Indiana to Combat Predatory Towing with New Law Starting July 1, 2025
Indiana is set to implement significant reforms to its towing industry with the enactment of House Enrolled Act 1390, effective July 1, 2025. This legislation aims to address widespread concerns over predatory towing practices, particularly those affecting commercial carriers and individual drivers.citizenportal.ai+4Indiana Capital Chronicle+4The US Sun+4InkFreeNews.com+4The US Sun+4Indiana Capital Chronicle+4
Key Provisions of the New Law
1. Fee Transparency and Cap
The law mandates that towing companies provide itemized invoices detailing all charges, including service descriptions and timeframes. Hidden fees are prohibited, and towing companies must adhere to preset rates when working with law enforcement. Additionally, storage fees charged by towing companies are now limited. The US Sun+1citizenportal.ai+1LegiScan+3Indiana Capital Chronicle+3The US Sun+3
2. Vehicle Release Upon Partial Payment
Under the new regulations, towing companies are required to release vehicles to owners or lienholders within 24 hours of receiving 70% of the charged amount, provided a complaint has been filed with the towing complaint advisory board. This provision aims to alleviate the financial burden on individuals who find themselves in distressing situations, often with little recourse against high fees. Indiana Capital Chronicle+4citizenportal.ai+4The US Sun+4
3. Establishment of Towing Complaint Advisory Board
A seven-person, governor-appointed panel will be responsible for reviewing complaints related to excessive charges. The Indiana attorney general will create a towing complaint form, and consumers can challenge fees exceeding $1,000 for smaller vehicles and $20,000 for large ones. The board will determine the fairness of charges, with the attorney general’s office overseeing any payment remittance. Indiana Capital Chronicle+6Indiana Capital Chronicle+6The US Sun+6
4. Prohibition of Unauthorized Kickbacks
The law outlaws unauthorized kickbacks for towing referrals, aiming to eliminate conflicts of interest and ensure that towing companies are selected based on merit and not financial incentives. The US Sun
5. Enhanced Identification and Accountability
Towing companies are now required to display their business name, city of domicile, and Department of Transportation identification number prominently on their vehicles. This measure is intended to foster accountability and ensure that law enforcement can easily identify towing operators, thereby enhancing public safety. citizenportal.ai
Industry Reactions and Future Implications
The legislation has garnered support from consumer protection organizations and the Indiana Motor Truck Association, who view it as a necessary intervention against exploitative towing practices. However, some towing industry leaders have expressed concerns about the potential financial strain the new regulations may impose, particularly on smaller operators. They argue that the changes could limit their ability to set competitive rates. The US Sun+1Indiana Capital Chronicle+1citizenportal.aicitizenportal.ai
As the effective date approaches, both consumers and towing companies are encouraged to familiarize themselves with the new regulations to ensure compliance and to protect their rights. The implementation of these reforms is expected to create a more transparent and fair towing environment in Indiana.citizenportal.ai+1citizenportal
