Drivers to receive one-off $1 million payouts after tow trucks unfairly booted cars and charged ‘unfounded fees’

A TOWING company has settled a lawsuit for $1 million after being sued for multiple illegal tows, failing to obtain the proper permits and more.

Drivers were happy to see the towing company finally brought to justice.

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Wyatt’s Towing, an infamous Denver, Colorado towing company, was taken to court by state Attorney General Phil Weiser.

Court documents indicated the company was sued after several complaints from drivers detailed blatantly illegal tows with inflated rates.

It was also sued for operating without proper licenses or authority, as well as withholding too much money from the proceeds of vehicles towed at auctions, the NBC affiliate reported. KUSA.

An investigation into Wyatt’s towing began in late 2022, where it was determined that the company towed more than 3,000 vehicles in one month despite the Towing Bill of Rights being in effect.

The bill prohibits the towing of tow trucks from residential properties unless the Public Utilities Commission contacts a towing company directly.

The investigation also found that the company charged nearly 2,000 drivers a $75 “notification fee” without proper documentation.

“Under Colorado law, Wyatts Towing was required to provide basic information to consumers, and they failed to do so,” Weiser said.

Between 2012 and 2022, it was discovered that Wyatt’s Towing was retaining much of the auction proceeds when drivers did not get their cars back.

Colorado law states that towing companies must pay any proceeds from auction sales to the Department of Revenue to allow the agency to distribute the money to the original owner — which the company was not doing.

Additionally, the company held cars for more than 60 days to accumulate additional storage fees and retain more revenue from the sale.

According to court documents, Wyatt’s Towing pocketed well over $100,000 in illegal towing fees and auction sales.

MILLION DOLLAR SETTLEMENT

In 2023, the company was taken to court and received a $1 million settlement.

Part of the court’s ruling stated that the company must reject or forgive about $236,000 in debt from customers who failed to pay fees related to the case.

Wyatt’s Towing was ordered to pay $764,000 to the state in restitution to affected customers.

Payments to customers will occur later, a Public Prosecutor’s Office spokesperson said.

Even after agreeing to the agreement, the company denied the accusations

“Wyatt’s Towing broke the law to make a quick buck. That’s not right,” Weiser told the ABC affiliate KMGH-TV.

“People lost hundreds of thousands of dollars because they were charged fees they never should have been charged. Now people get their money back and we are going to reform how the trailer works.”

The towing company also agreed to change its business practices to better deal with trailers and customers in the future.

The changes will include reimbursing fees and costs for incorrect tows, improving documentation for consumers who retrieve their cars from the tow yard or cars sold at auction, and conducting audits three times a year to monitor trends.

EXPENSIVE FEES

One woman recalled the time her car was towed and her family had to come together to pay the fees.

Rosa Acosta said her car was towed due to an expired parking permit, despite several unsuccessful attempts to obtain a new permit from her landlord, according to Colorado Politics.

The towing company charged her $395 and told her she had to pay the balance in full or face interest, forcing her family to come together to pay the fine.

Acosta said having to pay the fee cost them money for rent and groceries.

However, after Senator Julie Gonzales’ car was towed by Wyatt Towing and she found it suspicious, she helped sponsor a bill to ban non-consensual towing.

The bill also said that if you were unable to pay the fees, you could be placed on a payment plan.

Under the bill, Acosta should have been able to make payments with 15% down and the rest on a payment plan, but she didn’t have that option.