FMCSA Sets Hearing on Predatory Towing

Industrywide allegations of price gouging by some towing companies has caught the attention of federal regulators.

The Federal Motor Carrier Safety Administration (FMCSA) will hold a public meeting June 21 to get the perspective of all parties on “current industry practices regarding the disclosure of towing fees … and whether the owner is made aware of costs and fees prior to the tow,” according to a May 31 Federal Register notice.

The session, which will be at the Department of Transportation’s headquarters in D.C., was prompted by the actions of another agency — the Federal Trade Commission (FTC) — which issued a proposed rule in November intended to prohibit companies from misrepresenting the total fees they charge.

“FMCSA believes FTC’s proposed regulation may significantly benefit the agency’s regulated community, specifically as it relates to the predatory towing practices that have a substantial financial impact on [commercial vehicle] owners and operators,” the notice states.

FMCSA added that once vehicles are towed, owners are “in a very vulnerable position and highly susceptible to predation,” with the tow companies using their “possession of the vehicle as leverage to price gouge.”

It also noted that “towing companies have taken issue with this characterization,” arguing that some of the “fees identified by FMCSA are valid and necessary for towing companies to operate.” Accordingly, the towing industry overall doesn’t support the FTC’s proposed rule, according to the notice.