Florida lawmakers zone in on “predatory” towing practices

Predatory towers in Florida have created challenges for drivers and insurers, with organizations just like the National Insurance Crime Bureau (NICB) trying to collaborate with state lawmakers to enact essential modifications, evident within the current sponsoring of HB 179.

This House Bill, which has gained assist from State Representative Melony Bell, is trying to handle “loopholes being exploited by predatory towers” which have allowed unhealthy religion actors to proceed profiting from civilians and insurers alike, Eric De Campos, director of technique, coverage and authorities affairs on the NICB, instructed Insurance Business.

The downside, although not a brand new one, has change into exacerbated lately.

“Predatory towers have been around since tow trucks were invented, but the issue has gotten worse over the past decade,” De Campos mentioned.

Recognizing Florida’s towing authorized loopholes

In circumstances, people have reported difficulty when going to pay their Bills, with fee choices restricted to money or excluding bank cards or cell gadget transactions.

Towing corporations and professionals have additionally been in a position to value gouge as direct results of legal guidelines and authorized loopholes to defraud each clients and insurers, based on De Campos.

Florida statutes don’t comprise legal guidelines establishing a state-wide charge schedule for nonconsensual tows, for instance, when a person will get into an accident on the freeway.

“This responsibility is given to counties and municipalities,” De Campos mentioned. “However, not all local jurisdictions have established maximum rate schedules, thereby allowing predatory towers to charge exorbitant fees, even for towing a car two miles down the road.”

Another manner that towers have been in a position cost excessive costs is because of the imprecise wording round what constitutes a hazmat cleanup.

“The typical idea of a hazmat cleanup involves removing massive chemical spills that pose a serious risk to entire communities,” De Campos mentioned. “However, the lack of clear laws defining hazmat cleanups involving nonconsensual tows allows these bad actors to charge thousands of dollars to apply absorbents, such a kitty litter, onto a little bit of spilled gasoline or some other engine fluid and sweep it up with a broom.”

Bad religion actors have resorted to utilizing heavy gear to wash up small ounces of spillage, which drives up the price of companies that carriers must pay.

“These practices lead to inflated tow bills, where we have seen five and six figure tows that insurers are required to pay,” De Campos mentioned.

“If the insurer tries contest those fees or attempts to negotiate with the tower, the tower can hold the vehicle hostage until they receive payment while continuing to rack up storage fees.”

Towers have additionally been accused of inserting indicators in hard-to-spot areas, or failing to speak penalties of parking in sure areas.

Bill HB 179 appears to chop down “predatory” practices from unhealthy actor towers

Under HB 179, the strategies of fee towers should settle for would come with bank cards and cell gadget funds.

This would permit house owners most flexibility to pay their payments and make sure the launch of their automobiles, notably when some “may not have access to cash”, based on De Campos.

The Bill would additionally set up cheap pricing and reduce down the seven-day window that towers at the moment must notify house owners their automobile has been towed.

“These measures will not only help prevent insurance fraud, but also provide critical consumer protections for Floridians,” Decampos mentioned.

Staged vehicular accidents an extra concern in Florida

In addition to towing practices, the rising charge of staged vehicular accidents can be a rising concern for Florida’s motorists.

“Criminal organizations are intentionally staging vehicle accidents, often time by recruiting or coercing vulnerable individuals to take part in these schemes, in order to file inflated medical claims to insurance companies,” De Campos mentioned.

This phenomenon can be gaining priority in South Carolina, the place Insurance Business not too long ago reported that’s has change into the highest insurance coverage fraud difficulty within the state.

“The impact on residents includes both a financial cost and a safety risk. Residents are not only faced with the costs of the damage done to their vehicles, but also risk serious injury and possible death as a result of vehicle accidents deliberately caused by fraudsters,” De Campos mentioned.

The NICB believes that elevating the minimal prison penalties for insurance coverage fraud could also be a solution to deter unhealthy religion actors from offending.