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LTO refused to process MC registration because of previous violation of driver

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Arresto Menor
Good Afternoon Atty,

I just want to ask,,,the LTO refused to accept and process the registration of motorcycle because it appeared that the previous owner have trafic violations (riding mc w/out helmet and under influence of alcohol). The LTO demanded the settlement of P1,500. Is it lawful??? The unit was repossessed by our company from that previous user.
Hope you can help.

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