Service Request #5: Dude, Where's My Car?

This episode explores the "black box of mystery" surrounding predatory towing and impoundment, addressing questions about who authorizes towing, where vehicles go, and why it's so difficult to resolve issues when things go wrong. The discussion begins with an account from Kelly Prime, who experienced predatory towing firsthand in Brooklyn. She parked her old Mazda in a brightly lit, empty 7-Eleven lot, only to find it gone 15 minutes later. A 7-Eleven employee informed her it had been towed, not stolen, citing a high volume of daily tows and pointing to obscured warning signs. Google reviews for the 7-Eleven revealed numerous similar experiences, highlighting a widespread problem. The practice Kelly encountered is known as predatory towing, where towers actively seek out cars to impound and then demand inflated fees for their return. This issue is prevalent in many areas, including Detroit, Michigan, which serves as a case study due to its well-documented history of predatory towing. Tom Berry, a retired Detroit police lieutenant and fraud investigator, explains that towing is a multi-million dollar business. He clarifies the ideal function of towing as a public good: removing illegally parked cars blocking driveways or clearing accident scenes. In many cities, including Detroit, police contract private towing companies for these services. Tom recounts how, as a police officer, he used an approved list of towing companies. However, as a lieutenant, he discovered that some officers were bypassing this list, calling companies they had relationships with. These companies would inflate fees and offer kickbacks to the officers, leading to a federal investigation and convictions. Tom notes that many problematic towing incidents, like Kelly's, don't involve the police but rather private property impounds. He describes how predatory towing operations work, emphasizing that while most towers are honest, some exploit the system. Business owners, frustrated by non-customers occupying their parking lots, can contract towing companies to remove vehicles. Kelly's situation falls into this category: she parked at a 7-Eleven and patronized a neighboring restaurant, technically violating the parking rules. However, some towers employ sketchier tactics, such as using "spotters." These are paid individuals who monitor parking lots and alert tow companies when someone parks illegally and leaves the premises without patronizing the business. Spotters receive a cash kickback for each successful tow. While illegal in some cities, spotters are permitted in New York City and Detroit, contributing to the aggressive nature of some towing operations. Shane Nation, a tow truck driver with five years of experience, provides an insider's perspective. He started in the industry at 16, initially working for a notorious Detroit company known for predatory towing. He describes his initial acceptance of the company's aggressive methods, being told that complaints were just people disliking having their cars towed. Shane's work heavily involved private property impounds (PPIs), where his company had contracts with property owners, like apartment complexes across from hospitals, to tow illegally parked cars. He recounts how he and other drivers, often stationed around the corner, would quickly tow cars as soon as spotters confirmed owners had left the property. Initially, Shane felt no remorse for the distressed car owners, many of whom were visiting family in the hospital. However, as he matured and faced his own financial responsibilities, he began to empathize, recognizing the profound hardship a tow can inflict on low-income individuals. He describes constantly being perceived as "the aggressor" in confrontational interactions, a role he came to despise. Shane highlights the lack of regulation in private property impounds. He explains that tow companies simply hook up a car, notify the police that it's being towed for incorrect parking, and the police register it as a lien, preventing it from being reported stolen. There's minimal verification, making the system ripe for exploitation. This lack of oversight and verification is why, according to Shane, "everybody exploits it." His moral dilemma eventually led him to leave the predatory company. He sought employment with a different company where he could focus on "service" tows, such as clearing accident scenes or assisting broken-down vehicles, rather than PPIs. The insights from Tom and Shane shed light on Kelly's experience. She was caught in a PPI situation, likely observed by a spotter, leading to her car being towed by a contracted company. When Kelly's friends attempted to retrieve her car from the impound lot, they faced further challenges. Despite signs indicating a lower fee, the attendant demanded $350, claiming an extra fee because Kelly wasn't physically present and another for after-hours service, even though the office appeared open. This was a clear negotiation, or "bartering," with no fixed fee structure, effectively a "ransom" for her car. Tom confirms that tow companies frequently use such tactics, including pretending to be closed to inflate storage fees over subsequent days. They often demand registration and insurance documents, which are usually in the impounded car, forcing owners to spend days gathering new paperwork, incurring additional daily storage fees. Many companies don't disclose their fee structures or manipulate them, for example, charging for two days if a car is towed late at night and retrieved early the next morning, even if it was only there for a few hours. Kelly's friends were fortunate to retrieve her car the same night for $200, without a receipt. The speakers note that some towers strategically target older or seemingly underinsured cars, like Kelly's, because their owners are less likely to afford the fees or complain, making them "easy targets." If owners cannot retrieve their cars due to escalating fees, the tow companies can eventually sell them at auction or for parts, another revenue stream in this multi-million dollar industry. The lack of oversight is a major contributing factor. Towing regulations are a patchwork across states; many states lack caps on fees, disclosure requirements for rates, or mandates for notifying owners of a tow. Additionally, kickbacks are legal in many states, creating a massive "gray area" where aggressive business practices can easily cross into potentially fraudulent territory without clear legal boundaries. Tom emphasizes that without strong laws and consistent enforcement, such practices will only escalate. While some cities have considered establishing their own public towing operations to eliminate private predatory practices, this is rare due to the significant costs and logistical challenges involved. Tom's primary advice for car owners is to avoid getting towed in the first place by paying close attention to parking signs, especially in private lots, as spotters may be watching. If a car is already hooked, he advises paying the "drop fee" immediately and attempting to negotiate the price down. He stresses the importance of retrieving the car promptly to avoid accumulating storage fees and the risk of the car being sold. In conclusion, the episode reveals that the seemingly inexplicable disappearance of Kelly's car is a common occurrence stemming from a largely unregulated industry. Towing companies often have contracts with private businesses, employ spotters to identify illegally parked cars, and then engage in opaque fee negotiations, all within a legal framework that varies widely by state and often lacks sufficient consumer protections. The solution, it seems, lies in stronger regulations and proactive enforcement to prevent these aggressive and often exploitative practices.