Chicago alderman targets predatory towing companies in new proposal
CHICAGO - A proposed ordinance regulating predatory towing companies in Chicago is one step closer to becoming law.
Ald. Gilbert Villegas’s (36th Ward) measure combating what’s commonly referred to as "rogue" towing practices received approval from the City Council’s Committee on License and Consumer Protection on Tuesday.
The proposal is expected to be considered at next week’s full council meeting.
Proposed towing regulations
What we know:
If approved, Villegas’ proposed ordinance would implement the following measures, according to supporters:
- Requires towing companies to have their fee schedule on file with the city's Department of Business Affairs and Consumer Protection
- Prohibits moving a vehicle to a second storage facility without written authorization by the vehicle owner
- Encourages companies to accept non-cash payments
- Provides a vehicle owner access to belongings inside their vehicle
- Prohibits towers from charging fees not outlined in their fee schedule or more than amounts listed
- Establishes penalties for soliciting towing business at accident scenes. The ordinance would make vehicles used to solicit or tow in violation subject to seizure and impoundment. The towing vehicle owner could be fined $10,000
- Allows an affected customer to enforce the ordinance by suing a towing a company. A court could then order the company to stop illegal practices and award damages to the customer
What they're saying:
The proposed ordinance earned support from various professional organizations like the American Property Casualty Insurance Association, the Illinois Insurance Association and the National Insurance Crime Bureau.
The NICB said in a news release they’ve seen an 89% increase in predatory towing claims across the country and that Villegas’ measure would be a "significant step" in protecting drivers from "unscrupulous practices."
Villegas argued that such rogue towing practices continued to be an issue in the city.
With his latest ordinance proposal, "we are adding more teeth to this legislation so that consumers have options they can pursue when needed," he said. "We have to continue to push out the bad actors and ensure that those who want to offer towing in a fair and legal way can do so."
What's next:
The next full City Council meeting is scheduled for April 16 at 10 a.m.