JUST days after Connecticut officially did so, another major American state is looking to restrict predatory towing practices.
The bill’s primary focus is on storage fees and how they’re assessed, with one particular change significantly benefitting local drivers.
The new laws could help save some drivers’ cars from a scrapyard sentence[/caption]
Capped and outlawed fees are the main benefits of California’s latest legislation[/caption]
California Assembly Bill 987 was officially signed into law on Monday by the state General Assembly.
The bill makes significant changes to towing practices in the state, firstly amending California’s vehicle code to define what an “unreasonable” storage rate and/or fee is, and outlaw it.
The bill now calls “any storage fees charged for state holidays that exceed the posted daily storage fee” unreasonable.
In other words, California towing companies will no longer be able to overcharge customers for the state holidays on which their vehicle is impounded.
This is a major win for drivers, as without the new legislature they may be forced to pay whatever number they’re told in order to get their vehicles back.
The bill also specifies a slew of fees that are considered unreasonable, including administrative or filing, security, dolly, load and unload, pull-out, and gate fees.
Limits were also introduced on how after-hours towing fees are priced, capping them at 10% more than the typical rate.
It also specifies that if a vehicle is recovered within the first four hours of it being impounded, no more than 50% of the company’s daily storage fee can be charged.
Similarly, if a vehicle owner pays all fees for their vehicle and requests its release but the towing company isn’t able to do so that day, it cannot charge the owner for storage fees on days it failed to release the vehicle.
While the final draft of the bill is still a major win for drivers, it originally sought to restrict predatory towing practices even further.
For example, regarding fees on state holidays, the bill originally said it was unreasonable to charge any storage fees on days a towing company isn’t open, such as on state holidays.
The bill also included a clause which called storage fees for vehicles towed during natural disasters unreasonable, and those for stolen vehicles recovered by the company if the vehicle was picked up within a week of initial storage.
These changes were lobbied for due to the original text conflating two different business models.
Whereas the towing business has storage as a primary focus, automotive repair facilities also store vehicles and thus are subject to the bill’s specifications, but only do so as an ancillary service.
What to do if your car is towed
Wrongfully or not, retrieving a towed vehicle can be a hassle.
If your vehicle is towed after parking in a “No Parking” zone or other legitimate reason, there are a few steps to take to get it back.
Steps to take when your car is towed:
- Try to figure out why your car was towed. Did you not see a posted “No Parking” sign? Did you miss a car payment? Did you return to a lot where you have unpaid citations? Finding the reason can narrow down the phone numbers to dial.
- Locate the vehicle. Most states, cities, or counties require towing companies to leave some form of contact information via a posted sign or sent by mail.
- Recovery dates and times depend on the company that towed the vehicle, but those times will be posted to the website or can be recited by a representative.
- Pay the fees. Be careful to be as prompt as possible, as some tow yards may charge storage fees by the day.
If you feel your vehicle was wrongfully towed, contesting the action can be done with the following steps:
- Be prompt – many states have a small window of time where it’s acceptable to file a complaint against a company that wrongfully towed the vehicle.
- Gather supporting documents: photos, emails, receipts, police reports, and witness statements if applicable. The more evidence, the better.
- Get familiar with your local laws, as laws for towing companies vary per state.
- Try speaking with the towing company. Sometimes it may have been a simple oversight, and the matter can be resolved quickly.
- Contact the Justice of the Peace in your area, as they may have more insight or resources to help. They are often utilized for towing cases.
- Talk to a lawyer. Many lawyers have free case consultations, and depending on the case, it may be worth it to utilize a lawyer.
Source: Oregon Department of Justice, National General, Rak Law Firm
“The [original] bill fail[ed] to recognize these differenced and inappropriately applie[d] storage requirements across these two separate industries,” said Jack Molondanof, lobbyist for the California Autobody Association, per Repairer Driven News.
Molondanof furthered that the bill didn’t distinguish between consensual and non-consensual tows.
He added that the assembly understood his issues regarding the auto repair industry being targeted, which is why the changes were pushed for.
TOWING TAKEDOWN
While Connecticut and California are the latest states to restrict predatory towing practices, several other states have initiated similar reform.
In September, Missouri drafted legislation which fully overhauled how towing companies work, even down to their operational requirements.
Other states are focusing on protecting commercial vehicles from being toed or booted so as to not disrupt the flow of business and city-funded repairs, such as North Carolina.
