New York City consumer protection officials are putting hundreds of tow truck companies on notice, warning they’ll swiftly revoke licenses from operators that rip off drivers.
The city Department of Consumer and Worker Protection has, since late February, sent warning letters to more than 300 tow truck companies that have licenses to operate in the five boroughs. The department on Tuesday also announced it filed an administrative petition against Instant Recovery, a tow truck company officials accused of routinely charging drivers illegal junk fees and illegally towing their cars.
City officials said they aim to revoke the operating license for Instant Recovery, accusing the company of overcharging at least 444 drivers. Through the petition, the DCWP seeks to charge the company $1.7 million in penalties and is asking a judge to order the company to pay roughly $33,000 in restitution to customers it overcharged.
The owner of Instant Recovery, Jake Rios, could not be reached for comment.
The release of the letters and petition to the city’s administrative court came after Gothamist published an investigation last month into the city’s tow truck industry.
Officials warned the city’s other licensed companies could face the same fate as Instant Recovery if they’re caught ripping off drivers.
“Instant Recovery refuses to follow the rules, ripping off New Yorkers by overcharging them, slapping on illegal yard or dolly fees, and forcing them to pay in cash,” DCWP Commissioner Sam Levine wrote in a statement. “Our lawsuit sends a clear message to all tow truck operators in the city that DCWP is watching — and is ready to hold any company using predatory tactics accountable.”
The Empire State Towing and Recovery Association, which represents some 200 licensed tow companies across the state, said it was considering suing the city because the tow rates legitimate companies are allowed to charge are not realistic.
“The current rates for towing and storing motor vehicles at the direction of law enforcement allowed by the City of New York are insufficient to cover the affected tow companies,” the group said in a statement through its attorneys. “Consequently, the current rates are confiscatory in violation of the New York state and United States constitutions.”
Gothamist’s investigation revealed the city’s unlicensed towing industry has expanded rapidly since 2020, putting consumers and bystanders at risk as competition over towing work has led to shootouts and fatal crashes.
Former Councilmember Bob Holden argued that the DCWP’s latest effort failed to address the city’s “ghost fleet” of unlicensed tow trucks.
“This is like the city bureaucracy inaction at its worst because everybody looks the other way,” he said. “They’re killing people. And unless we address this, it’s going to continue. It’s a very real danger in New York City.”
Following Gothamist’s investigation, Mayor Zohran Mamdani said officials would look into what could be done to address the city’s unlicensed industry. DCWP officials said it’s up to the NYPD to crack down on those operators. The DCWP’s inspectors are unarmed and do not have the authority to pull over vehicles.
An NYPD spokesperson did not respond to multiple inquiries about any plans to target unlicensed tow trucks.
Correction: This story was updated to reflect the number of tow truck companies that received warning letters from the Department of Consumer and Worker Protection. More than 300 of them received letters.