The trucking industry plays a vital role in the economy, transporting goods and materials across the country. However, with this responsibility comes various challenges, including unfair practices and fees imposed on truckers by unscrupulous towing companies.

This issue has caught the attention of the Federal Motor Carrier Safety Administration (FMCSA), resulting in their stand against sham towing fees targeting truckers. In recent years, there has been an increase in reports of truckers being charged exorbitant towing fees for minor violations or even for simply parking in designated areas.

These fees not only add to the already high cost of operating a truck, but they also create financial burden and hardship for drivers. The FMCSA recognizes the impact of these unjust fees on the trucking industry and has taken a firm stance to protect the rights of truckers.

In this article, we will delve deeper into FMCSA's position on sham towing fees and understand the measures being taken to address this issue.

A Proposed Rule

The Federal Motor Carrier Safety Administration (FMCSA) has expressed its concern regarding a proposed rule designed to combat deceptive fees imposed on consumers. The rule, which was issued by the Federal Trade Commission (FTC), aims to empower the FTC to impose penalties on fraudsters and provide financial remedies for affected consumers.

The FMCSA has specifically highlighted the unethical practices of towing companies that unjustly overcharge truck drivers who require assistance, particularly after being involved in accidents. According to FMCSA Acting Deputy Administrator Sue Lawless, such predatory towing not only harms consumers, including commercial motor vehicle drivers and trucking companies, but also has a negative impact on the overall health of the trucking industry.

The Need to Eliminate

Therefore, she emphasizes the need to eliminate excessive rates, surcharges, and unfair fees associated with predatory towing.

In her comments submitted to the FTC, Lawless identifies various potentially unfair or deceptive fee practices employed by predatory towers. These include concealing fees until the completion of the job, charging for unnecessary or worthless services, and imposing an excessive number of fees for significant amounts. These practices can result in thousands of dollars being charged to truck owners and operators.

Lawless further highlights the vulnerability of truck owners and operators once their vehicles have been towed, as they become highly susceptible to exploitation. Predatory towing companies often take advantage of their control over the vehicle to engage in price gouging and prey upon drivers who lack the ability to resist.

Through its stance on this proposed rule, the FMCSA aims to raise awareness of the detrimental impact of predatory towing and support efforts to combat unfair fee practices in the towing industry.

A Recent Study

According to a recent study conducted by the American Transportation Research Institute (ATRI), the majority of motor carriers surveyed have experienced predatory towing practices in the form of excessive rates and unwarranted additional service charges. Specifically, 82.7% of carriers reported excessive rates, while 81.8% encountered additional charges that were deemed unnecessary.

Furthermore, the study revealed that nearly 30% of invoices examined included either excessive rates or additional charges. Half of these cases involved inflated rates for equipment, labor, or storage, while the other half involved excessive miscellaneous or administrative fees.

Recognizing the detrimental impact of these practices on consumers, the Federal Motor Carrier Safety Administration (FMCSA) strongly supports the implementation of prohibitions or restrictions on excessive fee practices. They emphasized the importance of protecting consumers who lack the ability to avoid, negotiate, anticipate, or limit these fees, particularly those who are vulnerable or facing challenging circumstances.

A Separate Violation

To effectively address this issue, the FMCSA proposed that each illegal fee be treated as a separate violation. They also recommended that companies be explicitly prohibited from charging or collecting fees that are not properly disclosed, included in the total price, or cannot be accurately calculated upfront.

Considering the interstate nature of truck driving, the FMCSA also requested guidance from the Federal Trade Commission (FTC) on how the proposed regulation would interact with various state and local laws governing fees in the towing industry. This guidance would help ensure consistency and clarity across different jurisdictions.

In summary, the ATRI study highlights the prevalence of predatory towing practices involving excessive rates and unwarranted additional charges. The FMCSA strongly advocates for regulations that protect consumers from these unfair practices, proposing separate violations for each illegal fee and clear guidelines on proper fee disclosure. Collaboration with the FTC is also sought to address potential conflicts with state and local laws.

In Conclusion

It is important for truckers to be aware of the FMCSA's stance against sham towing fees and to protect themselves from being targeted by these unfair practices. By understanding the regulations and reporting any suspicious activity to the FMCSA, truckers can help prevent these fees from draining their hard-earned income.

It is crucial for the industry to stand together against these predatory tactics and ensure fair treatment for all truckers. With continued awareness and action, we can work towards a more transparent and equitable trucking industry.

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