Enact cap on towing fees

Chattanooga has no law setting a limit on what a towing company can charge for removing a vehicle from private property. It should have one. An ordinance establishing and regulating such fees would bring order to a system that currently prompts numerous consumer complaints and that leaves wrecker operators vulnerable to charges of gouging.

There is some truth to those charges. Without a fee schedule established by law, tow truck companies are free to charge whatever owners think they can get for towing vehicles from private parking lots, businesses and other sites. Those fees, according to members of the Chattanooga Beer and Wrecker Board, which regulates towing companies, sometimes are exorbitant.

Though most companies report their fee for removing a vehicle -- usually without the owner's consent -- from private property range from $125 to $250, some have charged as much as $400, according to receipts sent to board members. Owners of the towed vehicles have little choice but to pay up promptly. If they don't, the companies tack on a daily fee -- $15, $20 or more -- for storing the vehicles on their lots.

Clearly, more transparent rules are needed though it must be remembered that the majority of vehicles towed from private property are parked there illegally. Last month, the Beer and Wrecker Board started that task. It asked Ken Fritz, city attorney, to write an ordinance to set maximum towing fees. Research undertaken by Mr. Fritz before crafting such an ordinance is illuminating.

The city attorney said other cities set a base rate of $75 to $85 for towing, but allow additional fees for specialized services such as a winch or other equipment. Those are considerably lower than those charged here for towing from private property. It is lower, too, than fees starting at $125-$135 currently authorized by city code for towing vehicles from public property or from an accident scene. An adjustment of fees here seems to be in order.

A new ordinance governing towing companies is in the works, but no fee schedule has been attached to it yet. Nevertheless, many towing company owners attended the Beer and Wrecker Board meeting late last week to hear discussion of the possible new regulations, to defend their industry and to make a case for reasonable fees in the proposed ordinance. Most, in fact, said they welcome fee regulation, but made it clear that their voices should be heard along with those of consumers when those rates are established. That certainly is a request that should be honored..

The city should establish a cap on towing fees, but it should not been done in a punitive manner. The interests of both the towing companies and consumers will be best served by rules and regulations that allow towing companies to earn a fair return on investment and that provide consumers with safeguards to protect them against unscrupulous practices like price gouging. That's a delicate balance, but it can be achieved if all parties involved work cooperatively toward that goal.