FTC May Target Predatory Towing Companies
In a recent public-comment session sponsored by the U.S. Department of Transportation (DOT), tow company operators pushed back against what they termed DOT’s overly simplistic view of which fees and charges are or are not predatory. The Towing and Recovery Association of America (TRAA) disputed the recently released American Transportation Research Institute’s (ATRI) report on predatory towing, saying ATRI relied too heavily on input from “aggrieved operators.” ATRI, they said, also failed to distinguish between excess fees agreed upon by the company whose trucks are being towed (consensual) and “nonconsensual” tows.
TRAA also contended that DOT’s attack on towing fees fails to account for the complexity of some towing jobs, especially those that are in response to a crash or other emergency.
TRAA urged FMCSA to conduct its own research into “improper billing” even though the agency has publicly stated that it believes the correct approach is through the Federal Trade Commission (FTC), which is engaged in a “junk fees” rulemaking process. A representative from a coalition of towing companies took particular aim at truckers’ failure to carry adequate towing insurance or who have none at all. Truckers commonly have a $2,500 towing limit which doesn’t take into account that towing heavy-duty trucks requires heavy tow trucks that are expensive to operate.
ICSA is closely monitoring the issue and will keep its members informed.
Every year, TAT (formerly called Truckers Against Trafficking) honors a member of the trucking, bus or energy industry, whose direct actions help save or improve the lives of those exploited or prevent human trafficking from taking place, with the Harriet Tubman Award
Bob Costello has indicated that the freight market has improved – but very slowly – since January. It must be said that ATA’s indices are dominated by contract freight as opposed to spot rates.
Now, however, with Republican control of both houses of Congress and the White House (and, some say, the Supreme Court) I am optimistic that trucking will get a fairer shake than it has during Biden’s term in office.