Alberta introduces fines, jail time for predatory towing practices

Steep fines and jail time are on the way for towing companies taking advantage of drivers after an accident.

Harsher penalties — including steep fines and jail time — are arriving in Alberta as the province tries to curb predatory towing practices.

Updates to the Consumer Protection Act will soon mean violators could face fines ranging from $100,000 to $300,000, or up to two years behind bars.

The new rules will be in effect as of April 1.

• The information you need to know, sent directly to you: Download the CTV News App

They come as an increasing number of tow truck drivers take advantage of Calgarians in a tricky spot.

CTV News has spoken with multiple drivers who have faced exorbitant fees for simple jobs — including one family that had their car held at an impound lot until they paid their $2,500 bill.

Violators often show up to crash scenes before even emergency crews can respond.

They’ll oftentimes use aggressive, pressure-filled tactics to get drivers on their side.

The new rules mean operators must clearly communicate all towing and storage costs and obtain complete driver consent before towing begins.

The changes will also ensure stranded drivers have access to a vehicle and their personal belongings, free of charge, and that they’ll receive an invoice with itemized costs and full details of the services provided.

Service Alberta Minister Dale Nally is responsible for the move.

“These new rules send a clear message that operators who take advantage of Albertans in their time of need will be held accountable,” he said in a release. “Alberta drivers deserve confidence that when their vehicle needs to be towed, they will be treated fairly, consistently and with full transparency.”

Ongoing issues

These aren’t the first steps taken to stop the problem.

Last summer, the province created a 200-metre exclusion zone around accident scenes.

It prohibits any tow trucks to enter unless requested by the driver or police on scene.

Despite this, predatory practices have persisted.

In December, two insurance companies reported suspected fraudulent activity by two tow truck companies to Calgary police.

Both companies were owned by the same person.

It’s alleged the man, owner of Southway Towing and Country Side Towing, issued insurance invoices with charges for services not provided and excessively high fees.

The accused is facing 12 charges, including fraud and possession of property obtained by crime over $5,000.

Tips for drivers

Police remind the public that legitimate tow truck companies will not use high-pressure or fear-based tactics, and they will not charge exorbitant prices or additional fees on top of the tow cost.

Officers recommend that if you are involved in a collision and require operator help, wait for first responders to arrive on scene before agreeing to have your vehicle towed.

Calgary police will always facilitate tows for serious-injury and fatal collisions.