Predatory tow operators in Illinois are about to lose their favorite loopholes when a new towing law takes effect Jan. 1.
The Illinois Commerce Commission oversees safety and consumer protection for intrastate trucking and household goods movers.
Under current law, the commission can fine towing companies that break the rules, even if they try to keep operating under a new business name.
Despite the rule, state officials said that many of the worst offenders ignore penalties and continue operating under new business names.
“The worst offenders rack up hundreds of thousands in fines, continue their illegal operations, and have even reregistered under new business names,” ICC Chief of Police Ruben Ramirez Jr. said.
New law targets bad actors
Sen. Celina Villanueva, D-Chicago, played a key role in passing a new law that expands the state’s towing enforcement powers.
“Far too many drivers have been taken advantage of by shady tow companies that operate without oversight, move vehicles without consent and charge outrageous fees,” Villanueva said.
The new law targets towing companies that ignore fines and keep operating under new business names.
Under the law, the commission can impound tow trucks with unpaid fines. The state can also revoke license plates for those trucks.
Known violators will no longer be allowed to register under a new business name. Fraudulent towing operators will be banned from getting new licenses for three years.
The law also blocks tow companies from placing liens on essential items left in a vehicle, such as identification documents.
Another change limits where vehicles can be towed. Allowed locations include registered storage lots, licensed repair shops, or a location chosen by the driver.
Drivers can file safety towing complaints with the ICC and view existing complaints online.
“This law is about protecting people – especially those who don’t have time or money to waste fighting with dishonest companies just to get their car back,” Villanueva said. “By strengthening enforcement and increasing transparency, we’re making our streets safer and our system more just.”
OOIDA welcomes action on the issue
The Owner-Operator Independent Drivers Association supports state laws that protect truck drivers from nonconsensual towing.
Doug Morris is OOIDA’s director of state government affairs. He said most towing companies in Illinois and other states operate fairly.
“However, there are a few that give the industry a bad reputation, which is unfair to those who are fair and professional,” Morris said.
Other states implement new rules
Illinois isn’t the only state taking action is year. Arkansas, Connecticut, Indiana, and North Carolina also passed laws to address nonconsensual towing.
Lawmakers in Missouri and New Hampshire hope to follow suit. Bills targeting predatory towing have been filed in both states for consideration during their 2026 legislative sessions. LL
More Land Line coverage of Illinois news is available.
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