The ATA defines predatory towing as “any incident in which a towing and recovery company egregiously overcharges, illegally seizes assets, damages assets by use of improper equipment, or illegitimately withholds release of a truck, trailer, and/or cargo.”
The ATA found that 30% of invoices charged excessive rates or included bogus additional charges.
A VA Carrier paid $202,000 for a single-vehicle crash recovery.
16-mile tow that warranted a $6,000 bill.
A driver in Memphis refused to leave her truck for 33 hours to prevent the Notorious "A1's Towing and Hauling" of Memphis from towing the vehicle even though they paid for parking and had a receipt. The carrier even offered to pay A1 $7500 to drop the truck and they refused saying it was too low.
A1 has had their license revoked for a period but the practice of predatory towing.
Motor carriers often have little say in selecting their tow provider. They cannot compare rates, investigate the crash site, or approve the equipment and techniques used in the recovery process. This lack of control over the situation has given rise to predatory towing.
Over a third of respondents indicated that they never had the opportunity to select a towing company after an accident occurred.
Most police-initiated tows rely on a rotation list of towing companies. In some alarming cases, towing and recovery companies are taking matters into their own hands, lurking near low-clearance underpasses and showing up unsolicited at accident scenes.
Unsuspecting drivers across the US have had tow trucks appear out of nowhere, offering assistance without being called. These unsolicited towing services come with exorbitant price tags, often totaling tens of thousands of dollars for a tow that was initially quoted as costing only a fraction of that amount.
In these cases, towing companies are holding both the truck and its cargo hostage, demanding staggering sums of money, such as $10,000, $15,000, $40,000 or even $202,000 in the VA case.
Think need or required towing is high....Introducing impound towing.
This practice involves removing illegally parked or unauthorized vehicles from privately or publicly owned property without the vehicle owner's consent.
Eight common predatory towing practices include:
Excessive hourly or per-pound rates,
Unwarranted additional charges,
High daily storage fees,
Vehicle release delays,
Cargo release delays,
Vehicle seizure without cause,
Misreporting nonconsensual tows as consensual,
Damage due to improper towing equipment.
One of ATA's findings was the wide variation in billing practices within the towing industry. One in four crash-related invoices analyzed were not itemized, which can lead to disputes and inflated pricing.
To combat predatory towing there are some things you can consider:
Contacting local trucking associations to establish relationships with preferred towing companies.
Researching towing laws in states where their trucks operate.
Instructing drivers to document accident scenes thoroughly.
Scrutinizing invoices for excessive charges.
In extreme cases, trucking companies are advised to involve insurers or Attorneys to negotiate or take legal action, such as filing lawsuits or sending demand letters. Additionally, they can submit Freedom of Information Act (FOIA) requests to obtain relevant records from law enforcement and transportation authorities.
The ATA (ATRI) report sheds some light on an ongoing issue in our industry. Virginia made strides in efforts to better manage towing operations and operators in our State. Not only do we have the Board of Tow and Recovery Operators, but the industry is also overseen to some extent by the Department of Criminal Justice Services. All tow operators and drivers must have fingerprint-based background checks through the agency to operate. As someone licensed for this purpose by that entity, I encourage you to be vigilant and take action to protect yourself from predatory towing practices. The goal is to ensure fair and transparent towing services through what amounts to extortion prevention. Choose your tow provider wisely when you can and when you can't, and be prepared to battle it out.
Rob Report is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.
