Truckers Battle Predatory Towing Fees
Truckers often encounter exorbitant towing fees in unfamiliar areas, with some charges reaching as high as $100,000 for a single tow. The Owner-Operator Independent Drivers Association (OOIDA) has highlighted numerous instances of predatory practices, including a $9,200 fee attributed to high temperatures and a $500 charge for taking cell phone photos. These excessive costs can be devastating for independent contractors.
Types of Tows and Predatory Practices
There are two types of tows: consensual (chosen by the trucker) and nonconsensual (initiated by law enforcement, mostly after an accident). Non consensual tows often lead to inflated charges for unnecessary services. The Biden administration has labeled these hidden costs as “junk fees,” and is working on regulations to ban them. The Federal Trade Commission (FTC) is leading this effort, focusing on travel, banking, and rental housing, but truckers are highlighting the financial impact of predatory towing.
During non consensual tows, truckers have little control over the fees, which can include both reasonable and absurd charges, like $200 snack fees and communication charges. In some states, towing companies aren’t required to itemize charges, allowing for inflated bills. Doug Morris of OOIDA noted that while most towing companies are honest, a few exploitative ones can force truckers out of business.
Industry and Government Response
Transportation Secretary Pete Buttigieg supports banning junk fees and requiring businesses to show full prices upfront. Industry advocates like Doug Morris from OOIDA believe industry representatives are better suited to address the issue. Pam Bracher, the deputy general counsel for the American Trucking Associations is advocating for state laws mandating itemized invoices, maximum towing rates, a centralized grievance process, and cargo release provisions.
Predatory towing is a growing problem, with some towing companies charging tens or hundreds of thousands of dollars to release equipment and cargo after an accident. Common predatory practices include per-pound billing, resulting in inflated charges. To guard against predatory billing, experts recommend avoiding signing documents from towing companies, taking photos, forming relationships with reputable companies, and joining state trucking associations. Federal guidance on deceptive practices could help establish fair and consistent rates.
Truckers and advocates await the Federal Trade Commission’s (FTC) final junk fee rule and state actions. Until then, truckers remain vulnerable to predatory towing companies. The trucking industry pushes for fair service at a fair price, while the Federal Motor Carrier Safety Administration and FTC work towards regulatory solutions.
Legislative Action and Support
The American Trucking Associations (ATA) commended the House Appropriations Committee for supporting a provision to crack down on predatory towing as part of the fiscal year 2025 transportation funding bill. The bill directs the FMCSA to develop guidelines for towing and recovery regulations at all levels of government.
“Charging truck owners thousands of dollars for unwanted tows and holding cargo hostage disrupts our supply chain,” said ATA President & CEO Chris Spear. “ATA and our state associations are fighting against these predatory practices. We welcome this step to develop common sense reforms for transparency and fairness.”
Predatory towing involves severe overcharges, illegal asset seizures, asset damage, and illegitimate withholding of trucks, trailers, and cargo. An ATRI study found that 82.7% of motor carriers experienced excessive rates, and 81.8% faced unwarranted extra service charges.
Additional issues included truck release or access delays, cargo release delays, and tows misreported as consensual.
The report language on predatory towing was released after the House Appropriations Committee voted to advance the bill. Last month, ATA applauded other victories for trucking in the legislation, including $200 million to expand truck parking and provisions to:
- Strengthen the Safe Driver Apprenticeship Pilot Program.
- Block a waiver that would create a patchwork of meal and rest break rules.
- Prevent the Federal Highway Administration from imposing greenhouse gas emissions performance measures.
- Prohibit the implementation of congestion tolling programs.
Ongoing legislative efforts and federal support aim to bring reforms ensuring fairness and transparency in towing operations as the trucking industry continues to face challenges from predatory practices.
As the trucking industry grapples with the challenge of predatory towing, ongoing legislative efforts and federal support are crucial to ensuring fairness and transparency. With the Federal Trade Commission and government officials like Transportation Secretary Pete Buttigieg advocating for reforms, the push for clear pricing and itemized invoices is gaining momentum. Until these regulations are in place, truckers remain vulnerable, but the collective efforts of industry advocates and government agencies provide hope for a fairer future.
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