Chicago City Council OKs ordinance targeting predatory towing companies

CHICAGO - The Chicago City Council approved an ordinance aimed at putting more regulations on predatory towing companies in the city.

Ald. Gilbert Villegas’s (36th Ward) measure aims to combat what are commonly referred to as "rogue" towing practices.

Curbing rogue towing

What we know:

The ordinance received backing from various professional organizations like the American Property Casualty Insurance Association, the Illinois Insurance Association and the National Insurance Crime Bureau.

The ordinance will 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

The NICB said in a news release that it has seen an 89% increase in predatory towing claims around the U.S. and the new ordinance would be a "significant step" in protecting drivers from "unscrupulous practices."