DRIVERS are going to save thousands under a new “good faith” traffic law that’s coming into effect this July as officials are cracking down on steep fees.
Lawmakers stepped in with new regulations after one driver was charged an eyewatering $7,000 for a simple service.
GettyIndiana cracks down on “predatory” vehicle towing with stricter rules (stock image)[/caption] GettyIndiana led the nation in commercial towing complaints per mile from 2021 to 2023 (stock image)[/caption]The new bill targets so-called “predatory” towing in Indiana, which legislators say is the capital of these unlawful practices.
State Representative Jim Pressel, who introduced Act 1390, blasted the moneymaking practice in the months of debate leading to the bill inevitably passing.
“Indiana is the number one predatory towing state in the nation,” said Pressel.
“Our towing practices exploit and harm trucking companies in their time of need.”
Between 2021 and 2023, Indiana topped the charts for the most commercial vehicle towing complaints relative to miles driven, according to the American Transportation Research Institute.
The state also scored low for personal vehicle owner protections in a separate 2021 report by the Public Interest Research Group.
The new law targets excessive fees, bans hidden charges, and forces towers to return vehicles faster when bills are disputed, Indian Capital Chronicle reported.
It also introduces a “good faith estimate” requirement for itemized invoices and forces companies to swear all charges are legitimate and necessary.
“House Enrolled Act 1390 holds towing providers accountable,” said Pressel.
“Requiring transparency, capping fees and ensuring access to personal belongings, while penalizing bad actors who are taking advantage of a bad situation.”
Gary Langston of the Indiana Motor Truck Association said the issue became impossible to ignore.
After hearing concerns from commercial carriers, Langston said he was “bombarded with invoices” showing suspicious fees.
One 18-mile tow came with a fuel surcharge topping $7,000, he said.
He also flagged inflated hourly labor charges and vague administrative fees.
Langston pushed for a way to challenge bad invoices and speed up the release of vehicles and the cargo inside.
What to do if your car is towed
Wrongfully or not, retrieving a towed vehicle can be a hassle.
If your vehicle is towed after parking in a “No Parking” zone or other legitimate reason, there are a few steps to take to get it back.
Steps to take when your car is towed:
Try to figure out why your car was towed. Did you not see a posted “No Parking” sign? Did you miss a car payment? Did you return to a lot where you have unpaid citations? Finding the reason can narrow down the phone numbers to dial. Locate the vehicle. Most states, cities, or counties require towing companies to leave some form of contact information via a posted sign or sent by mail. Recovery dates and times depend on the company that towed the vehicle, but those times will be posted to the website or can be recited by a representative. Pay the fees. Be careful to be as prompt as possible, as some tow yards may charge storage fees by the day.If you feel your vehicle was wrongfully towed, contesting the action can be done with the following steps:
Be prompt – many states have a small window of time where it’s acceptable to file a complaint against a company that wrongfully towed the vehicle. Gather supporting documents: photos, emails, receipts, police reports, and witness statements if applicable. The more evidence, the better. Get familiar with your local laws, as laws for towing companies vary per state. Try speaking with the towing company. Sometimes it may have been a simple oversight, and the matter can be resolved quickly. Contact the Justice of the Peace in your area, as they may have more insight or resources to help. They are often utilized for towing cases. Talk to a lawyer. Many lawyers have free case consultations, and depending on the case, it may be worth it to utilize a lawyer.Source: Oregon Department of Justice, National General, Rak Law Firm
UNDER NEW LAW
Under the new rules, towing companies on the Indiana State Police’s emergency rotation list must charge only the rates they’ve filed.
If called by local police, the same applies; if no rates are set, they must use the ISP district’s standard charges.
For private property tows, companies must stick to the rate already agreed upon with the property owner.
If there’s no deal in place, they fall under the law enforcement rate rules.
Invoices will also need to include mileage, detailed descriptions of services, and time estimates for equipment use.
Inspection fees are banned, though companies can still charge for vehicles retrieval.
Truckers can now file complaints with the Attorney General’s Office if they think they’ve been overcharged.
Once a complaint is filed, towers must release the vehicle and its contents within 24 hours of getting 75% of the bill, a bond for the rest, and a copy of the complaint.
BILL JOURNEY
The law also bans kickbacks for towing referrals unless there’s a pre-existing contract.
But the journey to this overhaul wasn’t smooth.
Two separate towing reform bills failed in the House earlier this year, either never getting hearings or stalling on the floor.
Senators later folded the language into the Bureau of Motor Vehicles’ agency bill, then pulled it again, forcing Pressel to slip it into another bill on utility trailers.
Karrie Driscol, president of the Indiana Towing & Wrecker Association, called for a “pause” on the reforms, saying more work was needed.
“May 1, are you available?” she joked at a March hearing.
“Even if this does go, and passes, Chairman Pressel and I will be talking over the summer.”
Representative Bob Morris, Republican-Fort Wayne, opposed parts of the final version.
“I think it’s workable, but it actually kind of contradicts itself as well,” he said.
“There were so many different versions done on the language, trying to get it right.”
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