they already have free access to the information through the DMV.
I worked for a repo company briefly, their private systems had every license plate in there. I would go around all night long scanning plates with ir cameras looking for a vehicle up for repo. I could pull up your name, address, place of employment, and if applicable your loan amount, how much you've paid, how much you owe, your co-signers name and address, and their places of employment, etc. I could do it to any vehicle, even ones not up for repo, in case they were trying to swap plates....which was common.
it's pretty much the whole point of license plates in the first place....to ID you and the cars VIN.