I parked at Walmart and my car disappeared – I was made to pay double the fee, the tow truck driver said ‘nothing could stop him’

TOWING companies in one US city are charging rampant towing fees due to a legal loophole – some have charged thousands of dollars.

Legally, there isn’t much lawmakers can do to stop towing companies from exploiting a loophole in the legal language.

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Drivers in Chattanooga, Tennessee, are being terrorized by towing companies who have found a way to charge well above the $150 maximum limit without repercussions.

Corinne Gould was visiting the city and had her vehicle towed after parking in a Walmart parking lot overnight.

The company, Chattanooga Impound, reportedly charged $300 to recover his car — twice the legal limit.

Gould said he attempted to pay the company the fee in cash, although they refused to issue a payment receipt.

By not providing a receipt and demanding money, there is no way to prove the unfair charge.

“It’s really unfortunate that some unscrupulous operators in the towing industry have apparently found a rather large loophole in municipal laws that they are taking advantage of,” Gould told the ABC affiliate. WTVC.

Another driver made a similar claim at the Beer and Wrecker Board meeting earlier this month, detailing a $2,000 charge to return his work truck from the same company’s impound lot.

Larry Bailey, the company’s operations manager, told the outlet that it was legally within its rights to charge above the city limit.

“We are not currently under any type of rule,” he said.

“If we want to charge $500, there’s nothing that I know of that would stop us from doing that.”

He excused the exaggerated fees charging customers for equipment.

“With the price of diesel and overhead and, you know, a $100,000 tow truck and $5,000 a month insurance, it’s a lot of money running a business like this,” he said.

Chattanooga Police Sergeant Jason Woods confirmed there was no rate cap for the company, as they are not part of the city’s official towing rotation.

Therefore, Chattanooga Impound may tow from private lots, such as retail stores or apartment complexes, without the restriction of city law.

“If a towing company is in our law, that regulation absolutely belongs to them,” Woods said.

“If they’re not in that towing rotation, we don’t have any authority on that.”

We receive complaints every day and my concern is obviously that citizens are being taken advantage of, which doesn’t make the towing industry look good.

Sergeant Jason WoodsChattanooga Police

He acknowledged the challenge the loophole poses to drivers and brought up the issue at the council meeting in hopes of sparking change.

“Something needs to be done about this,” he continued.

“We see complaints every day and my concern is obviously that citizens are being taken advantage of, and that doesn’t make the towing industry look good.”

Woods mentioned a towing company that is in the city’s rotation, American Tow & Recovery, which appeared to be working together with Chattanooga Impound to further exploit the legal loophole.

Chattanooga Impound would tow the vehicle and then customers would be directed to pick up their car at American Tow & Recovery.

“Community members and others have told me that if Chattanooga Impound is towing a vehicle, American Tow has been used to pick up those vehicles,” he explained in a follow-up article.

As the situation developed, Woods said there was reason for an in-depth investigation to uncover the connection.

Shannon Yates of Doug Yates Towing explained his actions from a towing company’s perspective.

What to do if your car is towed

Unfairly or not, recovering 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 some steps you can take to get it back.

Steps to follow when your car is towed:

• Try to find out why your car was towed. Haven’t you seen a “No Parking” sign? Did you miss your car payment? Have you returned to a lot where there were unpaid citations? Finding the reason may restrict the phone numbers to dial.
• Locate the vehicle. Most states, cities or counties require towing companies to leave some type of contact information via a posted or mailed sign.
• Recovery dates and times depend on the company that towed the vehicle, but these times will be posted on the website or may be provided by a representative.
• Pay the fees. Be careful to be as quick as possible, as some towing yards may charge per-day storage fees.

If you believe your vehicle was improperly towed, you can dispute the action by following these steps:

• Be quick – many states have a small window of time in which it is acceptable to file a claim against a company that improperly towed your vehicle.
• Gather supporting documents: photos, emails, receipts, police reports, and witness statements, if applicable. The more evidence, the better.
• Familiarize yourself with local laws, as laws for towing companies vary by state.
• Try talking to the towing company. Sometimes it may have been a simple oversight and the matter can be resolved quickly.
• Contact your local Justice of the Peace as they may have more information or resources to help. They are often used for towing cases.
• Speak to a lawyer. Many lawyers offer free consultations and, depending on the case, it may be worth calling on a lawyer.

Source: Oregon Department of Justice, National General, Rak law firm

“I could open XYZ Towing and subcontract Doug Yates, and I could charge whatever I want based on what you guys are selling me and there’s nothing you can do to me,” she said.

“So that’s what this towing company is doing.”

As more complaints flood the police department about rising towing company fees, several residents and drivers are calling on the local government to make changes.

Even towing companies want more regulations for towing companies that are not part of the city’s rotation.

Chris Anderson, senior advisor for legislative initiatives, told the outlet in a statement that the winds of change may be coming.

“There are varying levels of local, state and federal regulations regarding the towing industry,” he said.

“We are working to find a solution that passes federal law but protects Chattanoogans from unfair practices. We will have an announcement on the new legislation in the coming weeks.”

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