States allow cash 'kickbacks' for people who report cars for towing, watchdog group says

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If more states don't pass a ban, tow companies will likely continue their 'predatory towing' practices, the U.S. Public Interest Research Group said.

By Khristopher J. BrooksTow truck companies are slipping money under the table to people who report illegally parked cars, creating incentives for abuse, according to aCalifornia, Texas and 14 other states have legislation that prohibit so-called"kickbacks" from towing companies, according to a report from the U.S. Public Interest Research Group released Wednesday. The nonprofit is calling for the remaining 34 states — including Arizona, Louisiana and Ohio — to pass similar measures.

"You're having cars being towed that really aren't causing an issue," Teresa Murray, a PIRG consumer watchdog, told CBS MoneyWatch."But whenever you have an incentive to call a tow company, then bad things happen." But some companies could be abusing their power, Murray said. She said PIRG has received complaints from drivers that some tow companies haul away vehicles for minor offenses, like low air in tires.

"A lot of cases we hear about are someone just in a parking space for five minutes," she said."They're just preying on people."

 

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