$240 For A Car Tow? -- Companies Aren't Pulling Your Leg, Just Your Vehicle

When King County Superior Court Judge LeRoy McCullough finished worshiping at a Central Area church one Sunday last year, he and other parishioners were surprised to discover their cars had been towed from a private parking lot.

But a much bigger surprise awaited them, courtesy of Lang Towing. It would cost $155 each to retrieve their cars: a $120 towing fee and a special $35 "after hours" surcharge.

Welcome to the world of private impoundments, where there's no limit on what tow-truck operators can charge.

Depending on the time of day and where you park, you can pay as little as $34.50 or as much as $240 to recover your towed car in Seattle.

The low price applies to cars towed at the request of the Seattle Police Department under a new contract between the city and Lincoln Towing.

The high price reflects the rate filed with the state for private tows by Seattle Central Towing. The owner says the actual rate charged for private tows is $120 because it takes 30 minutes. But she could charge $240 if it took an hour. "Basically, they can charge whatever they want," said Guy Baker, an investigator with the state Department of Licensing.

Most Seattle towing companies have filed hourly rates in the $100-$200 range for private tows and impoundments. They may change rates anytime.

The only limit is what operators file with the state. The state doesn't regulate such rates.

Tow-truck operators don't see a need for regulation because they believe their rates are fair and reflect their costs.

But a state trooper familiar with the towing industry disagrees.

"I don't see any reason why a towing company has to charge $125 to do an impoundment of a car from a private parking lot that takes them no more than half an hour," said Trooper Bill Hamilton, who has responsibility for inspecting about 310 trucks operated by roughly 72 tow companies in King County. He noted the State Patrol gets none of the fee.

"I'd venture to say you'll find that every tow company out there is sticking it to the public," Hamilton said. "Internally, we call raping the public.

"That's definitely something that's a concern of ours, as well as the Legislature, who should be reviewing this. There has to be some control over that."

Rep. Michael Heavey, D-Seattle, introduced a measure a few years ago that would have put a $50 cap on towing fees. It didn't get very far, and no action has been taken since.

But there is one current bill, backed by tow-truck operators, that would prevent the state Department of Licensing from issuing or renewing a driver's license if the applicant owes money for towing and storage.

While the public may abhor private towing fees, tow-truck operators and industry lobbyists take a different view. They contend:

-- Tow-truck operators seldom charge the maximum rates on file with the state.

-- The rates they charge are justified by overhead. That includes the cost of real estate to park and store cars, insurance, employees, a significant number of worthless and abandoned "junkers" which get auctioned at a loss, purchase and maintenance of equipment, damage complaints, court appearances and paperwork.

-- As an industry, tow-truckers have contributed to the state treasury by turning over hundreds of thousands of dollars in surplus funds - the difference between what they collect at auctions to cover their bills and what the vehicles sold for.

-- Motorists whose cars are towed and impounded are often abusive and have violated the rights of private property owners.

Jim Crenna, owner of Columbia Towing and Totem Towing, said he doesn't operate this way but he knows of some owners who set prices according to a motorist's attitude.

"If a guy is going to be a real jerk and he's going to threaten and start kicking your doors," Crenna said, the prices will go up.

Of the numerous tow-truck operators contacted, most said they were aware of a few "predator"-type operators who abused the public. Each denied operating that way.

The kind of wide-open fee structure that applies to private tows also used to apply to those ordered by the State Patrol.

That changed a couple of years ago. Following a $15,000 study by an accounting firm to establish costs, a ceiling rate of $75 an hour was set for cars towed and impounded at the Patrol's request.

Since then, complaints from the public regarding Patrol-ordered impounds "have dropped off immeasurably," according to Capt. LaVere Klewin of the Patrol.

By contrast, Seattle District Court sees a steady stream of irate motorists - about eight to 10 a week - requesting hearings to contest private impounds, court administrators say. Tow-truck operators win most of the time, but not always.

Last January, for example, Seattle Towmasters impounded a car belonging to Jim LaLonde, a claims adjustor for Farmers Insurance.

Under the law, before tow-truck companies may impound vehicles, they must post conspicuous signs near each lot entrance.

LaLonde and another motorist who challenged the tows went to court and presented photographs showing no signs were posted when the cars were towed, and that brand-new signs appeared afterward. The judge ruled the tows improper and ordered Towmasters to pay back the $162 it charged LaLonde and $179 to the other motorist.

The parishioners who got towed last year went to court, too. All but Judge McCullough won reimbursement from Lang after convincing a judge they had permission to park where they did.

McCullough didn't press his claim, he said recently, because of his position and desire to avoid potential appearance problems.

Under new three-year contracts with the city, area tow companies charge between $34.50 and $48.50 for SPD-ordered tows and impounds, depending on the contract they got based on a bidding process. The companies can add $25 more if dollies are used; storage is free for the first 24 hours.

Rolfe Johnson, owner of Road Runner Towing and former president of the Washington Tow Truck Association, explained the supply-demand dynamics of the towing industry this way:

His private hourly rate of $75 is the same as the State Patrol rate, which allows a 10 percent profit.

The low end of the market involves motor-club calls for which the average tow-truck operator gets about $20 per job, Johnson said. The operator makes up for that somewhere else, including private impounds and insurance-company accidents, he said.

Davor Gjurasic, sales and marketing manager for Lincoln Towing, the largest-volume operator in the state, said Lincoln filed relatively low private rates of $95 an hour in part because "some of those people that we're impounding are possibly future customers who might call when they need a tow."

Why are tow companies willing to charge less for public tows than private ones?

Maggie LeMoine, owner of Seattle Central Towing, said she could afford to bid low rates for the city contract because of the volume and because she's guaranteed payment.

That guarantee may change, however, as the city considers doing away with a promissory-note system that has left it on the financial hook when motorists fail to appear at hearings to contest SPD-ordered impounds. ------------------------------------------------------------

Tow rights While state law does not regulate what tow-truck operators may charge for private tows and impoundments, it does offer some protection for consumers, including:

-- No one may legally tow and impound your vehicle unless conspicuous signs are posted near each parking-lot entrance.

-- The person requesting a private impound must provide a signed authorization at the time and place of the impound to the state-registered tow-truck operator. Such tow-truck operators, or their agents, may not sign such an authorization on behalf of the property owner, nor may they identify vehicles for impound independent of the property owner.

-- At the time of impoundment, tow-truck operators must immediately notify local police, who maintain logs of such reports. Tow-truck operators must notify the last known registered and legal owners of the vehicle by first-class mail within 24 hours of impoundment.

-- The registered tow-truck operator must accept commercially reasonable tender, including checks from in-state banks if accompanied by two pieces of valid identification, one of which may be required to have a photograph.

-- At the time someone redeems his or her vehicle, the tow-truck operator must provide a form to be used for requesting a court hearing, written notice of the name of the person or agency authorizing the impound and a copy of the towing and storage invoice. ------------------------------------------------------------ Hourly tow rates ------------------------------------------------------------ Tow company City of Seattle State Patrol Private Lincoln $34.50 $75 $95 . Columbia $48.50 - $180 # . Seattle Central $44 - $240 # .

# Columbia says its actual private rate is $95, and Seattle Central says its is $120, even though the rates above are on file with the state Department of Licensing.