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Tow firms taking you for a ride?

By KITTY CAPARELLA & CATHERINE LUCEY
Philadelphia Daily News

caparek@phillynews.com 215-854-5880

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When Tow Decision's license was revoked, it continued to operate using the name of another company to circumvent suspension, the report found.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

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Comments

Posted 09:22 AM, 11/11/2009

longshanks

Of course Lew Blum and George Smith are on the list. Those businesses should be fined and shut down permanently because they are corrupt businesses.

Posted 11:18 AM, 11/11/2009

birdswinbaby

nice job Butkovitz....but um.....that "large gap you can drive a tow truck through" at L&I was likely created by payoffs from those tow companies to L&I officials so they look the other way.

Posted 01:26 PM, 11/11/2009

DonQ

Let's do a little math here: 2,153 tows in a three-month period averages out to 24 tows a day. Am I to believe that there are 33 towing outfits in this city sharing 24 tows PER DAY? Only a fool can. There is massive tax evasion going on in this racket, and it's out for all to see.

Posted 02:45 PM, 11/11/2009

joeace

These towing companies are like lawyers! Sharks ready to attack!

Posted 04:52 PM, 11/11/2009

citygoer420

the complaint stat is worthless... i mean who are you complaining to and why would you waste your time. swallow the pill pay the bill get your car out and go on with your life.

Posted 08:39 PM, 11/11/2009

geewiz

Just one month ago the controller failed to do a comprehensive audit on the real towing culprits the Philadelphia Parking Authority. Where millions are at stake. Oh but I forgot they are Democrats too. Take a look at who contributes to the controller. Yes it is time for a change in Philadelphia. Get rid of these corrupt politicians and start with the Grandstanding City Council. Vote for anyone but a Democrat.