After purportedly receiving a high volume of complaints, DCWP states that the agency launched an investigation that allegedly found Instant Recovery consistently charged illegal fees, overbilled customers and used other unlawful tactics to exploit New Yorkers.<\/p>\n
\u201cTow trucks often meet New Yorkers on their worst days \u2014 after an accident or a breakdown,\u201d said\u00a0Mayor Mamdani. \u201cInstead of offering help, companies like Instant Recovery have taken advantage of people when they need help most, extorting them with price gouging, hidden fees and coercive charges. Today, we\u2019re fighting back \u2014 demanding full restitution for every New Yorker harmed and making clear to the entire industry: if you prey on our neighbors and ignore the law, we will hold you accountable.\u201d<\/p>\n
As set forth in the\u00a0announcement<\/a>, DCWP is seeking full restitution for affected consumers, civil penalties for over a thousand purported violations and the revocation of the company\u2019s tow truck license.<\/p>\n The DCWP announced that it has also conducted a compliance sweep, issuing warnings to hundreds of tow truck operators citywide to reinforce compliance with towing and booting laws.<\/p>\n \u201cInstant Recovery\u2019s pattern of predatory behavior of bogus fees, cash-only demands and refusal to provide receipts is exactly the kind of consumer abuse this administration will not tolerate,\u201d said\u00a0Deputy Mayor for Economic Justice Julie Su. \u201cWe are pursuing this case without fear or favor and fighting to return every dollar owed to New Yorkers.\u201d<\/p>\n \u201cFrom dolly and special tow fees to overcharging for storage and drop fees, Instant Recovery treated the law as optional,\u201d said\u00a0Commissioner Sam Levine. \u201cOur lawsuit puts the entire industry on notice: DCWP is watching, and we will act.\u201d<\/p>\n Details of the Case<\/p>\n According to the DCWP, Instant Recovery has operated since November 2024, primarily in the Bronx. DCWP allegedly received a high volume of consumer complaints almost immediately after the company began operating including:<\/p>\n Charging more than the legally permitted amounts for tow, drop and storage fees DCWP Actions to Stop Junk Fees<\/p>\n Under Mayor Mamdani\u2019s\u00a0Executive Order 09<\/a>, DCWP has led a citywide crackdown on junk fees that inflate costs for consumers and undercut honest businesses. In January 2026, the Mamdani Administration\u00a0issued a final rule<\/a>\u00a0prohibiting hotels from charging excessive \u201cdestination\u201d or \u201cresort\u201d fees and banning hidden credit card holds. DCWP also filed a lawsuit against solar panel installation company and its owner for allegedly deceiving consumers and embedding undisclosed \u201cdealer fees,\u201d seeking millions in civil penalties and restitution.<\/p>\n Following the launch of the City\u2019s annual\u00a0Free Tax Prep<\/a>\u00a0initiative, DCWP also began a citywide sweep of paid tax preparers to ensure compliance with laws prohibiting illegal overcharging and hidden fees. The agency also continued its \u201cFee Free February\u201d enforcement actions targeting predatory employment agencies.<\/p>\n DCWP is expected to continue aggressive enforcement across industries to root out junk fees and protect working New Yorkers.<\/p>\n NYC Towing Services<\/p>\n DCWP licenses businesses that perform \u201cnon-consensual\u201d tows, including towing cars:<\/p>\n Blocking private driveways Vehicles may also be towed by government agencies, including the\u00a0NYPD<\/a>, the City marshal or the sheriff.<\/p>\n
\nConducting illegal tows
\nForcing consumers to pay in cash
\nRefusing to provide receipts<\/p>\n
\nParked on private property including private parking lots
\nImmobilized after an accident
\nStolen, abandoned, or broken down<\/p>\n