Predatory Towing Ordinance Takes Effect Monday 8.10.11

WRTV

INDIANAPOLIS -- Starting on Monday, private towing companies will have to follow new rules mandated by the city.
A new towing ordinance which goes into effect next week will cap towing fees at $150 and will require business owners or managers to sign the tow order before moving vehicles.
City leaders said they've been aware of the ongoing towing troubles in downtown and Broad Ripple that have frustrated drivers, 6News' Jack Rinehart reported.
Steve Hart with Newpoint Parking said keeping spaces available for customers has become part of the shared cost of doing business in Broad Ripple.
"(Customers) pull up and see the sign and they don't pay attention to them. They get out of their cars and take off. I try to get them before they run off. I've not had to tow one car," Hart said.
The ordinance is expected to have a chilling effect on the city's towing industry. Most companies seem unwilling to chance a consumer complaint because it could hurt their chances of getting their towing licenses renewed.
Unregulated towing practices in Broad Ripple and downtown led to consumer complaints about predatory towing.
Drivers complained about exorbitant fees, difficult to read signs and wrecker companies that allegedly offered kickbacks to local business owners on towed vehicles.
Broad Ripple businessman Rick Sabatini said 6News' ongoing reports on towing have had a significant effect on predatory towing practices.  "As soon as (6News') earlier reports came out, predatory towing has dropped off considerably, to an almost non-existent level. And at least in our community, it's provided a huge difference in what has been perceived as predatory towing," Sabatini said.
In addition to capping towing and storage fees, the new ordinance will allow drivers to pay fees with credit cards and will allow them to have quick retrieval of their vehicles.
City Licensing Administrator Adam Collins said the ordinance has already impacted predatory towing, even though it hasn't yet gone into effect.
"The day to day complaints have dropped off, likely because now that the ordinance is in place, it defines the issues that are really the problem," Collins said.  City officials said they are still working on regulating towing signs that are posted on private lots.  Drivers can file a complaint with the Consumer Protection Division Office of the Indiana Attorney General at 317-232-6330 with towing concerns.
http://www.theindychannel.com/news/28826612/detail.html