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Monday, November 16, 2009

Towing companies must tow the line on fees
Towing companies are the subject of a new report from the city controller's office.

 

A half-dozen years ago, Philadelphia tow-truck operators were reported for fighting over customers — literally slugging it out in front of startled motorists. As an industry, towing firms also routinely overcharged, leading one city councilman to remark that “these guys obviously don’t want to play by any rules.”
 
Well, at least the fistfights have been brought under control.
 
But a report issued last week by City Controller Alan Butkovitz cited eight of the busiest private towing companies for “openly violating the law” by socking customers with excessive fees in take-it-or-leave-it dealings that left customers with no appeal.
 
While the city code caps towing charges at $150, Butkovitz found that most of the companies charged higher fees, ranging from $175 for cars to $200 for commercial vehicles. Butkovitz even found the illegal, higher prices posted on signs around private parking lots.
 
Many tow-truck operators reviewed by the controller also refused to accept credit or debit cards from motorists seeking to recover their towed vehicles, despite a 2008 law requiring it.
 
Old habits die hard. While some firms offered lame excuses like not getting around to changing the prices on signs, towing companies here and elsewhere have been fighting caps on their rates and other restrictions for years.
 
Fortunately, at the urging of Councilman James F. Kenney, City Council has upheld price caps and taken a strong stand against what Butkovitz called “predatory towing.”
 
Where the city has fallen down, though, has been in enforcement on towing-fee abuses. It comes as no surprise that the city’s Department of Licenses and Inspections — perennially overburdened and dogged by corruption over the years — is cited by the controller for lax enforcement.
 
L&I officials, who coordinate enforcement with the Police Department, say enforcement has improved since the controller’s review was done. They pledge to be even more vigilant. For one thing, L&I plans to crack down on signs showing inflated towing rates.
The higher fines that Butkovitz recommends could strengthen the hand of L&I.
 
The fact that L&I receives few complaints over towing fees from motorists doesn’t mean much. Few owners of towed cars even know about the rate caps. And facing mounting daily storage fees, drivers obviously pay whatever they’re told is the going rate.
 
Even for motorists who want to contest the fees, there’s no clear appeals process. That bolsters the case for a Council proposal Kenney plans to introduce to establish an appeals board.
Rogue tow-truck operators function like bad-will ambassadors for the city — since any resident, commuter, or tourist who drives in and around Philadelphia could fall prey to their tactics.
 
It’s in the city’s interest to keep after firms that don’t, um, toe the line. The controller’s report shows that this is a work in progress.
Posted by Inquirer Editorial Board @ 1:00 AM  Permalink | Post a comment
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