Towing Companies Come Under Scrutiny At Colorado State Capitol

DENVER (CBS4)- At 4 a.m. on Thanksgiving, Benjamin Dermer's towing nightmare began.

"I woke up and my car was gone. No one answered the phone at the towing company or the apartment building because it was Thanksgiving."

He's among dozens of people who testified at the state Capitol Thursday in support of a bill aimed at preventing predatory towing practices.

Dermer says he was parked in a handicap spot with a temporary placard he received after knee surgery. He found out the placard had fallen when he saw a picture by the tow truck driver showing it on the floor. He wasn't able to get his car back until the next day, after paying $375.

"My crutches were in the trunk of my car and all of the food that I had prepared for Thanksgiving was in the trunk of my car."

His Thanksgiving was ruined but attorney Zach Neuman says tow companies have also ruined lives, "People lose jobs because of this, they miss rental payments, they take out payday loans, they borrow from family, they take out credit cards."

Neuman is also supporting the bill that would, among other things, require companies to give car owners 24 hours' notice before towing their vehicle.

Right now, a company can hold your car two days before notifying you even as charges accrue, and sell your car in 30 days if you can't pay in full.

Representatives Edie Hooton and Naquetta Ricks are sponsors of the bill that Hooton says will also limit when a car can be towed, "There's nothing written that creates any criteria for what justifies a tow or what doesn't, so it's absolutely at the discretion of the towing company."

The bill would prevent companies from towing cars for law enforcement matters like expired registration, bar them from selling vehicles, and require them to return a car even if the owner couldn't pay in full.

"Frankly it's just not practical," says Trevor Forbes, CEO of Wyatts Towing.

He says many of the vehicles they sell are abandoned, "To say you can never sell an abandoned vehicle, ever, is not reasonable."

Neither he says is releasing a car without getting paid first, "The person didn't want to get towed, they got towed because they were parked where they weren't supposed to, so the thought that people will pay later is not reasonable."

Forbes says he's open to changes, like limiting fees and giving 24 hours' notice, but he says the bill goes too far.

Dermer says he had to agree not to sue in order to get his car back. While the Public Utilities Commission oversees towing companies, most people are unaware they can file a complaint with the PUC. Under the bill, the Attorney General's Office would investigate complaints.

After several hours of testimony, the House Business Affairs and Labor Committee postponed a vote on the bill until next week.