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FMCSA calls out sham towing fees charged to truckers

Agency asks FTC to treat each illegal junk fee as a separate violation

FMCSA wants more penalties for junk fees charged by truck towing companies. (Photo: Jim Allen/FreightWaves)

WASHINGTON — A proposed rule aimed at cracking down on junk fees charged to consumers has caught the attention of the Federal Motor Carrier Safety Administration.

The proposed rule, issued by the Federal Trade Commission last year, would, among other things, allow the FTC to seek civil penalties against fraudsters and more readily obtain financial remedies for consumers who are harmed.

FMCSA weighed in on the proposal by calling out unscrupulous towing companies that overcharge truck drivers who call for assistance for a variety of reasons, including when they are involved in a crash.

“Predatory towing negatively impacts consumers, including commercial motor vehicle drivers and trucking companies,” said FMCSA Acting Deputy Administrator Sue Lawless. “It is detrimental to the overall health of the trucking industry, and it’s time to end excessive rates, surcharges and other unfair fees associated with predatory towing.”


In comments submitted to the FTC on Wednesday, Lawless cites several potentially unfair or deceptive fee practices used by predatory towers. They include hiding fees until the job is completed, charging for unnecessary or worthless services, and imposing an excessive number of fees for excessive amounts – all of which can add up to thousands of dollars, she said.

Once towed, truck owners and operators “are in a very vulnerable position and highly susceptible to predation,” Lawless wrote. “Predatory towing companies can and do use their possession of the vehicle as leverage to price gouge and otherwise prey upon [drivers] who are in no position to push back.”

Such practices, she asserted, “fall within the purview of the proposed regulation “which would greatly benefit truckers if finalized.”

A study published by the American Transportation Research Institute (ATRI) in November found that excessive rates and unwarranted additional service charges were the two most common forms of predatory towing, experienced by 82.7% and 81.8% of surveyed motor carriers, respectively.


ATRI also found that 29.8% of invoices were found to include either excessive rates or excessive additional charges. Roughly half of these cases had excessive rates for equipment, labor or storage, and the other half had excessive miscellaneous or administrative charges.

In supporting prohibitions or restrictions on excessive fee practices, FMCSA urged FTC to focus on consumers “who have little to no ability to avoid, negotiate, decline, anticipate, or limit the number or cost of the fees, or consumers who are vulnerable, in distress, or otherwise limited in choice by their circumstances.”

The agency suggested that a final rule treat each illegal junk fee as a separate violation, and that it expressly prohibit companies from charging or collecting fees “that are not appropriately disclosed, are not included in the total price, and/or cannot be fully calculated upfront.”

In addition, because truck drivers often drive in multiple states, FMCSA requested that the FTC “provide guidance on how [the proposed regulation] would affect different state and local laws governing fees in the towing industry, either in the final rule or in subsequent interpretive guidance.”

Click for more FreightWaves articles by John Gallagher.

39 Comments

  1. Grajeda, Herman

    I went of topic last post because I was more focused on Professional Drivers to be labeled Federal Employees, because we cross state lines, hauling to Deliver for the Supply & Demand of Goods & Services, biggest GDP in the world.

    To change gears, my 2012 International Prostar is impounded on April 4, 2022 because the Motor Carrier that sold to me made Los Angeles Port Police Department impound.
    Moreover, I mounted one camera on the Driver side mirror and one in the Passenger side mirror, as a result, all activity is recorded. I am asking any reader to contact me to refer an honest, that will fight for me and not sell out attorney.

    I was able to pay the fees for illegal impound, force impound and my Prostar is released.

    Most importantly, on a recording video, there is proof the Tow truck Driver chained the first rear axle to the chassi and tows my truck to storage tow yard. Then the Motor carrier is recorded entering the tow yard and pulled the Tow Driver to the side out of camera’s recording. The Tow truck Driver leaves the engine running, so can’t hear what the Motor Carrier and Tow Truck Driver are talking about.
    In addition, Tow truck Driver does not remove the chain of the first rear axle.
    A few hours pass and another person enters my truck, turns it on w/out the ignition switch original key. The recording proves the rear tire spins faster than the normal rotation. The tires have two painted white strips, prove the tire and see the tire spinning, uncontrollably.
    The driver turns my truck around ready to be released, out the gate when payment is completed.
    I turn on my truck, and wait for the air to built. I proceed to the exit and felt my truck extremely difficult to move forward making loud air escaping. I stop and check the truck. I don’t have experience with chains on chassi and axle so I don’t see it. Also don’t see cab air bag punctured, airless.
    On the freeway my truck makes loud metal grinding from the middle where the stick shift is located. Then my truck makes a complete stop and I did not make such operation. I exit the cab and inspect the truck plus find the chain trapped on the bottom of the second rear axle passenger tire. This trapped chain caused my truck to a force stop. This force stop damaged the transmission, and engine. I arrived at my location and called the tow truck company and explained the chain, the tow driver comes out the following morning to remove the chain. And every action is recoded. I had to junk my truck because oil, in large amounts from the engine was leaking. Small Transmission parts came out when I moved the truck several feet.
    LAPPD record of impound says, No Registration, yet the audio / video recording proves illegal tow.
    I paid the fees at DMV for $2500 and towing fees of $2000.
    In conclusion, the 2012 International Prostar is destroyed from transmission and engine.
    I paid $4500 to retrieve a damaged, junky truck.

    This is violation of my unalienable rights – life, liberty, and the pursuit of happiness. I only want Motor Carrier, LAPPD Towing company to compensate me for their wrong doing. I believe they not like when I destroy their business trucks.

    The 2012 International Prostar was the only truck I had to assist the Port of LA adjacent Port of Long Beach with the Supply & Demand of Goods & Service, the biggest Gross Domestic Product (GDP) in the world, the economy.

    I drove my boss’s truck to deliver Intermodal and parked it at same location. Then after my truck is impounded l. My Boss arrives to mount the updated 2022 DMV Sticker label on the front license plate. I used the truck foe several weeks unregistered. I have flick pics of the truck parked at same location w/ expired Registration.
    Moreover, No one made a complaint and demanded to be impounded.
    I have recordings of the force illegal tow.

    Please contact me [email protected] for any assistance so that I can receive another truck because of this force illegal tow practices.

    I am not scared, afraid of retaliation and I know something is going to happen to me. Please report this post to law enforcement for any possible crimes against a fellow Professional Driver.
    Thank you,
    Grajeda, Herman

  2. Grajeda, Hermam

    I have read several comments regarding this article and it is wrong that Professional Drivers are called Truck Drivers, These words are degrading.
    My opinion is we need to be labeled as Professional Drivers not Truck Drivers, hence, everywhere you go claim Professional Driver and not label ruck driver.

    I want to share a concept that has been on my mind and it is my duty to inform all Professional Drivers.
    I will start with:
    Motor Carrier Act of 1932
    Interstate Commerce Commission the authority to regulate the interstate trucking industry.

    Motor Carrier Act 1980
    Th Act reduced Gov. Control of Trucking Industry, as a result, eliminating certain restrictions for new Carriers entered the industry and encouraging greater price competition among carriers.
    Other Motor Carrier SAFETY Act
    My proposal is Motor Carrier Act of 21st Century for Professional Drivers labor to Federal Employees, Operators cross state lines to Deliver goods for American economy. In comparison, person with illegal contraband when apprehended is charged Federal crimes, sentenced to Federal Prison. Then Professional Drivers cross state lines and shall be Federal Employees.
    Compare Operators like the Hornet Bee, leaves hive, risks it’s life to gather pollen and deliver to hive, produce honey for the good of the economy. Operators continuously risk our life’s crossing state lines pulling the Supply & Demand of Goods & Services, the biggest Gross Domestic Product (GDP) in the world, the economy. Then return to homes as Federal Employees under Federal Motor Carrier Safety Administration.
    Federal Bureau Investigations employs Federal Agents, FEMA employs Federal employees, USPS employs Federal employees.
    Professional Drivers provides driving delivery services to the American economy, people, hence, the people, US economy shall support Truck drivers labor Federal Employees.

    Thank you,
    GH

  3. Michael

    North Carolina is EXTREMELY bad for predatory towing companies because they sued the state and won and now are allowed to charge whatever they want. I was parked in a public parking lot talking to my wife on the phone when one of these so-called companies snuck up and booted my truck and proceeded to tell me I owed them $5k or they were going to tow me and would cost me $10k+. I called the police and they were forced to unboot my truck because it’s illegal to boot an occupied vehicle and i was I a public lot. However not all drivers will call the police they’ll just call dispatch and end up paying these pirates out of fear of having their rig towed. Truckers keep this country running and we barely have safe places to sleep at night we should not be harassed for seeking in an empty lot to sleep or be taken advantage of when we need help. Without us you’d literally have nothing but we’re treated like garbage. It’s a shame.

  4. Jimmy Byrd

    Should be paid by the Mile or hr & wrecks should be charged by the hrs for cleanup & milage for tow . Other damage like fuel cleanup should be charged by state . You the fmcsa should have done this 50 years ago I was charged 15k plus 200 a day for upstate when a driver laid over a pup they did not flip it up just slid it up on a low flatbed was done in 3 hrs top. That’s 5k an hrs. Rip off. And you can’t call around so.e tow companeys have contracts l Iike NY thru way & other thruways they don’t let any other companeys tow you . The state trooper tells you who . This is a violation of your wright’s.

  5. Jimmy Byrd

    Should be paid by the Mile or hr & wrecks should be charged by the hrs for cleanup & milage for tow . Other damage like fuel cleanup should be charged by state . You the fmcsa should have done this 50 years ago I was charged 15k plus 200 a day for upstate when a driver laid over a pup they did not flip it up just slid it up on a low flatbed was done in 3 hrs top. That’s 5k an hrs. Rip off.

  6. Joel

    Predatory towing is at an all time High, couple of tips.
    1. If your towing your truck to a reputable mechanic/shop, call them first they know which towing companies to call.
    2. Shop around, call several tow companies in the area.
    3. Ask if they accept credit cards, checks, comdata, etc..if they only except cash stay away from them. Most reputable companies accept alternate payments other than cash.
    4. Once agreed on a price ask for a Quote number. Also let the tow company know that when thier driver shows up, you would like to see the invoice with quote # Given.
    5. Do not accept the driver of the wrecker to tell you he can’t give you an estimate based on what he sees now, most likely he is gonna try to jack up the price. Be firm and request amount of cost call the wrecking company if you have too. Be blunt with them and tell them the situation. Also advise them due to predatory towing incidents you want to be an informed consumer, believe it or not it works.

    Good luck drivers! Hope this helps
    Hammer down
    Stay safe
    Watch yours rears
    Keep the wheels spinning..

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John Gallagher

Based in Washington, D.C., John specializes in regulation and legislation affecting all sectors of freight transportation. He has covered rail, trucking and maritime issues since 1993 for a variety of publications based in the U.S. and the U.K. John began business reporting in 1993 at Broadcasting & Cable Magazine. He graduated from Florida State University majoring in English and business.