INDIANAPOLIS -- The governor's office said it has reversed the Bureau of Motor Vehicles' decision to penalize people who missed July 31 deadlines to renew vehicle registrations, acknowledging that recent BMV computer problems made transactions difficult.

The BMV was charging late fees this week, and Commissioner Joel Silverman said Wednesday that he would not waive the penalties.

---

Video: Governor's Office Overrules BMV On Late Fees

---

But on Thursday, the governor's office decided the collection of late fees for those who missed July 31 deadlines would stop, and those who did pay the penalty this week would be refunded, said Mark Massa, general counsel to Gov. Mitch Daniels.

People can now pay for their July 31 renewals through the end of August without penalty, Massa said. He said the state still is trying to determine how late-fee refunds will be handled.

The BMV was plagued with technical problems after it upgraded its computer systems July 5. People had difficulty making transactions for days at license branches, and online service and self-service terminals also were down for several days.

On Wednesday, Silverman told 6News that customers with July 31 registration renewal deadlines had plenty of time to make their transactions, and that he therefore wouldn't waive late fees. The bureau said in the first half of July that it would offer extensions to people who had July 15 deadlines.