Proposed N.C. bills target predatory towing, excessive fees

In May, the N.C. House of Representatives introduced two bills — House Bills 1024 and 1037 — aimed at regulating towing across the state. Current state laws about towing are only applicable in some cities and sometimes not enforced at the local level. 

H.B. 1024, Nonconsensual Booting and Towing Reform, would establish the Towing and Recovery Commission. The commission would regulate towing businesses by setting price caps on towing fees based on type of vehicle, region of towing and processing fees. Additionally, it would regulate towing done without the knowledge or consent of the vehicle owner  

Tristan Routh, an attorney for Carolina Student Legal Services, said in an email that the passing of H.B. 1024 would affect towing in the greater Chapel Hill and Carrboro area. 

“These would totally change towing and make it much more difficult for towing companies to tow at whim and charge lots of money in doing so," Routh wrote.

Though H.B. 1037 — titled End Predatory Towing Fees and Practices — was not taken up during the 2023-24 legislative session, it could be brought forth again next year to become law. 

The bill would require all fees charged by towing companies to be reasonable and disclosed to the driver, which has been a topic of conversation in Chapel Hill for years.

An example of alleged predatory towing occurred in late 2023, when Carr Mill Mall — a shopping center located in Carrboro — came under scrutiny following heightened parking regulations. Barnes Towing, the company that services Carr Mill Mall, also tows at Panera Bread on Franklin Street.

In 2023, nearly 50 complaints were filed against the company, many surrounding the fees imposed for the retrieval of cars.

If a car is towed by Barnes Towing from Carr Mill Mall, the owner may be charged up to $300. For a minimum-wage worker, this would require around 40 hours of work to pay off. The use of credit and debit cards to pay off the fees are charged an extra $150.

The fee also increases if the owner is unable to retrieve the car after a set amount of time, with the price increasing by $50 per every 15 minutes.

Routh wrote that there is currently no limit on what towing companies can charge. The Town of Chapel Hill attempted to introduce an ordinance limiting fees several years ago, but the ordinance was thrown out in the state appellate courts.

Jon Hartman-Brown, the economic development director for the Town of Carrboro, said that the Town itself does not tow on public lots. Though Town entities are limited in what they can do to curtail predatory or aggressive towing, they are interested in exploring options, he said.

“We are certainly responsive and respectful of private property rights, but ensuring that we have good, solid [and] fair regulations and policies in place that respect the shopper and the person whose car is being towed as well is important,” Hartman-Brown said.

Beth Lutz, the media relations manager for UNC, said in an email that the University Counsel would evaluate any changes to state law that require changes to the University's Ordinance Regulating Transportation and Parking.

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