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State Legislatures Take Aim at Predatory Towing Practices

New bills in five states target excessive fees and nonconsensual towing abuses, potentially changing the landscape for owner-operators.

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JEFFERSON CITY, Mo. — Legislators across five states are advancing new bills designed to curb predatory towing and provide a path for recourse for professional drivers subjected to exorbitant, nonconsensual impound fees. Missouri, Arkansas, North Carolina, Illinois, and Pennsylvania are all currently reviewing legislative packages that threaten to strip bad-actor towing companies of their licenses and impose strict caps on billing practices that have historically crippled independent trucking businesses.

Predatory towing remains a persistent issue for the average OTR truck driver, as many operators find themselves stranded with thousands of dollars in bogus charges after a breakdown or minor accident. The Owner-Operator Independent Drivers Association (OOIDA) continues to lobby for these state-level reforms, arguing that current systems lack transparency and leave owner-operators with no viable way to dispute excessive invoices. Without federal oversight, drivers have been left to fight individual towing companies in local courts, a process that is often too expensive and time-consuming for those trying to maintain tight delivery schedules.

Missouri’s HB745, sponsored by Rep. Dave Griffith, aims to establish a formal Towing and Recovery Review Board that includes direct representation for the trucking industry. This bill would prohibit per-pound pricing for nonconsensual tows and allow drivers to choose their preferred towing service in many instances. Meanwhile, Arkansas is pushing HB1897, which would allow drivers to recover their cargo by paying 35% of its value upfront, ensuring that freight can still reach its destination while the financial dispute remains under review. Illinois is taking a more aggressive approach with SB2040, targeting companies that attempt to dodge penalties by cycling through different business names, with proposed punishments including impoundment of tow trucks and three-year licensing bans.

What This Means for Drivers

These legislative shifts could fundamentally change the financial risks associated with roadside breakdowns for a CDL-A driver. By mandating standard hourly price lists and creating oversight boards, states are attempting to remove the guesswork and extortion often present at the scene of an accident. If these bills pass, owner-operators will gain the legal standing to challenge predatory invoices before their equipment is held hostage, preserving their bottom line and their ability to stay on the road.

Industry Reaction

Advocates like Lewie Pugh of OOIDA emphasize that these fees are not just inconveniences but are often fatal to small-business operations. Industry leaders argue that while ethical towing companies provide a necessary service, the current lack of regulation allows a small percentage of firms to prey on those who have no leverage. As more trucking companies are hiring and the demand for reliable freight movement increases, lawmakers are finally acknowledging that the current towing environment is unsustainable for the national supply chain.

Key Points

  • Missouri’s HB745 would ban per-pound pricing and create a review board for tow disputes.
  • Arkansas legislation allows cargo recovery for 35% of its value, keeping freight moving during financial conflicts.
  • North Carolina is considering a ban on vehicle booting for commercial trucks and requiring standard hourly price lists.
  • Illinois SB2040 seeks to prevent bad actors from evading fines by closing loopholes in business licensing.

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Photo by Connor Scott McManus on Pexels

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Ray Kowalski
Veteran OTR driver turned industry writer. Ray logged over 1.5 million miles across 48 states before trading the cab for the keyboard. He covers FMCSA regulations, hours of service, and anything that affects a driver's logbook.