Tow firms taking you for a ride?

Eight private tow-truck companies are "openly violating the law" by charging excessive towing fees and additional fees for extra labor with no appeal process, a City Controller's report charged yesterday.

Controller Alan Butkovitz described the actions as "predatory towing" and "price gouging" by the eight companies, which towed 84 percent of vehicles from private lots during a three-month probe last year.

Motorists have no recourse but to pay the exorbitant fees in order to retrieve their vehicles, but few filed complaints, said the report.

The city code states that no towing company may charge more than $150, but seven of the eight companies charged excessive fees, such as $175 for cars, $185 for SUVs and $200 for business vehicles, which were posted on signs at private parking lots.

"It is as if they've created a private government. If your car is towed, nobody can help you," said the controller.

Butkovitz blamed L&I for "a large gap which you can drive a tow truck through" in its poor enforcement of city codes and in its lax communication with the Police Department regarding tow-truck companies.

Butkovitz is seeking higher fines against the towing companies, and better coordination between the two departments.

In letters attached to the 34-page report, Police Commissioner Charles Ramsey and L&I Commissioner Fran Burns said their departments have improved procedures and communications since last year's probe.

The report found that only 44 motorists, or 2 percent, filed complaints with L&I as a result of 2,153 private tows by 33 operators between May 2008 and July 2008.

As a result, seven tow companies were temporarily suspended and L&I referred three companies to Municipal Court for prosecution.

Ramsey recommended that City Council pass legislation that would require a ticket to be issued on vehicles parked on private lots before they are towed, so that the owners have an appellate process.

Burns said that L&I regulates signs while the Attorney General's Office of Consumer Affairs Division investigates fraud.

The report identified eight tow- truck companies under investigation. They included George Smith Towing, Lew Blum Towing Co., Mystical, Steven's Towing, Manton Towing & Transport, and Bob's Auto & Towing.

When Tow Decision's license was revoked, it continued to operate using the name of another company to circumvent suspension, the report found.

The eighth tow company, Todd Marvin, listed no address on signs where to pick up vehicles, as required, the report found. A representative said last night that customers still must call to find out where their cars are stored.

Last night, the Daily News reached all but Tow Decision and Mystical, and a representative of Steven's Towing suggested calling the manager today.

The other representatives said they charge $150 for a tow and $25 a day for storage. A few said they had received letters from L&I notifying them that they could not charge above $150 for a tow, a regulation that had not been enforced before last year.

The firms have been changing their signs to reflect the new rates, but there may still be old signs still up, the representatives said.