Michael Medved is just one of dozens of New Yorkers who have been victims of a towing scam by Clutch Towing in Brooklyn (1), a company that is still registered in New York City, even though the company, along with Five J’s Automotive, settled with the city last year over overcharging customers for its services.
Medved described CBS News and Brooklyn 12 News (2) how his car disappeared one day. He left his apartment and couldn’t find his red 2025 Hyundai. Medved called the police, but they had “no idea” where his car was.
After weeks of searching and filing a stolen vehicle claim with her insurance, she received a call in mid-February from Clutch Towing, the company that had taken her car on January 2. Now, you have to pay $1,660 for towing and storage costs.
New York City’s 311 portal and social media pages have posts about the company from January of this year, saying: “Clutch Towing overcharged New Yorkers for vehicle towing and storage. Are you one of them? We’re helping people get their money back!”
Despite this, New York City Department of Consumer and Worker Protection (DCWP) Commissioner Sam Levine (3) said CBS News that “if companies agree through an agreement to return to compliance with the law, that is something we will often consider.”
“But I want to be clear: If companies agree to follow the law, they must follow it.”
Here’s what you need to know about towing scams and the predatory operating practices of towing companies, plus tips on how to protect yourself and what to do if you’re targeted.
Brooklyn 12 News reports that the city has protocols for towing companies that should prevent lost car problems like Medved’s. By law, police must issue a ticket for any car on a public road, and the ticket must be on the car before a towing company can take it away. And within 30 minutes of towing the car, they must register everything at the local police station.
The thing is, Medved’s car was not registered with the NYPD, and CBS News reported that an NYPD spokesperson “said they could not find any record of the NYPD ordering Medved’s car to be towed.”
Both C.B.S. and Brooklyn 12 News spoke to other New Yorkers who claimed the company overcharged them, didn’t provide them with a receipt, and refused to accept credit cards, all of which the DCWP warns residents about.
Towing Service Hub also warns drivers that “cash only” towing services are a deliberate scam tactic (4). “Requiring cash eliminates your ability to dispute charges through your bank,” they write.
Despite the current problems, the DCWP insists that its first priority is protecting New Yorkers from being scammed. “We reserve all rights, including full license revocation, to ensure New Yorkers are not scammed again,” Levine said. CBS News.
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The National Crime Insurance Bureau (NCIB) found an 89% increase nationwide in predatory towing claims between 2022 and 2024, affecting both large cities and rural areas (5). But the methods employed by these New York companies are just some of the tactics that shady towing companies use to defraud customers whose vehicles are towed around the city. Forbes It also warns drivers that these companies may use a series of additional and unnecessary fees to increase prices (6). These may include:
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Entry fees or release fees, for the towing company employee to deliver your car. Forbes warns that these fees are illegal in many states.
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Inflated rates that are above industry standard. Many states also have limits on towing fees, and you can get your insurance company involved if you suspect you were overcharged.
The trade publication Tow Industry Week warns legitimate towing companies that their businesses are getting a bad name because of these bad apples in the industry (7). Another common scheme involves tow trucks showing up unsolicited after a car crash or accident, and the employee claims to be from the driver’s insurance company.
“For drivers who aren’t sure what to do after a collision, that confusion can make them easy targets for unscrupulous towing practices, sometimes leaving them with bills that run into the thousands of dollars,” according to Tow Industry Week.
The NCIB offers a number of tips to drivers to help them avoid becoming victims of a towing scam (8). Some of the top ways to avoid being scammed include:
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Only deal with a towing company that you or the police personally contact after an accident.
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If you call to order a tow truck, take the time to make sure the signage and company name are the same as what you ordered.
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Do not give a tow truck operator your insurance information or the lien holder’s personal information.
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Request a printed list of all charges for your services and printed documentation of where the vehicle will be stored.
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If your car is towed, request an Authorization to Tow form and a receipt.
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The DCWP warns that some companies may try to charge additional fees for repairs, so be sure not to accidentally accept these services.
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Keep a record of all documents related to your towing and never sign blank forms from the towing company.
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In New York, DCWP-licensed towing companies must accept a credit card for payment by law. Check your local towing laws before accepting a cash-only payment.
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CBS News (1); Brooklyn News 12 (2); Department of Consumer and Worker Protection (3); Trailer Service Center (4); National Crime Insurance Office (5, 8); Forbes (6); Towing Industry Week (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
