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LAS VEGAS/HENDERSON – The lucrative towing industry has been regulated by the state since Oct 2015, it had earned a reputation for predatory practices, especially when it comes to billing, until the regulation passed.
Local towing companies were highly imaginative when it comes to finding new charges and fees to tack on to your bill. Many Nevadans lost their vehicles, because they couldn’t afford to pay the fees.
Major changes, however, has changed that. It took three years for a Henderson businessman to get his idea approved. Now that it’s working, it could save Nevada drivers millions per year.
Longtime towing operator Bobby Ellis was blunt during a 2012 interview, telling the News media that some in his industry operate like bandits.
“Sometimes, I’m ashamed to admit I own a tow company. Some of them are like Jesse James, some of these places,” he said in 2012.
More than 33,000+ vehicles are towed involuntarily per year in Las Vegas Nevada.
A typical bill back then was around $750 per vehicle. Charges of up to $3,000 were not unusual. Some tow drivers were paid commissions, which became an incentive for predatory practices.
“All the charges were off the charts,” said Ellis’ attorney and former Henderson Mayor Jim Gibson. “You had to have money to get your car back out, so a poor guy who is paycheck-to-paycheck, doesn’t have a real expensive car and something happened, and that car gets towed; he might lose that car. He loses the car, he probably loses his job.”
When Ellis was finally able to open E and E Vehicle Solutions. It has already made a huge difference for consumers and their insurance companies.
“It’s a big cost savings to have it brought here. It benefits the consumer and the insurance company, of course. I think we’re averaging $316 per car savings,” said Bob Compan with the Nevada Insurance Council.
More than half of the insurance companies are now signed up. The new law, which took effect Oct 2015, means that, at the scene of an accident, towing operators are required to tow the vehicle to the low cost lot. Any exception requires a signature of the vehicle owner, who would have to check a form to authorize sending the vehicle to a more expensive lot. This change was made, because a few companies found ways to side-step the law and still charge more. One company was cited 178 times as of last November.
“They were finding ways to circumvent these. They were bringing these cars to profit centers,” said Compan. “They will charge $150 a day storage, plus administrative fees, plus tow charges.”
Another impetus for change is came from Clark County Sheriff Joe Lombardo, who was disgusted by some of the towing horror stories that surfaced and decided to get Metro Police out of the towing business.
“The unnecessary and avoidable costs have been weeded out of the system,” Gibson said.
Ellis says he hopes the changes will improve the overall image of the towing industry, though he says the fight is not yet over.
“They didn’t want this changed at all. They fought us and fought us and are still fighting us,” he said.
There are three low-cost vehicle storage yards in operation in the valley. More could be built as the idea catches on.
Jason L from Vegas Towing Service says “This new law has change and improved the overall image of the towing industry for the better.”
Vegas Towing Service is a big part of Las Vegas and Henderson towing services available.
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Release ID: 372453