The Owner-Operator Independent Drivers Association (OOIDA) has raised serious concerns with the Federal Motor Carrier Safety Administration (FMCSA) regarding the urgent need for clarity and fairness in third-party towing costs. In a formal letter submitted on August 1, OOIDA spotlighted the alarming trend of exploitative towing practices that are affecting truck operators within the industry.

“If they need a tow, our members and all drivers just want to be treated fairly and respectfully,” OOIDA stated. “However, there’s a major problem when a tow bill that should not exceed a thousand dollars turns into an invoice for tens of thousands.”

Issues Arising from Nonconsensual Towing

Nonconsensual towing happens when law enforcement calls a local towing business to remove a tractor-trailer after an accident, stripping drivers of their ability to select the towing service or negotiate associated charges. This often leaves motor carriers stuck with the costs set by the next company in line on law enforcement’s rotation.

OOIDA’s Executive Vice President, Lewie Pugh, shared a troubling account with a House subcommittee about a member who was assessed a staggering $60,000 towing fee, which included an outrageous $9,000 charge for heat and humidity.

“During a nonconsensual tow, there is usually no opportunity for motor carriers to negotiate services or compare prices among multiple towing operators,” OOIDA noted. “Unfortunately, truck drivers are routinely held responsible for towing bills that are blatantly inflated by tens of thousands of dollars, and there is hardly ever any effective or efficient recourse. This financial impact on small-business truckers can be devastating.”

FMCSA Initiates Dialogue on Towing Fees

In an effort to tackle these challenges, FMCSA convened a meeting earlier this year to explore ways to enhance the transparency surrounding towing charges for motor carriers. Transportation Secretary Pete Buttigieg recognized the issue, stating that certain towing businesses take advantage of unfortunate circumstances by levying “exorbitant fees.”

In November, the Federal Trade Commission (FTC) announced a proposed rulemaking aimed at curbing unfair or misleading practices concerning service fees.

“FMCSA believes FTC’s proposed regulation may significantly benefit the agency’s regulated community, specifically as it relates to the predatory towing practices that have a substantial financial impact on CMV owners and operators,” the agency stated in a recent notice.

Source: Land line

The post OOIDA Fights for Equitable Towing Practices with FMCSA appeared first on Truck Drivers USA.

Shared Features of Senate and House Proposals

While differences exist between the two bills, several common attractions unite their proposals:

• Increased Truck Parking Funding: Both versions instruct the DOT to leverage discretionary grants to support truck parking initiatives.

• Exemptions for Electronic Logging Devices (ELDs): The allocation of funds is restricted from mandating ELD usage for livestock and insect haulers, preserving their statutory exemption.

• Restrictions on Inward-Facing Cameras and Apprenticeship Program Registrations: The bills ensure that no funds will be used to enforce the use of inward-facing cameras or to mandate registration with the Department of Labor for participation in the Safe Driver Apprenticeship Program.

• Collaborative Cargo Theft Reporting: The legislation mandates the DOT to work with the FBI, Department of Justice, and other agencies to monitor cargo theft trends and devise an effective strategy for prevention.

• Guidelines for Towing Practices: A direction is provided for the FMCSA to engage with various stakeholders to establish fair towing and recovery regulations and fee structures.

Chris Spear, President and CEO of the American Trucking Associations, emphasized the association’s commitment by stating, “we will continue to push the Senate to back up its clear statements of support for truck parking and cargo theft with robust funding, and we will seek to ensure that the final conference agreement addresses trucking’s priorities.”

Moving Forward: What Lies Ahead for Both Bills

The House and Senate bills are now awaiting full chamber votes. Should they both progress without amendments, a conference committee will be established to harmonize any discrepancies in the legislation.

Source: Commercial Carrier Journal

The post Senate Appropriations Committee Advances Transportation Funding Bill with Strong Majority appeared first on Truck Drivers USA.

FMCSA encourages industry participants to provide their input on the current methods related to the transparency of towing fees for commercial motor vehicle (CMV) owners. The focus is on whether owners are adequately informed about the associated costs and fees before their vehicle is towed.

On February 7, the FMCSA conveyed robust support for protections for truckers against steep towing fees in their comments on the Federal Trade Commission’s (FTC) proposed rule aimed at eliminating junk fees.

In correspondence, the FMCSA underscored that predatory towing fees significantly inflate expenses for CMV owners and operators. They backed the proposed prohibition on concealed and deceptive fees and urged the FTC to take further action to limit unnecessary and excessive mandatory fees that burden truckers.

“When a truck driver’s vehicle is towed, they can’t earn a living until they get it back — leaving them vulnerable to predatory junk fees from towing companies,” said U.S. Transportation Secretary Pete Buttigieg. “We support FTC’s efforts to stand up for truckers by acting to ban junk fees and prevent predatory towing fees that can cause significant financial harm.”

To share your comments on this matter, click here.

Source: The Trucker

The post FMCSA Extends Comment Period on Towing Fee Practices appeared first on Truck Drivers USA.

“The towing and recovery industry is an essential partner to trucking, as breakdowns and crashes can occur at any time,” The Foundation one-pager said. “However, conflicts do arise between these two industries due to differing objectives and priorities, which can lead to miscommunication, disagreement and far too often, predatory practices.”

OOIDA contributed to the American Transportation Research Institute’s study on the causes, prevalence, and mitigation strategies for predatory semi-truck towing. The study found that nearly 30% of crash-related tows involved predatory charges, a figure that jumps to 66% for invoices exceeding $30,000. These percentages only account for predatory billing; other issues like unjust vehicle seizures, delays in cargo release, or fraudulent extra-hour charges aren’t included, as they can’t be identified from invoices alone.

When insurance covers semi-truck towing and recovery fees, excessive charges often exceed coverage limits, leaving carriers and drivers to shoulder the financial burden. Predatory towing involves egregious overcharges, unnecessary additional costs, illegal asset seizures, asset damage from improper equipment use, or wrongful retention of trucks, trailers, or cargo. ATRI’s report indicated the average pre-tax bill for a crash-related tow is $8,925.90, while predatory tows average $18,154.52.

Motor carriers surveyed identified excessive rates (83%) and unwarranted service charges (82%) as the most prevalent and impactful forms of predatory semi-truck towing. In response, several states have introduced measures against unfair towing practices this year. These measures typically regulate rates for different vehicle classes, establish protocols for various towing scenarios, and create complaint and reparation procedures for predatory towing incidents.

FMCSA Predatory Towing Forum

The Federal Motor Carrier Safety Administration will host a public meeting on June 21, from 9 a.m. to noon Eastern, to discuss towing fee disclosures. Trucking stakeholders are invited to participate. OOIDA’s Doug Morris will present comments from the Association’s viewpoint. Register for this in-person/virtual event at the U.S. Department of Transportation Headquarters via the FMCSA website.

Understanding and addressing predatory practices in semi-truck towing is crucial for safeguarding the interests of carriers and drivers alike. Through continued advocacy and regulatory measures, the trucking industry can work towards fairer and more transparent towing practices.

Source: Land Line

The post OOIDA Strengthens Efforts to Regulate Predatory Towing Practices appeared first on Truck Drivers USA.

This new law establishes a Commercial Vehicle Towing Advisory Committee within the Department of Public Safety’s Public Commercial Transportation Enforcement Division.

“Predatory towing is an egregious practice that not only disrupts our state’s supply chain, but also costs Mississippi truck owners thousands of dollars for each unwanted tow,” said Mississippi Trucking Association President Hal Miller. “We are grateful to Mississippi legislators for listening to our concerns about this unfair tactic, and we thank Gov. Reeves for swiftly signing this bill into law.”

Among its responsibilities, the committee will set regulations and standards for towing services to be included on the approved tow list, define application procedures, and establish minimum qualification requirements. It will also set statewide maximum towing and storage rates for nonconsensual tows, including those on private property.

The law takes a firm stance against unfair practices, prohibiting towing companies from using per-pound billing for nonconsensual towing. It also mandates the creation of a Towing Service Standard Manual, a clear and transparent guide that governs the use of towing and recovery services for such instances involving commercial vehicles, ensuring a fair and just process for all.

Defined within the law, “nonconsensual towing” pertains to the movement, transportation, or recovery of a commercial vehicle by a towing service without prior consent from the vehicle owner or operator, whether from private property or initiated by law enforcement.

Furthermore, the law ensures that vehicle owners or their representatives can access personal property from their nonconsensual towed vehicles at storage facilities, irrespective of whether payment has been made for the towing service.

Before initiating a nonconsensual tow, towing services must document the vehicle’s condition and reason for towing, providing multiple photographs from various angles upon request by the vehicle owner. Moreover, the law prohibits the use of vehicle immobilization devices by towing services unless directed by law enforcement.

This legislation will be effective on July 1.

Source: Commercial Carrier Journal

The post Mississippi Sets Out to Stop Predatory Towing, Enacts New Law appeared first on Truck Drivers USA.

The Owner-Operator Independent Drivers Association (OOIDA) has actively collaborated with states for years to formulate regulations safeguarding truck drivers involved in nonconsensual tows. The lack of transparency in towing service pricing has left truckers vulnerable to exorbitant costs, highlighting the need for protective measures.

In Florida, the Legislature has passed a bill addressing concerns about predatory towing practices, particularly noteworthy given the state’s notorious reputation in this regard. The absence of statewide maximum rates for towing or storage in Florida necessitates action at the county level, with cities also having the authority to establish rates. The approved legislation, led by Rep. Melony Bell and Sen. Keith Perry, requires counties to set maximum rates for cleanup and disposal related to nonconsensual tows. It also mandates online posting of rates and establishes a complaint resolution process.

Florida Trucking Association President Alix Miller said the legislation is “a huge victory” for trucking.

“HB179 will weed out the predatory towing tactics of bad actors and make the entire industry better and safer,” Miller said.

Kentucky is making progress on the towing issue, with senators unanimously forwarding a comprehensive bill to the House. The proposed SB107 mandates towing companies to submit current rate sheets to local law enforcement agencies. Failure to comply could result in removal from wrecker logs for six months, with repeat offenders facing a one-year removal period.

In Mississippi, two bills are advancing to address concerns about nonconsensual towing and charges for commercial vehicles. The proposed HB1622 establishes a commercial vehicle towing advisory committee to regulate towing and recovery service providers, set towing rates, and create a dispute resolution process for truck owners. Disciplinary actions against towing and recovery service providers would also be introduced.

Missouri’s House bill, sponsored by Rep. Dave Griffith, aims to empower truck drivers to file complaints if they believe they were overcharged for a nonconsensual tow. It includes provisions for documentation, itemized receipts, and security requirements to prevent unjust charges.

Virginia has approved two bills intended to protect the public from predatory towing. SB94 and HB1073 prohibit tow truck drivers from soliciting or offering tow services directly or indirectly at the scene of a wrecked or disabled vehicle. Violators could face fines, and repeat offenders may face imprisonment.

Sen. Bill Stanley, R-Franklin, said his bill addresses a specific problem that is happening too often within the state.

“You have tow truck companies that are using paramedics, first responders that respond to accidents or disabled vehicles or trucks on the side of the road,” Stanley said. “(Tow companies) talk to these first responders and say if they provide their business card and it results in a tow, that (the first responder) will get a kickback.”

These legislative efforts underscore a collective commitment to rectify unfair towing practices, offering a mix of transparency, accountability, and protection for truck drivers and consumers alike.

Source: Land Line

The post Several States Taking Steps Forward, Prepping to Pass Towing Reforms to Protect Professional Drivers appeared first on Truck Drivers USA.

Recent years have witnessed a documented surge in distressing tales of predatory towing, ranging from exorbitant charges for basic boot removal to staggering amounts like $140,000 for a single tractor-trailer accident. Investigations have brought to light the training provided to towing professionals on inflating invoices, often billing excessively for overhead items such as headsets.

Both Buttigieg and FMCSA “expressed strong support for trucker protections against predatory towing fees in a comment filed on the Federal Trade Commission’s (FTC) proposed rule banning junk fees.”

This move aligns with a broader effort against “junk fees.” The FTC hopes that a rule would stop and prohibit “businesses from charging hidden and bogus junk fees by requiring them to include all mandatory fees when quoting a price.”

“FMCSA believes that predatory towing fee practices fall within the purview of FTC’s proposed rule, which would greatly benefit truckers if finalized,” FMCSA said.

“When a truck driver’s vehicle is towed, they can’t earn a living until they get it back — leaving them vulnerable to predatory junk fees from towing companies,” Buttigieg said. “We support FTC’s efforts to stand up for truckers by acting to ban junk fees and prevent predatory towing fees that can cause significant financial harm.”

FMCSA Acting Deputy Administrator Sue Lawless emphasized the extensive repercussions.

“Predatory towing negatively impacts consumers, including commercial motor vehicle drivers and trucking companies,” Lawless said. “It is detrimental to the overall health of the trucking industry, and it’s time to end excessive rates, surcharges and other unfair fees associated with predatory towing.

Attorneys handling tow disputes have flagged this issue as existential for truck owners, with carriers involved in predatory towing situations facing grim legal prospects.

Various states have taken up the fight against predatory towing, with Maryland enacting robust laws against non-consensual towing ordered by the police. In Florida, a new bill proposes setting maximum towing rates and storage fees, mandating tow companies to accept diverse document types and payments, along with additional regulations. Similarly, a Missouri bill aims to enforce itemized receipts for towing, heightened documentation requirements for storing towed vehicles, and a streamlined process for cargo owners to retrieve their goods.

The Owner-Operator’s Independent Drivers Association has actively supported both bills, advocating for federal protections.

“There are a number of states interested in making changes regarding nonconsensual and predatory towing including Missouri, Maryland and Tennessee and others,” an OOIDA spokesperson said.

The federal initiative, part of the broader Biden Administration push against “junk fees,” targets not only non-consensual tows but also addresses issues related to parking lot operators.

The Department of Transportation (DOT) and FMCSA summarized the problem, emphasizing the vulnerability of truckers once their vehicles are towed. Predatory towing companies leverage their vehicle possession to exploit truckers who find themselves in a disadvantaged position.

FMCSA specifically called for the following actions:

1. Ban junk fees for unnecessary goods or services: Prohibiting companies from charging fees for ancillary goods or services with no value or that reasonably should be included in the upfront price.
2. Prohibit or restrict excessive junk fee practices: Encouraging restrictions on practices such as charging an excessive number of fees, excessive amounts for a fee, or variable fees for fixed costs.
3. Treat each illegal junk fee as a violation: Proposing that each illegal junk fee be considered a separate violation, expressly prohibiting companies from charging undisclosed mandatory fees.

While the FTC’s junk fees proposal is still in progress, there are steps owner-operators can take to protect themselves from and contest unfair billing and towing practices.

Source: Commercial Carrier Journal

The post Industry Leaders, Buttigieg and FMCSA, Propose Penalties for Predatory Towing appeared first on Truck Drivers USA.

The Missouri-based Owner-Operator Independent Drivers Association (OOIDA) and the Missouri Trucking Association stand in support of this initiative, emphasizing the need for trucking operators to have recourse in cases of perceived overcharging during nonconsensual tows. Currently, state law prohibits operators from filing complaints in such instances.

Griffith’s bill, HB2214, not only seeks to rectify this limitation but also introduces additional provisions to enhance protection and recourse for third parties. Companies holding or storing impounded goods would be allowed to require owners to complete documentation indicating the release of property, coupled with the mandatory provision of an itemized receipt.

Furthermore, the bill introduces a significant change concerning the release of commercial vehicles from towing company possession. Starting Oct. 1, a 30% security requirement of the charges for towing and storage would be imposed.

Proponents of the bill argue that it safeguards individuals from exorbitant charges and brings Missouri in line with other states that have similar protections. They believe this legislation is a necessary step toward preventing unfair practices during nonconsensual tows.

However, critics express concerns, particularly in relation to potential negative impacts on small towing businesses. Doubts arise about the practicality of truck owners returning to pay outstanding charges, raising questions about the viability of the proposed legislation.

This is not the first time such legislation has been proposed. In 2021, a similar bill aimed at providing additional consumer protections for truckers facing unscrupulous towing operators faced a gubernatorial veto. Governor Mike Parson deemed the proposal legally problematic, questioning the ability of the Joint Committee on Transportation to regulate towing rates.

Doug Morris, OOIDA director of state government affairs, said that existing safeguards are sufficient and that the proposed legislation could burden legitimate towing businesses without further enhancing consumer protections.

“The only thing stopping the Missouri bill from passing is the fact that the governor refuses to sign the bill and continues to support the unfair practices of predatory towers,” Morris said.

With the bill, once again, awaiting assignment to committee this year, OOIDA remains steadfast in its commitment to advocating for truck drivers and providing greater protection and recourse from nonconsensual tows.

Source: Land Line

The post OOIDA Urges Revision in Missouri Law on Towing appeared first on Truck Drivers USA.

Among the forms of predatory towing identified, 82.7% of motor carriers reported encountering excessive rates, while 81.8% experienced unwarranted additional service charges. Beyond these primary concerns, carriers faced various other issues, such as delays in truck release or access, cargo release, unwarranted truck seizures, and instances where tows were falsely reported as consensual.

A detailed examination of towing records related to crashes revealed that 29.8% of invoices involved either excessive rates or unjustified additional charges. The primary contributors to this figure included miscellaneous service charges (present in 8% of invoices), administrative fees (present in 6.5% of invoices), and equipment rates (present in 6.3% of invoices).

The existing regulatory mandates, consisting of municipal, county, and state regulations, are often inadequate in curbing these towing practices. The report addresses this issue by presenting an online collection of state towing regulations, along with highlighting key areas for enhancing the scope and application of regulations to close loopholes.

Further insights provided through analyses and interviews with legal experts offer strategies for motor carriers to safeguard against, identify, or address predatory towing. This includes guidance on reviewing invoices for signs of predatory billing and collecting data to dispute towing companies’ accounts of incidents when necessary.

“Predatory towing is a costly issue for motor carriers as well as compliant towing companies, and it has been overlooked for too long,” said Shawn R. Brown, Cargo Transporters’ vice president of safety. “With reliable data analysis and a thorough regulatory review, ATRI’s report sheds light on the sources of the problem and paths forward for addressing it by both regulators and trucking fleets.”

The complete report is accessible on ATRI’s website here.

Source: The Trucker

The post Predatory Towing Practices Researched by ATRI appeared first on Truck Drivers USA.