When Towing Becomes Predatory

Towing is supposed to be a solution that helps get a disabled or wrecked truck off the road safely. But in reality, towing has become a financial ambush for many motor carriers and owner-operators. Predatory towing companies have turned what should be a straightforward recovery process into a multimillion-dollar extortion racket. It’s not just an industry problem; it’s an industry crisis.

How Predatory Towing Exploits the Trucking Industry

The American Trucking Association (ATA) defines predatory towing as any incident in which a towing company egregiously overcharges, illegally seizes assets, damages vehicles by using improper equipment, or refuses to release trucks, trailers or cargo without justification. In other words, it’s legalized highway robbery with little recourse for the victims.

A recent ATA study found that 30% of all tow invoices included excessive rates or fraudulent additional charges. Some examples include:

• A Virginia carrier was charged $202,000 for a single truck crash recovery.
• A 16-mile tow led to a staggering $6,000 bill.
• In Memphis, Tennessee, a driver refused to leave her truck for 33 hours to prevent the notorious A1’s Towing and Hauling from impounding it – even after proving she had paid for parking.
• A carrier offered $7,500 to a towing company to drop a hooked truck, and the tow company refused, saying it wasn’t enough.

One of the industry’s most notorious predatory tow companies, A1’s Towing & Hauling of Memphis, had its permit temporarily revoked for 30 days. Several motor carriers are now bringing a $5 million RICO civil case against it in Tennessee. Despite this, predatory towing continues across the country. It is an ongoing battle between unsuspecting drivers and operators looking to turn desperation into profit.

Why Carriers Have No Control Over the Towing Process

One of the greatest injustices of predatory towing is that motor carriers often have little or no say in which towing company is called. After an accident or breakdown, fleets cannot compare rates, approve the recovery process or verify whether proper equipment is used.

Over one-third of carriers surveyed by ATA reported they were never allowed to choose their own towing company. Instead, they were at the mercy of:

• Law enforcement-directed towing rotation lists, which are often unregulated.
• Unsolicited tow trucks that show up at crash scenes or breakdowns without being called.
• Low-clearance lurkers, tow trucks waiting by bridges and overpasses known for frequent accidents, swooping in to take the job before a call is even made.

The result? Inflated invoices, trucks and cargo held hostage, and excessive legal battles just to get equipment released.

The Rise of Cargo Ransoms

It’s bad enough when a towing company hijacks a truck, but when it holds cargo hostage, the financial fallout multiplies. Towing companies know that perishable or time-sensitive cargo creates an urgent need for resolution, so they leverage it to demand outrageous sums of money.

Some of the most shocking “ransom” cases include:

• A company charged $10,000 for a basic tow that should have cost a fraction of that amount.
• Another driver faced a $40,000 bill before the towing company would release the truck and cargo.
• The now-infamous $202,000 Virginia case, in which a towing company exploited every possible charge in the book.

For fleets hauling high-value or sensitive loads, the loss isn’t just in the tow bill – it’s in the damaged business relationships that result from delayed or spoiled deliveries. Some carriers are forced to pay outrageous costs upfront and fight the battle later.

Impound Towing and a System Built for Abuse

Think required crash or breakdown towing is expensive? Welcome to the world of impound towing.

This practice involves removing vehicles from private or public property without the owner’s consent, typically for illegal parking or failing to move a disabled truck fast enough. The catch? Tow companies often add hidden fees and penalties to what should be a simple impound process.

Common predatory towing tactics include:

• Charging excessive per-mile or per-pound rates.
• Adding bogus administrative or processing fees.
• Imposing high daily storage fees (sometimes up to $500 daily).
• Deliberately delaying vehicle or cargo release to increase storage fees.
• Claiming a nonconsensual tow was consensual, preventing a legal challenge.
• The improper use of towing equipment, causing additional damage to the truck.

One of the ATA’s key findings was that 25% of crash-related tow invoices were not itemized. This is a common way for towing companies to disguise excessive fees and inflate pricing.

What Can Fleets Do to Protect Themselves?

While predatory towing continues to be a problem, there are proactive steps carriers can take to protect themselves.

• Build relationships with reputable tow companies. Don’t wait until a crisis to find a towing provider. Establish a preferred towing partner and tell drivers whom to call first. Some states allow carriers to request specific companies, bypassing police rotation lists.
• Educate drivers on towing laws in each state. Each state has different regulations governing nonconsensual tows. ATA has compiled a list of state-by-state towing laws, and fleets should ensure their drivers and safety managers understand their rights.
• Train drivers to document every incident. One of the most effective defenses against excessive towing charges is strong documentation. Encourage drivers to:
  • Take photos and videos of accident scenes and breakdown locations.
  • Note the time, location and reason for the tow.
  • Obtain itemized invoices whenever possible.
  • Record interactions with law enforcement or tow operators in case of disputes.
• Review every invoice carefully. Carriers should never blindly pay a tow bill. Scrutinizing invoices can reveal overcharges, duplicate fees or fabricated expenses. If something doesn’t seem right, challenge it.
• Leverage legal action when necessary. When all else fails, fleets should not hesitate to involve attorneys or insurance providers to dispute outrageous charges. Freedom of Information Act (FOIA) requests can also be used to obtain relevant records from law enforcement and towing companies, adding leverage in negotiations.

Regulatory Action?

Some states, such as Virginia, have made strides in regulating the towing industry. They have implemented fingerprint-based background checks overseen by the Board of Tow and Recovery Operators and the Department of Criminal Justice Services. Even local law enforcement is stepping in. Sheriff Ronald Montgomery of the York-Poquoson Sheriff’s Office in Yorktown, Virginia, created a local predatory towing board to prevent it from becoming an issue. 

However, many states still lack strong towing regulations, leaving drivers and fleets at the mercy of a largely unregulated industry.

Trucking organizations, including the ATA and the Owner-Operator Independent Drivers Association (OOIDA), continue to push for federal oversight and standardized towing regulations to prevent further exploitation.

Fighting Back Against Legalized Extortion

Predatory towing is a multimillion-dollar scheme draining the trucking industry. Carriers have limited control over the process but can fight back by building awareness, documenting incidents, disputing invoices and advocating for stronger regulations.

The goal isn’t to eliminate towing – legitimate towing services are essential to keeping roads clear and safe. The goal is to eliminate the abuse, ensuring fair pricing, transparency and accountability in an industry that has become a financial minefield for fleets.

Until better regulations are in place, the best thing carriers and drivers can do is stay vigilant, document everything and be prepared to challenge unjustified fees. Because in predatory towing, if you’re not ready to fight, you’re prepared to lose.

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