City Councilman Chris Anderson proposed an ordinance Tuesday to make it illegal for towing companies to "price gouge" residents by tacking on an extra $50 fee when they haul a vehicle from a private lot.
Currently, the city sets the maximum towing fee at $150, but a clause in the law allows police to charge an extra $50 for people to get their cars back within 24 hours.
However, several towing truck companies have also been using that clause to justify charging residents the extra $50 fee when their vehicles are towed without their consent, such as when a person parks in a restaurant parking lot but visits another business, Anderson said.
"I don't think they can legally do it now, but I'm making certain that it's clear," Anderson said. "Anybody that gets charged more than [$150] should file a complaint with the city so we can prosecute the offending company."
Chattanooga already allows towing companies to charge more than other cities, including Memphis and Nashville that have set the maximum fee at $125, Anderson said. He may consider in the future lowering the city's maximum fee.
The amended bill that will be introduced next week prompted other questions from the City Council about how the city plans to enforce the new restrictions.
Currently, the city can fine a towing company $50 for charging more than the city code allows.
But Councilman Russell Gilbert said that wasn't a strong enough punishment.
"Is there a big fine, penalty or jail time?" Gilbert asked. "Fifty dollars ain't nothing to [towing companies,] they'll keep doing what they're doing. We need something else."
Anderson said he was considering another proposal in the future to impose stricter punishments if towing companies are caught overcharging residents. But the city can't change the fine amount because it is set in the Tennessee Constitution.
The City Council also voted this week to approve a contract with FIS/Link2Gov for $100,000 to allow residents to use their credit card to pay their property taxes and other city fees.
Contact staff writer Joy Lukachick Smith at jsmith@timesfreepress.com or 423-757-6659.