Chicago City Council Takes Firm Stand Against Predatory Towing with New Ordinance

Chicago City Council Takes Action Against Predatory Towing

The Chicago City Council recently approved an ordinance designed to address the escalating issue of predatory towing in the city. With the support of the National Insurance Crime Bureau (NICB), this significant legislation aims to hold rogue towing companies accountable and protect vulnerable drivers after accidents.

Predatory towing, which has seen an alarming increase of 89% across the United States, particularly affects citizens in major metropolitan areas like Chicago. Often equated to the practices of “ambulance chasers,” predatory towers exploit drivers' misfortunes by immediately responding to accidents and towing vehicles without proper authorization. This has drawn criticism and concern from both consumers and local officials alike.

A Unifying Effort for Reform

Led by Alderman Gilbert Villegas, the ordinance was passed unanimously by the Chicago City Council's Committee on License and Consumer Protection on April 8 and was adopted in a full council meeting shortly thereafter. The NICB was instrumental in rallying support for this initiative, emphasizing the need for comprehensive reforms to better protect citizens from the predatory tactics of certain towing companies.

Kyle McCollum, Vice President of Strategy, Policy, and Government Affairs at NICB, stated, "Predatory towers operate in a manner that preys on the emotions of drivers in distress. We applaud the efforts of Chicago, its city council, and Alderman Villegas for acknowledging this as a crime and taking concrete action to deter such behavior."

Key Features of the Ordinance

The newly adopted ordinance enhances penalties and provides law enforcement with the authority to impound vehicles used in unlawful towing. It also prohibits kickback payments made to individuals at crash scenes, strengthening consumer protection.

This extensive reform not only aims to curb the increase in unlawful towing practices but also educates consumers on their rights. According to the NICB, this proactive approach ensures consumers are now better equipped to deal with towing situations over which they have no control.

Consumer Tips from NICB

To assist consumers, NICB has provided the following tips to follow in the event of needing a tow:

1. If You Didn't Request It, Reject It: If you haven't called for a towing service and one arrives, wait for law enforcement to direct you to an approved towing company.
2. Know Before You Tow: Gather as much information about the towing service you use after an accident to protect yourself.
3. Avoid Cash Payments: Legitimate towing companies usually accept credit cards or other payment forms, ensuring records are kept of transactions.

Fighting Against Fraud

As the NICB continues its mission to combat insurance fraud and crime, it encourages anyone who believes they have become a victim of predatory towing to reach out for help. Consumers can report instances of towing fraud by calling 1-800-TEL-NICB or visiting the NICB's official website.

About NICB

The National Insurance Crime Bureau, headquartered in Oak Brook, Illinois, is a pivotal organization dedicated to combating insurance crime. Supported by a community of over 1,200 property and casualty insurers, NICB employs intelligence, analytics, and advocacy in its mission to eliminate insurance fraud from the industry. For more information on their efforts, visit NICB.org.