Tow Companies With Predatory Practices Under Heat

While those in the hearing acknowledged most tow companies are operating in an ethical way, some have poor practices that HB 351 would seek to prevent.

A bill aimed at cracking down on predatory practices from towing companies flew through the House Public Safety & Homeland Security Committee meeting Tuesday.

House Bill 351, sponsored by Rep. Ed Osienski, D-Newark, creates the following requirements for the towing and storage of vehicles without the consent of the owner or operator:

Photographic evidence must be taken to document the unauthorized parking of a vehicle before it can be towed.
Tow companies and storage facilities must publicly display their rates.
Towing and storage rates must be reasonable, with reasonableness calculated in relation to the fees imposed by the companies for consensual towing and storage or based on average rates in the county.
A maximum total towing and storage rate of $500 can be imposed.
Tow companies must decouple or drop vehicles that have not been removed from parking areas if the owner returns before removal. The drop fee may not be more than 50% of the tow fee.
Storage facilities must be open or accessible to the public from 8 a.m. to 6 p.m. five days a week, and tow companies must make reasonable accommodations to redeem vehicles after-hours.
Individuals must be allowed to retrieve at no cost personal belongings from vehicles held in storage.
Tow companies and storage facilities must accept credit cards.

If a tow is completed in violation of the bill, the owner or operator is entitled to both reimbursement of the tow and storage fees as well as damages incurred to retrieve an illegally towed vehicle.

Tow companies would be liable for property damage sustained due to a non-consensual tow or storage.

Also those companies are prohibited to patrol for illegally parked cars, and they can’t pay or give other benefits to obtain information about cars parked without authorization.

Osienski pointed out that AAA Mid-Atlantic, a regional travel agency, supports the legislation.

Ken Grant, on behalf of the Wilmington Fines and Fees Group, said his group has heard from state police and others throughout the state that there’s been a ton of complaints about this kind of predatory towing and how it’s adversely affecting people to the point of people not being able to retrieve their personal belongings of car once it’s been towed.

“I stress most of the companies are honorable, decent, ethical and abide by all the rules, but there are some that clearly are taking advantage of people, arguably to be brought up on charges of auto theft or extortion if they were to choose to go through,” he said.

The Wilmington City Council recently voted to conduct a city-wide audit of parking tickets, towing and booting in the city.

This motion was driven by Wilmington residents submitting complaints about these practices and the impact it has had on them.

This legislation, Grant said, gives law enforcement officers an opportunity to do the right thing and to use the force of law to make sure that everybody is playing by the same set of rules.

HB 351 was released by committee and will head to the House floor for debate.

Tow companies with predatory practices under heat

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