The U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) today expressed strong support for trucker protections against predatory towing fees in a comment filed on the Federal Trade Commission’s (FTC) proposed rule banning junk fees. FMCSA’s comment outlines concerns with predatory towing junk fee practices that significantly increase costs for commercial motor vehicle owners and operators. The comment also offers support for the proposed ban on hidden and misleading fees and urges the FTC to consider additional restrictions against the types of unnecessary and excessive mandatory junk fees plaguing truckers. FMCSA’s filing is part of President Biden’s whole-of-government approach to lower costs for Americans by banning hidden junk fees.
“When a truck driver’s vehicle is towed, they can’t earn a living until they get it back — leaving them vulnerable to predatory junk fees from towing companies,” said U.S. Transportation Secretary Pete Buttigieg. “We support FTC’s efforts to stand up for truckers by acting to ban junk fees and prevent predatory towing fees that can cause significant financial harm.”
“Predatory towing negatively impacts consumers, including commercial motor vehicle drivers and trucking companies. It is detrimental to the overall health of the trucking industry, and it's time to end excessive rates, surcharges and other unfair fees associated with predatory towing,” noted FMCSA Acting Deputy Administrator Sue Lawless.
Towing can occur at the request of the trucker after a breakdown, or at the request of law enforcement or a property owner if the vehicle has been parked illegally. In either case, towing causes substantial distress for truckers who are unable to earn a livelihood until they can regain access to their vehicle. Once their vehicle has been towed, truckers are in a very vulnerable position and highly susceptible to predation. FMCSA is concerned that predatory towing companies can and do use their possession of the vehicle as leverage to prey upon truckers who are in no position to push back.
While there are a wide range of predatory tactics associated with towing, a number of them center on the mandatory or otherwise unavoidable fees that towing companies charge. FMCSA’s comment outlines several potentially unfair or deceptive fee practices used by predatory towers. These include hiding fees until the tow is completed, charging for unnecessary or worthless services, and imposing an excessive number of fees for excessive amounts. These predatory fees can add up to thousands of dollars for truckers.
In October, the FTC proposed a ban on junk fees that would prohibit businesses from charging hidden and bogus junk fees by requiring them to include all mandatory fees when quoting a price. FMCSA believes that predatory towing fee practices fall within the purview of FTC’s proposed rule, which would greatly benefit truckers if finalized. In its comment to the FTC, FMCSA expresses strong support for the important protections and offers suggestions for additional restrictions that would further help protect truckers from predatory towing junk fees. These suggestions include:
FMCSA’s comment is available at: https://www.transportation.gov/briefing-room/ftc-fmcsa-comment-nprm-r207011
The filing is part of USDOT’s effort under the Biden-Harris Administration and Secretary Buttigieg to significantly expand consumer rights in transportation, including by limiting and banning hidden junk fees. USDOT is currently pursuing rules that would:
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The Federal Motor Carrier Safety Administration’s (FMCSA) mission is to prevent crashes, fatalities, and injuries involving commercial trucks and buses. FMCSA develops safety and regulatory standards for commercial driver’s licenses; analyzes data; sponsors research; and promotes enforcement and education. FMCSA partners with nonprofit organizations, local and State governments, and other stakeholders to support innovative commercial driver training, safety inspections, and enhanced compliance and enforcement initiatives.
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