Towing Ordinance Could Lead To License Revocations7.19.11

WRTV

INDIANAPOLIS -- A new towing ordinance passed by the City-County Council on Monday night could carry stiff penalties for companies that don't follow the rules.
Councilors passed the ordinance by a 25-2 vote, months after a 6News report detailing towing practices many considered to be predatory in Broad Ripple, one of Indianapolis' cultural districts.
The ordinance is basically a bill of rights for motorists, setting standards for what towing companies can and can't do, 6News' Jack Rinehart reported.
Motorists must still be alert about where they are parking, but towing companies are required to follow guidelines, and the city will be watching.
"They're going to be able to pull the license of people who don't follow the rules," said attorney Paul Ogden. "Without that enforcement mechanism before, they just did whatever they wanted to do."
Consumers complained of exorbitant towing fees, hard to read warning signs and wrecker services that offered kickbacks on vehicles towed.
"Something is wrong with the picture, especially when it looks like you're parking in a benign spot and the costs were excessive," Mayor Greg Ballard said. "I think action needed to be taken."
The ordinance caps towing fees at $150 and limits daily storage fees to $30 after the first 24 hours. It allows consumers to pay with cash or credit card, requires wrecker services to keep impound lots open 24 hours a day and allows consumers to reclaim their vehicle within an hour of the tow.
Critics contend that a handful of predatory towing companies gave Indianapolis' wrecker industry a bad name. New regulations, some businesses said, will drive up security costs for small businesses.
"We put up as much signage as possible showing everybody … don't park here if you're not welcome," said James Edsall III of Last Chance Wrecker. "We are entitling those that are trespassers in giving them more rights and taking things away from our property owners."
Council leaders conceded that the ordinance is a work in progress and that adjustments or amendments may be necessary.
The ordinance will be delivered to Ballard's office on Wednesday. The mayor will then have 10 days to sign it.
The ordinance will become enforceable 30 days after it is published in the Indianapolis Star.
http://www.theindychannel.com/news/28599922/detail.html