Hawaii legislation takes aim at towing scammers
Predatory towing companies are willing to 'help' accident victims, but the cost can be prohibitive.
The Hawaii Senate Transportation Committee recently passed towing legislation that will add some measure of protection for residents against predatory towing companies, a move applauded by the National Insurance Crime Bureau (NICB).
Under SB 2384, if the “vehicle owner or operator is present and conscious at the time of the tow, the tow operator shall provide the motor vehicle owner or operator a written and itemized disclosure, signed and dated by the tow operator present at the location of the disabled vehicle, which shall disclose all costs for services that are to be performed prior to the motor vehicle being attached to the tow truck.”
According to Frank Scafidi, director of public affairs for National Insurance Crime Bureau (NICB), there is very little federal regulation regarding towing companies, and most of it is passed at the state level.
“It’s like the wild west out there for tow trucks,” Scafidi says. “Rogue towers will monitor the police scanner and just show up at a crash scene. They’ll hand the driver a pre-printed form to sign so they can take the car to their yard.”
Most drivers are shaken and may not be thinking clearly after an accident and assume the police have called the tow truck. Frequently, they agree to have their vehicle towed without considering the consequences of that decision. Sadly, it’s not unusual for a tow truck company to charge thousands of dollars in fees for vehicles towed and stored on their lots. When owners or someone else comes to claim the car, they’re presented with a bill for several thousand dollars and if they can’t pay the fee, the car becomes the property of the tow yard. “It’s legalized theft,” says Scafidi.
Towing fraud is also an issue in the city of Chicago, where rogue towers prowl the streets looking for cars in less affluent neighborhoods. One woman allegedly parked too close to a crosswalk one evening and came out in the morning to find her car missing. After calls to the police and her insurance company, she discovered it had been towed by a rogue tower who had been casing the neighborhood. The cost to get it back — $1500 for less than 12 hours.
NICB says it has seen an uptick in towing-reform legislation by states and municipalities, including Arizona and California. Scafidi says that Philadelphia recently passed an ordinance to tighten up regulations, particularly as it relates to training and equipment. Some cities have also instituted an approved tow operators list that works on a rotational basis depending on which company handled the last towing call.
Avoiding fraudulent towers
Following an accident, NICB recommends taking photos of the scene; the vehicle damage for all vehicles; the license plates of the involved vehicles; drivers, passengers and witnesses to the accident; and any related documentation such as driver’s licenses and insurance cards.
To avoid becoming the victim of a rogue or unauthorized towing company, NICB has several recommendations:
- Do not use tow trucks that arrive unsolicited to the scene, meaning if the driver or police did not contact them, don’t use that company.
- Do not provide any contact information or insurance information to unsolicited towers.
- Double-check to ensure that the company information on the towing release matches the information on the tow truck — e.g., company name, phone number.
- If the tow truck does not have any identifying information on it, ask for a company I.D. from the driver.
- If there are questions about whether or not the tow operator is legitimate, call the police.
- Do not allow a tow operator to tow the vehicle without being provided with a printed price list that details daily storage fees and any other miscellaneous charges.
- Make sure to get information on where the vehicle is being towed if it is somewhere other then a predetermined repair shop.
Consumers should be aware of some of the frauds that arise following an accident. More information on how to avoid towing scams and what to do following an accident is available from NICB.
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