CHARLOTTE, N.C. (WBTV) – Truckers and tow truck drivers recently debated the aspects of new predatory towing rules proposed by the United States Department of Transportation. During a hearing hosted by the Federal Motor Carriers Safety Association, industry leaders listed the pros and cons of the potential rules that would limit “junk fees” and punish towing companies for violating the rules.
The action USDOT is seeking would primarily focus on commercial truckers who crash or breakdown on public roads and are towed. The WBTV Investigates Team has reported on towing companies with government contracts charging truckers as much as $80,000 for towing and cleanup services.
WBTV previously spoke with USDOT Secretary Pete Buttigieg about the proposed rules and some of WBTV’s reporting on towing was mentioned by a representative for the American Trucking Association during the hearing.
During the hearing, truck industry advocates argued that some towing companies are driving the cost of goods up for consumers by charging astronomical prices. What the trucker is transporting is often part of the negotiation process.
“Holding cargo hostage and doing so in a manner that doesn’t allow the truck company to question the invoice or explore the basis behind some of those charges,” Pam Bracher with the American Trucking Association said.
Representatives for the Towing and Recovery Association of America acknowledged the issue of bad actors is causing problems but said it isn’t indicative of the entire industry.
“I think it’s unfair that we cast a predatory towing, sound bite over the entire towing industry because we are not predators,” Ron Myers from Pine Tree Towing said.
Towing owners said some of the higher bills are caused by requirements in contracts with law enforcement looking to clear a crash from a road quickly.
“Costs have continued to go up because of the type of equipment that’s needed to perform the services that are required,” Jordan Davis said.
The differences in costs and regulation from county to county and state to state makes the interstate trucking and towing relationship even more challenging. Trucking companies might not even have a choice of which towing company is called to haul their equipment after breaking down.
One problem both truckers and towers agreed upon was the role insurance companies have played in exacerbating the problem. Towing companies claimed it’s not unusual to receive no payment for multiple recoveries or have insurance companies cap how much they will pay for a truck being towed. The challenges of getting paid end up driving up costs for everyone else.
USDOT Deputy General Counsel Brian Stansbury said he was encouraged by the dialogue between the two industries during. The possibility of a task force to compromise on the proposed rules was floated by multiple parties.
The deadline to submit comments on the proposed rules was extended to August 1, 2024.
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