Denver Warns Tow Trucks: Drop The Overcharging

DENVER (CBS4)- On the heels of a CBS4 Investigation that found some Denver tow companies routinely overcharging drivers for "drop fees," the Denver City Attorney has sent a letter to 110 tow companies warning them that if they continue to break the law by overcharging, they face possible jail time and hefty fines.

"We want these tow companies to charge the amount legally set by law," said Denver City Attorney Scott Martinez.

If they don't, "We will prosecute," warned Martinez.

The no-nonsense warnings follow a CBS4 undercover investigation in May that found Denver tow companies overcharging for drivers for what are known as drop fees. That's how much a driver has to pay if they get back to their car before its actually been towed, but while the tow truck is still there.

State law allows tow companies to charge up to $70 for a drop fee but the state also allows individual municipalities to set lower rates. Denver has set a maximum drop fee of $15 which has been on the books since 1987. But this past spring, an undercover CBS4 sting twice caught tow companies charging an undercover CBS4 producer $70 for a drop fee, 366 percent more than is allowed by Denver code.

"I want to say thank for you the story that highlighted an issue we didn't know was going on ', said Martinez.

Late last month, Martinez sent a letter to those 110 companies writing "the investigation revealed that many companies were overcharging the allowable drop fee and violating Denver Revised Municipal Code… for illegal towing."

The Martinez letter went on to remind tow companies the most they can charge in Denver for a drop fee is $15.

"Any drop fee charged in excess of $15 in Denver may result in criminal prosecution with maximum penalties of one year in jail and $999. In fines," wrote Martinez.

Some tow companies said they were unaware Denver had a lower drop fee than surrounding towns and cities.

"Ignorance of the law is not an excuse," said Martinez. "The cap is $15 in Denver and if they charge more, we want to know about it."

He said drivers who are asked to pay a higher drop fee should call the Denver Police Department's non -emergency line and the case will in turn be handed over to the City Attorney's office and prosecution is possible said Martinez.

The City Attorney said city officials had no idea that tow companies working in and around Denver had been routinely overcharging for years, "This was the first time this issue was brought to our attention."

CBS4 Investigator Brian Maass has been with the station more than 30 years uncovering waste, fraud and corruption. Follow him on Twitter @Briancbs4.