Ontario cracking down in tow truck industry

Thestar.com
April 15, 2014
By Richard J. Brennan

Ontario’s oft-criticized tow truck industry is being brought to heel, Consumer Services Minister Tracy MacCharles says.

MacCharles told reporters Tuesday the minority Liberal government is to introduce legislation - amending the Consumer Protection Act - to regulate the towing and vehicle storage industries in an effort to protect the motoring public from gouging.

“A number of serious concerns have been raised about the industry by consumers and by groups, such as the Insurance Bureau of Canada,” MacCharles said.

There are approximately 1,200 tow truck operators and 3,000 tow truck drivers in Ontario.

She said concerns range anywhere from tow trucks drivers demanding motorists hand over hundreds of dollars in cash before hooking up their disabled vehicle to having vehicles towed off to far away lots where motorists are faced with “unexpectedly large” bills,

“These are the kind of unfortunate experiences we are trying to eliminate for drivers in this province.”

MacCharles said besides this “dubious” behaviour, tow truck drivers have an extraordinary high collision rates, 20 per cent compared to 1 per cent for other motorists. She noted these accidents often happen as the tow trucks race to an accident scene.

The minister said there have also been allegations of two truck drivers colluding with vehicle storage and body shop operators, which she says contribute to increased insurance premiums for everyone.

“Rates are directly linked to claim costs and reducing costs will help lower rates for Ontario drivers,” she said.

The proposed legislation would require tow truck operators and storage providers to:

Obtain permission from consumers before charging for towing and storage services.

Post prices and other information, including the operator's name and contact information.

Accept credit card payments from consumers.

Provide an itemized invoice listing services provided and the total cost.

The province is also proposing to include tow trucks in the province's existing Commercial Vehicle Operator's Registration, bringing new oversight to the industry.