States allow cash “kickbacks” for people who report cars for towing, watchdog group says

Tow truck corporations are slipping cash below the desk to those that document illegally parked automobiles, growing incentives for abuse, in line with a document from a client watchdog crew this is pushing states to prohibit the follow.

California, Texas and 14 different states have regulation that restrict so-called “kickbacks” from towing corporations, in line with a document from the U.S. Public Pastime Analysis Team launched Wednesday. The nonprofit is looking for the rest 34 states — together with Arizona, Louisiana and Ohio — to cross equivalent measures.

If extra states do not cross a ban, tow corporations will most likely proceed their “predatory towing” practices, PIRG mentioned. 

“You might be having automobiles being towed that in reality don’t seem to be inflicting a subject matter,” Teresa Murray, a PIRG client watchdog, informed CBS MoneyWatch. “However on every occasion you may have an incentive to name a tow corporate, then dangerous issues occur.”

Tow corporations generate profits by means of charging between $200 and $300 to a car’s proprietor after they come to retrieve their automotive from an impound lot. Murray mentioned some corporations do not thoughts passing $20 — and even $50 — to folks if it encourages them to name and indicate extra automobiles to tow.

Gasoline robbery reported around the nation as costs leap


Drivers most often get their automotive towed for illegally parking on non-public belongings, unpaid tickets or an expired car registration.
However some corporations might be abusing their energy, Murray mentioned. She mentioned PIRG has won court cases from drivers that some tow corporations haul away cars for minor offenses, like low air in tires.

Some tow truck drivers are even patrolling faculty cities, senior citizen complexes, neighborhoods populated by means of folks of colour and low-income communities searching for cars to take, Murray mentioned. He believes tow corporations focal point on the ones communities as a result of they suspect the folk there would possibly not have the time or sources to battle being centered for a tow.

“A large number of instances we pay attention about are anyone simply in a parking lot for 5 mins,” she mentioned. “They are simply preying on folks.” 

Towing kickbacks are commonplace around the country, PIRG mentioned, however Murray in particular famous a contemporary case in Detroit involving cops. 

Within the Detroit case, 3 former police officers had been accused of calling to have automobiles towed, and dealing at the side of the towing corporate to have automobiles take a seat in an impound lot for weeks, racking up charges. The tow corporate would then hike up the garage charge as soon as homeowners got here to retrieve their cars.

The officials are accused of receiving hundreds of greenbacks in kickbacks below the scheme, in line with a federal indictment. 

Car towing is already a profitable industry within the U.S. Automobile towing is projected to turn into an $11 billion trade this yr, up from $10 billion in 2020, in line with IBISWorld.

There are continuously justified causes for towing anyone’s automotive — like if it is blockading emergency division parking areas at a health center or occupying assigned areas at an rental complicated. Murray mentioned PIRG isn’t pushing for a whole ban on all car towing. Maximum towing corporations are doing their jobs ethically, she mentioned, however the document targets to prevent the handful of companies that don’t seem to be. 

Leave a Comment