The Land Transportation Office (LTO) disclosed on Monday that it has issued a total of 3,940 show cause orders (SCOs) to motor vehicle dealers nationwide for failing to release license plates and Official Receipt/Certificate of Registration (OR/CR) within the prescribed 11-day period.

LTO chief Assistant Secretary Atty. Vigor D. Mendoza II said the issuance of the SCOs is part of the agency’s efforts to prevent the stockpiling of license plates in various dealerships across the country.

He added that most of those issued with SCOs have already submitted comments and explanations, which are now under investigation.

“This should serve as a lesson to all car dealers that their obligation does not end with selling vehicles and motorcycles. They must provide the necessary services to their clients, especially license plates and OR/CR, as these are crucial in accordance with the laws and regulations of our country,” Mendoza said.

The penalty for motor vehicle dealers’ failure to release license plates and LTO documents can reach up to P1 million, depending on the severity of the offense.

Mendoza previously warned motor vehicle dealers to release license plates and OR/CR on time as the LTO aims to implement the “No Plate, No Travel” policy after clearing the backlog of license plates for four-wheel vehicles.

The LTO is now focusing on the backlog for motorcycles, aiming to address it by June next year as mandated by President Ferdinand Marcos Jr.

The warning was also prompted by an investigation that revealed license plates remaining in the custody of motor vehicle dealers. In a recent dialogue, some vehicle dealers cited their clients’ failure to claim their licenses despite repeated messages, leading Mendoza to order all local LTO officials to assist in the distribution.

Several LTO offices have initiated programs, including door-to-door delivery of license plates, to address the issue.

Mendoza urged owners of newly-bought motor vehicles to immediately report any errant agents or dealerships that fail to release their license plates and OR/CR on time and complaints can be sent to the LTO’s social media accounts.

Meantime, the LTO has extended the deadline for the ban against the use of improvised and temporary plates for motor vehicles to 31 December 2024.