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TO: Christopher J. Curtis, Director, Consumer Assistance Program
FROM: Barbara Rachelson, State Representative, Chittenden 14
RE: RECOMMENDATIONS TO THE TOWING PRACTICES REPORT
DATE: 1/15/24
Thank you for your work on towing practices in Vermont. While I was unable to be at the public
hearing due to a family emergency, I wanted to submit my written comments to you.
First, let me state that I strongly believe that towing is an important service that we as
Vermonters need and rely on every day. I am not looking to do anything to disparage the
importance of towing, and the risks that towers take to provide services to us.
For the most part, there is nothing that the current towing companies are doing that is illegal,
which is why it’s so critical that Vermont make some desperately needed changes to these laws in
order to provide some checks and balances, oversight, and consumer protections.
Together, the lack of regulation and the ability to permanently take a person’s car and contents
can create a nightmare for consumers. Ever since this issue was brought to my attention a decade
ago, I continue to hear from both constituents and people from around the state that have been
consumer victims of the failure of our state to put protections in place.
The Vermont Department of Motor Vehicles turns over about 10-12 titles a week to tow
companies who fill out the forms and due to our problematic laws, legally are able take
possession of the towed car and all the contents AND keep the proceeds. All of the proceeds. No
legal oversight, or any oversight. These laws have a perverse incentive for towing companies that
is both legal and awful at the same time. This practice is truly a form of forfeiture that has no
regulation or oversight, few rules, and no opportunity for an owner to protest or appeal the
process. Each year, many Vermonters lose their cars to the towers through this process. Our
current laws allow towers to apply to the DMV to take over the title of many cars that have been
towed but are not “abandoned” (or not abandoned willingly) but become the only option for
people who cannot pay the unregulated towing and storage charges. Our current laws on towing
have extremely negative consequences, especially for people with limited incomes and is a
concerning business model (even though it’s legal).
Vermont has no laws to stop what is known in the industry as “predatory towing.”
Superpages.com gives this definition:
“The term predatory towing refers to arrangements some towing companies make with
private property owners (often those who have parking lots) to tow vehicles off their
property as quickly as possible. Once the car is towed, it’s taken to the towing company’s
lot, and the owner of the vehicle must pay for the towing, the storage, and often other fees
as well. Obviously, the towing company makes more money when they tow more cars.
This is why they sometimes employ spotters to call the instant they see a parking
violation—which means you might run into a store for a quick item and find your car
gone when you get back. These spotters sometimes watch which lot a driver park in and
then verify that the person goes into that particular business. If not, it’s a quick call to the
towing company and a big headache for the driver.”While at least 14 states and dozens of
municipalities (in other states) have regulated this industry, Vermont has not done so,
leaving consumers very vulnerable to our current towing laws and lack of regulation.