DOTr Ends License Confiscation to Combat Traffic Corruption, Sets New Payment Rules
In a significant move to address long-standing issues of corruption and abuse in traffic enforcement, the Department of Transportation (DOTr) has issued a directive banning the confiscation of driver's licenses during traffic stops. This policy change, formalized through Transportation Memorandum Circular No. 2026-001 dated January 9, 2026, and signed by Transportation Secretary Giovanni Lopez, aims to provide motorists with clearer and fairer procedures while reducing opportunities for extortion by traffic enforcers.
New Guidelines from LTO Standardize Violation Settlements
Following the DOTr mandate, the Land Transportation Office (LTO) has released implementing guidelines under Memorandum Circular No. MVL-2026-4846, signed by Assistant Secretary Markus V. Lacanilao, head of the LTO. These guidelines establish a standardized 15-working-day settlement period for paying fines related to traffic violations, effectively eliminating the previous practice of immediate license confiscation. The circular applies to all LTO regional directors, assistant regional directors, district office heads, heads of the Traffic Adjudication Service (TAS), and other authorized personnel, ensuring strict enforcement nationwide.
Key Provisions and Impact on Motorists
The most critical provision of the new circular is the prohibition of license confiscation at the time of apprehension. Under the old rules, as outlined in the Temporary Operator's Permit (TOP), licenses were confiscated, though drivers could still operate their vehicles for up to 72 hours after the violation and had 15 calendar days to settle fines. The updated policy specifies that the 15-day payment period now refers to working days only, excluding Saturdays, Sundays, declared non-working holidays, and government suspension days. This adjustment is designed to give motorists a reasonable and unambiguous timeframe to pay fines without incurring penalties.
If fines are paid within this designated period, it will be recognized as full compliance with Joint Administrative Order (JAO) No. 2014-01, and no suspension of the driver's license will occur. Instead of confiscation, violators will be flagged in the LTO system under an alert status. However, failure to pay within the allotted time will result in an automatic 30-day suspension and revocation of the license, in addition to the original fine and any penalties, as per JAO 2014-01.
Addressing Corruption and Public Concerns
This reform comes amid growing public frustration over high traffic fines and alleged corruption among enforcers, where license confiscation has often been cited as a tool for extortion. Critics have long argued that such practices disproportionately affect honest drivers, with some enforcers exploiting the system for personal gain. The DOTr's initiative seeks to mitigate these issues by removing the physical seizure of licenses, thereby reducing direct confrontations and potential bribery scenarios during traffic stops.
By implementing these changes, the government aims to foster a more transparent and accountable traffic enforcement system, ultimately protecting motorists' rights while maintaining road safety standards. The move is expected to streamline violation settlements and enhance public trust in transportation authorities.
