Chicago City Council approves ordinance seeking to rein in predatory towing companies
The Chicago City Council on Wednesday unanimously approved a new ordinance to try to crack down on rogue towing operations that prey on drivers after traffic crashes, often rebranding themselves over and over again to avoid punishment.
For years, Chicago has been trying to put an end to the practice of predatory towing companies falsely claiming they've been sent by a driver's insurance company after they got into a wreck, and then charging exorbitant fees for the driver to get their car back once it's been towed away.
CBS News Chicago has reported on cases where drivers were charged thousands of dollars to get their cars back.
"People are going to lose their vehicles. They're going to lose their insurance. It's way bigger than just, 'Haha, I'm taking your car," said Ripley Hammond, who fell victim to predatory towing in 2023. She had to go searching for her car after getting into an accident and having it towed away.
Her insurance ended up paying the $5,000 fee to get it back, but her insurance premiums went up as a result.
"Oh yeah, because I went through my insurance company. I don't even think I ever got my deductible back," she said.
Hammond said she's still dealing with the repercussions two years later. She had to get a new car, because her old one was found in even worse condition than when it was towed.
"I had started over with payments, and so I'm still … you know, not only the financial things of this situation, but the mental," she said.
A new ordinance approved by the City Council on Wednesday provides for a crackdown on rogue towing companies.
Victims can now file civil lawsuits against rule-breaking tow operators, and police will have the ability to tow away and impound predatory companies' tow trucks.
Ald. Gilbert Villegas (36th) wrote the legislation after hearing from victims and seeing countless stories.
"This passed 50-0, because all of my colleagues understand this is a big issue. We're number one in the country for rogue towing. As I stated during my testimony, I don't mind being number one for tourism or number one for business relocations, but I sure in the heck don't want to be number one for rogue towing," he said.
Victims like Hammond said they wish this had existed sooner.
"If you would have towed that car, I could have asked what the city offers community members for towing services, and they do tow them to lots, facilities. You can go immediately, and then there's legal tow trucks sitting outside to help you get your car back," she said.
Hammond said she hopes there will be some training for officers so they know what to do if they respond to a traffic accident and see a rogue tow truck driver at the scene. Villegas said that would be one of the next steps; talking to the Chicago Police Department about how to implement the ordinance.
