Des Moines Towing Industry Faces Allegations of Predatory Practices Amid Calls for Regulation
The lack of regulation in Des Moines’ competitive towing industry has led to accusations of unethical practices and garnered attention from state and city lawmakers, according to an Axios investigation.
Why It Matters
Iowa ranks among the states with the least protections against predatory towing practices, including rate limits, according to the U.S. Public Interest Research Group, a nonprofit advocacy organization.
Allegations Against Crow Tow
Former employees of Crow Tow, the metro’s largest towing company, have alleged unethical practices incentivized by the company’s bonus structure. These claims surfaced in court documents and interviews connected to a recently settled lawsuit.
- Key Accusations:
- Drivers allegedly prioritize “nonconsensual” tows from private lots due to higher bonuses.
- Vehicles were reportedly hidden temporarily to maximize impound numbers.
- Discretion was employed to prevent vehicle owners from addressing violations before towing.
- Instances of using tools like “Slim Jims” to remove parking stickers were also alleged.
Crow Tow’s owners deny any wrongdoing, stating the incentives are meant to reward professional behavior.
Legal and Industry Context
Crow Tow’s practices came under scrutiny through a 2022 lawsuit filed by Melissa Quiroz, who alleged the company’s methods escalated tensions that contributed to her being struck by a car during an incident. While not directly caused by Crow Tow employees, the case highlighted allegations of predatory towing practices.
Court records reveal that the company offers drivers bonuses, such as $30 per vehicle towed from private lots, contributing to its competitive edge. Crow Tow impounded 20,000 to 25,000 vehicles in 2022, though the proportion of “nonconsensual” tows remains unclear.
Broader Industry Competition
Competition among towing companies nationwide has intensified. In some areas, tow operators race to accident scenes and charge exorbitant fees, sometimes exceeding $10,000. Although such practices are not reported in Des Moines, experts argue that tighter regulations are needed to protect consumers and curb rising insurance costs.
Legislative Push for Reform
State lawmakers introduced a bill in 2023 to strengthen towing regulations in Iowa. Proposals included:
- Allowing vehicle owners to retrieve personal items from impounded cars without full payment.
- Requiring companies to post visible rates and provide itemized billing.
- Mandating the release of vehicles at no cost if owners arrive before the tow is completed.
The bill, supported by bipartisan sponsors, is expected to be reintroduced next year. Des Moines city officials are also considering measures like standardizing towing signage to provide clearer information for vehicle owners.
National Momentum for Regulation
Efforts to regulate towing practices are gaining traction across the U.S.:
- Michigan lawmakers proposed licensing requirements and rate disclosures for towing companies.
- Mississippi recently implemented maximum towing rates.
- Illinois is enacting a law to eliminate storage fees on stolen vehicles, addressing issues similar to those in Des Moines.
Industry Response
Crow Tow has expressed support for standardized signage but opposed the state’s 2023 reform bill. The company maintains that its practices are ethical and necessary to ensure parking availability and protect property rights.