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Apr 28, 2008 10:20 pm US/Central
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Wreck Towing Cons Growing Bolder Than Ever
Some Accident-Chasing Tow Companies Charging Excessive And Fraudulent Fees
CHICAGO (CBS) ―
For more than two years, the CBS 2 Investigators have been reporting on accident chasers – towing companies that specialize in removing cars from crash scenes.
As a result of that work over the last year, a new law goes into effect July 1 to help regulate these companies. But CBS 2 Investigator Pam Zekman reports some of their abuses have gotten worse than ever.
Even stricter laws are needed to protect you from the crash cons, the accident chasers who rush to accident scenes and promise you anything in order to tow your car.
Tawanna Virgil said a driver for Citywide Auto Recovery in Blue Island promised her a tow wouldn't cost her a thing, and that her insurance would cover the costs.
Citywide demanded $425 for the tow, $325 for labor and $375 for cleanup.
"They didn't clean anything up," Virgil said.
The company charged $250 for administrative fees, $650 for storage for four days, and $685 for special equipment.
"There was no special equipment -- that's a lie," Virgil said.
To get her car out of the Citywide lot Virgil's insurance company paid the entire bill -- $2,710.
Compare that to what reputable towing companies charge for a typical tow, about $150 for towing and cleanup, $50 for administrative fees and storage fees of $50 a day -- or $200 for four days. That's a total of about $400.
Virgil had to take out a loan for $1,960 to pay the insurance company back for the "excessive charges."
She is furious with Citywide.
"I have been robbed without a gun," Virgil said.
The 2 Investigators tried to speak with someone from Citywide, but when asked about excessive and fraudulent charges, a tow truck driver said only, "I have nothing to do with that."
Insurers supported the new law which takes effect on July 1, mandating that tow companies be registered with the state and disclose charges up front and in writing to accident victims.
But, in the meantime, Kevin Martin, executive director of the Illinois Insurance Association said, "The members of our association have had enough."
"They are trying to gouge the consumer before this bill becomes effective," he added.
One of the worst offenders is Showtime Auto Recovery. It is not incorporated as a business, does not have a storage lot and demands payment in cash only – all things which will be illegal under the new law.
But, the law won't prevent these companies from charging outrageously excessive fees.
For a laundry list of excessive, duplicate and fraudulent fees, State Farm paid Showtime a total amount of $4,200 to get one crash con victim's van back.
"Those costs are then passed on to consumers through higher premiums and what happens is everyone pays for it," Martin said.
Martin says the association will meet with legislators about beefing up the new law to protect accident victims from excessive charges.
The state police and tollway authority already regulate rates on expressways and tollways.
The 2 Investigators tried to reach the owners of Citywide and Showtime, but they did not return calls.
(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)
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