the reduction. He called them back within the 30-day period to accept the offer, but now they claimed they could only offer a 50% reduction and proposed a payment plan of $570 a month for three years.
After CBS contacted the MTA, they agreed to honour the original offer, but couldn’t explain why the offer had changed in the first place.
Chichester will now have to pay $250 a month for three years, which he still considers "highway robbery."
Not the first time this happened
But Chichester isn’t the only New Yorker who’s gotten on the wrong side of the MTA. Staten Island dad Tyler Rivera told CBS News his fines totalled five times the cost of the original tolls, reaching $14,350 from $3,211 in tolls on one account, and $4,900 from what was originally $921.50 in toll fees on another (2).
The reason? His forwarding address had expired, and his bills bounced, creating a wave of extra fees.
After CBS called the MTA, they agreed to cut the fees in half, but affording this extra bill in order to drive where he needs to go won’t be easy.
"I live in Staten Island, I take my daughter to school in Brooklyn, I work all the way in Flatbush," Rivera said. "What am I supposed to do? I can’t drive my car."
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MTA says pay the toll and there will be no fees
Confusion around the fee system, who gets a discount and why the discount can suddenly change remains unclear.
"As part of government, we build things, people use these things, and they have to pay to use these things. And when they pay, there are no fees," MTA Police Chief Thomas Taffe told CBS.
The MTA website says that there is a $50 fee per toll after a 60-day period without payment, and the MTA confirmed it is a one-time fee (3).
Unfortunate financial emergencies like this can set anyone into crisis mode, but there is help.
If calling the MTA only to get confusing, exploding offers sounds stressful, Freedom Debt Relief can negotiate for you.
You can authorize them to act on your behalf and negotiate a lower payment with creditors like the MTA, taking the fear out of the process. Their skilled negotiators know exactly what to say to get you a payment plan you can afford.
Freedom Debt Relief’s program is not a loan and does not charge signup fees. You only pay them if they negotiate a settlement you find acceptable.
Take their free evaluation to find out how they can help you today.
Another way to ensure you don’t miss out on unexpected fees before they balloon? Keeping track of your budget. When you’re on top of your bills and payments, you’re less likely to miss a rogue charge that spins out of control.
But managing a budget doesn’t come naturally to everyone.
If budgeting feels overwhelming to you, apps like Rocket Money can help.
Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit and investments all in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs — potentially saving you hundreds annually.
For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.
While you’re sorting out your budget, it could also pay to take a look at your car insurance. That’s where services like OfficialCarInsurance.com can come in, which aggregate rates from top providers in your area.
Insurers include household names such as Progressive, GEICO, State Farm and Allstate. Depending on factors like your age and driving record, you could find rates as low as $29 per month.
And while it’s never pleasant to receive a $35K bill for late fees, this situation highlights the importance of an emergency fund. Having extra cash on hand for emergencies can make a situation like this much less stressful, since you know you can pay the bill immediately.
A high-yield account, such as a Wealthfront Cash account can help grow your emergency fund, since it offers competitive interest rates while leaving your cash easy to access should the toll fees suddenly add up.
A Wealthfront Cash Account can provide a base variable APY of 3.50%, but new clients can get a 0.65% boost over their first three months for a total APY of 4.15% provided by program banks on your uninvested cash. That’s over nine times the national deposit savings rate, according to the FDIC’s October report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
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This article originally appeared on Moneywise.com under the title: New Yorkers are driving into debt from MTA tolls, and 1 resident is crying ‘highway robbery’ after a $35K charge
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