Assembly Democrats: Bill Combating Rogue Tow Truck Operators, Predatory Towing Practices Advances

BILL COMBATING ROGUE TOW TRUCK OPERATORS, PREDATORY TOWING PRACTICES ADVANCES

(TRENTON) - Legislation sponsored by Assembly members Bob Gordon, Nilsa Cruz-Perez, Gordon M. Johnson, and Louis M. Manzo that would strengthen regulation of the state's towing industry and crack down on unscrupulous, rogue tow-truck operators preying on unsuspecting motorists passed the General Assembly today by a vote of 79 to 1.

The legislators crafted the measure in response to an increasing number of complaints of heavy-handed towing practices around the state.

"Some tow-truck operators have taken a Wild West mentality toward their work, engaging in overly aggressive practices that venture into the realm of price gouging and extortion," said Gordon (D-Bergen).  "More and more, motorists are finding their cars being held hostage, with ransoms totaling hundreds of dollars or more."

The issue of predatory towers was given attention last year in a series of articles in The Record of Hackensack, which depicted in detail the practices of predatory towers prowling private property and parking lots throughout North Jersey, looking for vehicles to tow.  The series noted that some motorists were charged fees up to $800 to retrieve their cars, which had been towed without warning.  Other motorists, who were able to intercept tow-truck operators before their cars were removed from parking lots, reported having to pay hundreds of dollars just to have their vehicles unhitched.

The legislation (A-4053), entitled "The Predatory Towing Prevention Act," would regulate the towing of vehicles from private property that have been damaged, disabled, recovered after being stolen, or parked illegally or without authorization.

The measure would add New Jersey to a growing list of states that have moved to rein in untoward towing practices.  Other states, including California and New York, have instituted minimum standards for tow-truck operators, while Virginia created a licensing board to oversee the trade.

The act would prohibit the towing of any motor vehicle illegally parked in a private parking lot, on private property, or from any common driveway without the consent of the vehicle's owner or operator unless the property prominently displayed three-foot-by-three-foot signs at all vehicular entrances with the following information:

• The purposes and times for which parking is authorized;
• That unauthorized parking is prohibited and unauthorized motor vehicles will be towed at the owner's expense;
• The name, address, and telephone number of the towing company that will perform the towing;
• The charges that will be assessed for towing and storage; and
• The street address and hours of operation of the storage facility where a towed vehicle can be recovered.

Exemptions to these provisions would apply if the parked vehicle in question was blocking a fire hydrant, fire lane, or the entrance or exit of the property.

The measure would prohibit towing companies from utilizing a storage facility unless it has business hours from at least 8 a.m. to 6 p.m., and can provide reasonable accommodations for after-hours release of vehicles.

"It's time rogue towers were held to a uniform, higher level of accountability," said Cruz-Perez (D-Camden), chairwoman of the Assembly Consumer Affairs Committee.  "Unless we enact a sensible statewide towing policy, unscrupulous towing companies will continue to ply their trade as they see fit, to the detriment of motorists everywhere."

Under the legislation, all tow-truck operators would be required to register with the Division of Consumer Affairs (DCA) as a prerequisite for doing business in New Jersey.  This registration, which would be applied for annually, would require applicants to submit the complete street address of each towing center and storage facility owned, the types of towing services provided, a valid certificate of insurance from a state-authorized insurer, a fee schedule for services provided, and a disclosure of any criminal convictions against owners or partners.

The director of DCA would be empowered to refuse registration to any towing company with a history of misconduct or owners that attempted to obtain registration through fraud.

Upon registration, each tow-truck would be required to prominently display both a registration decal and a notice informing consumers of their right to a written schedule of fees charged for towing and storage services.

The legislation would empower the director of DCA to establish a schedule of towing and storage service fees based, in part, on the fee schedules filed by individual companies.  Fees would be established for each county and would be found excessive if the fee exceeds 150 percent of the average fee charged per county.  Individual towing company fee schedules would be maintained on the Internet and be made available to the public in a way that allows consumer comparison of the fees for towing services by each registered company in the state.

In addition, the bill would make it illegal to:

• Give preferential treatment or prejudice to any person with respect to towing services, excepting membership in clubs or associations, such as AAA;
• Give "kick backs" for tips for providing information about illegally parked vehicles;
• Charge fees in excess those found on posted signage or established by DCA;
• Fail to uncouple a vehicle about to be towed if the owner or operator returns in time; and
• Refuse to accept debit, charge, or credit cards as payment for towing or storage services if they are normally accepted at an operator's place of business.

"Codifying how towing companies may operate in New Jersey will make it that much harder for individual towers to go 'rogue' and hold a person's vehicle hostage," said Johnson (D-Bergen).  "And making rates of service readily available to the public will greatly reduce the sticker shock that currently accompanies having your car towed."

The measure also would require tow-truck companies to retain all business records for a period of three years, subject to DCA inspection.  Companies also would have to carry liability insurance for each towing vehicle in their fleet.

All penalties for violations of the act would be collected in a special "Towing and Storage Administration and Enforcement Fund," which would pay for the act's enforcement and be administered by the state Department of Treasury.

The sponsors said that while the majority of tow-truck drivers operate above-board businesses, the actions of a few, unscrupulous individuals have tainted the entire industry to the point where legislation is necessary.

"These proposals would have a minimal impact on the majority of honest tow-truck operators in New Jersey," said Manzo (D-Hudson).  "Instead, they would effectively clamp down on the over-aggressive, borderline criminal behavior of a handful of operators who have made a mockery of their trade."

The measure now heads to the Senate for further consideration.

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