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Predatory Towing on the Rise in Downtown Birmingham

Natalie Beckerink • Jun 27, 2023

Parking in downtown Birmingham has become a city-wide issue with residents and visitors alike complaining of predatory towing. (See AL.com: "Predatory towing in Birmingham prompts outraged resident to unite on Facebook" and "Hey-where's my car? Towing in downtown Birmingham can sometimes result in frightening encounters and online fury").


Predatory towing refers to a variety of practices, primarily by tow truck operators, which take advantage of drivers to make an exorbitant profit. These practices may include unnecessary towing, overcharging, violation of local towing regulations, and other unsavory tactics.


These practices have seen widespread condemnation due to their unethical nature and the financial harm they inflict on innocent drivers. Many states and cities have implemented regulations to prevent predatory towing, but enforcement can be problematic, and the practice remains a pervasive issue.


The predatory towing industry typically operates by capitalizing on small legal infractions, like parking in a spot for longer than allowed or accidentally parking in a private lot. Unscrupulous towing companies often have arrangements with property owners to monitor such lots and remove vehicles at the slightest infraction. Once a vehicle is towed, the owner must pay substantial fees to retrieve it. These companies often add on additional, often hidden, fees, making the situation even more expensive for the car owner.


One of the main problems that drivers have with the towing companies in Birmingham is that they have the final and only say. Once someone’s car is taken away, there is not much of a choice but to pay the fine. Fines are not cheap either – one person who had her car towed said she had to pay $160 just for parking in a spot for ten minutes. Another said that it cost $200 to get his car back after forgetting to update the car he was using on a parking meter app.


The City of Birmingham hosted a town hall meeting at the beginning of June to discuss possible solutions to these reoccurring issues. Though City leaders were slightly cautions about over-regulating paid parking lots, they did throw around some possible solutions, such as requiring companies to create clear signage listing customer expectations.


Additionally, the Birmingham Parking Authority has been working on a strategic plan to improve parking downtown. They have been incorporating feedback from community members through community focus meetings. A towing ordinance is currently in the process of being written. Once it is complete and sent to committee, it will be recommended to the full city council.


Other cities and states have enacted a variety of laws to put a stop to some of the more troublesome aspects of predatory towing. Some jurisdictions require that tow truck operators take photographs to verify the infraction before towing, or mandate that the towing company must notify the police department about the tow. If these steps aren't taken, the tow could be considered illegal.


Another issue arises from excessive fees. Many jurisdictions have maximum rates that tow companies can charge, but predatory towers often ignore these regulations, charging much higher rates. If a vehicle owner can prove that they were overcharged, they may be able to take legal action against the towing company.


Towing companies may also engage in "patrol towing" or "spotters," where tow trucks patrol areas looking for vehicles to tow or have individuals reporting any infractions. Some jurisdictions have outlawed these practices due to their potential for abuse, considering them a form of predatory towing.


Furthermore, a serious issue arises when tow companies do not provide adequate notice or signage about potential towing in parking lots. If the signage isn't correctly installed or sufficiently clear in some jurisdictions, the tow may be considered illegal.


Some tow companies exploit state lien laws, which allow them to auction vehicles if the towing and storage fees aren't paid within a specific time. Unethical companies may not make a reasonable effort to notify the vehicle owner about the impending auction, hoping to make a significant profit selling the vehicle.


Consumers in many jurisdictions often have legal recourses against predatory towing. They can sue the towing company for engaging in illegal practices. If a class action is filed, and the court finds the tow company's practices to be systematically predatory, the company may be hit with significant financial penalties.


Many states also have enacted "towing bill of rights" that provides legal protections to vehicle owners. These often include regulations on pricing, requirements for photographic evidence of parking violations, requirements for proper signage, and a prohibition on rewards for reporting illegally parked vehicles. Moreover, if a towing company engages in fraudulent practices, such as lying about the fees or the reason for the tow, they can be prosecuted under consumer fraud statutes. 


While predatory towing remains a significant issue in many cities like Birmingham, there are an increasing number of jurisdictions that are improving the legal protections against such practices. Hopefully Birmingham city leaders are able to soon able to follow suit.


In the meantime, understanding the parking rules and regulations can help drivers protect themselves from becoming victims. Drivers should always try to park legally, pay attention to signage, carefully review all parking payment system and parking app instructions, and generally be aware of the threat of predatory towing in downtown Birmingham. If you think you have been the victim of predatory towing, it may be beneficial to consult with a legal professional to understand your rights and potential remedies.

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