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NEWARK
– The Office of the Attorney General
and the Division of Consumer Affairs have
taken action against three North Jersey
towing companies, including filing a civil
lawsuit against one, alleging illegal predatory
towing practices.
The lawsuit filed against PPM Towing, Inc.,
a Maplewood-based firm, is the first Superior
Court action filed by the state under the
Predatory Towing Prevention Act that was
enacted in April, 2009. The three-count
Complaint, filed in Elizabeth, also alleges
that PPM Towing violated the state’s
Consumer Fraud Act by engaging in unconscionable
commercial practices related to its towing
of vehicles from a private parking lot in
Union Township.
The
Complaint charges PPM Towing with unlawfully
using “spotters” to case the
parking lot and target towing opportunities;
demanding payment from vehicle owners as
a condition to unhooking vehicles that had
yet been removed from the parking lot; demanding
cash payments; and charging consumers for
the time needed for them to obtain the cash
to free their vehicles. The lawsuit also
alleges that the lot’s signage failed
to properly advise consumers about towing
by omitting certain required information.
“We
allege this towing company played by its
own rules, and violated our predatory towing
law, without regard to the legal rights
of drivers,” Attorney General Paula
T. Dow said. “We’re putting
all predatory towers on notice – follow
the law or face legal action.”
Additionally,
as part of a separate investigation, two
Jersey City towing companies and their owners
entered into settlements with the Division
for similar predatory practices. Gary Matarazzo
of EZ Towing and Recovery, Inc., and Daniel
E. Johnson of Danny’s Towing, Inc.,
each signed Consent Orders agreeing to,
among other conditions, cease and desist
from all predatory towing practices. The
Consent Orders further obligate the companies
to submit to binding arbitration with respect
to all outstanding consumer complaints,
and for any disputed consumer complaints
filed with the Division within the next
year. Each company also agreed to pay the
Division $19,123.00, to include civil penalties,
attorneys’ fees, and investigative
costs.
“It
is completely unacceptable, nearly two years
after the state’s Predatory Towing
Prevention Act went into effect, for any
towing company to be running roughshod over
consumers and their rights,” said
Thomas R. Calcagni, Acting Director of the
Division of Consumer Affairs. “Let
it be known: the days of towing companies
casing out parking lots, hijacking someone’s
vehicle, and holding it for a cash ransom
while authorities quietly stand by, are
over.”
Consumers
should know the law. The Predatory Towing
Prevention Act prohibits towing companies
from the following:
-
Failing to release a vehicle hooked or
lifted, but not actually removed from
private property, upon request of the
vehicle’s owner;
-
Trolling (cruising) for vehicles parked
without authorization;
-
Paying for information about vehicles
parked without authorization;
-
Refusing to accept an insurance company
check or a debit card, charge card, credit
card or check for towing or storage services,
if the towing company ordinarily accepts
such payment at its place of business;
-
Charging for a towing or storage service
not on the Division’s schedule of
services; and
-
Charging an unreasonable or excessive
fee.
A
consumer education brief that highlights
these and other key features of the Predatory
Towing Prevention Act has been produced
by the Division of Consumer Affairs and
can be read online at www.njconsumeraffairs.gov/brief/towing.pdf
.
Attorney
General Dow thanked the Police Departments
of Union Township and Jersey City for sharing
with the Division of Consumer Affairs consumer
complaints regarding the towing of vehicles.
Deputy
Attorney General Jeffrey Koziar of the Consumer
Fraud Prosecution Section is representing
the state in this action, assisted by investigators
from the Division’s Office of Consumer
Protection.
National
Consumer Protection Week (NCPW)
is a coordinated campaign that encourages
consumers nationwide to take full advantage
of their consumer rights and make better-informed
decisions. NCPW 2011 takes place March 6
through 12, 2011.
More
information designed to help consumers protect
themselves is offered free of charge at
the State Division of Consumer Affairs NCPW
website at www.njconsumeraffairs.gov
. Information is also available at the official
National Consumer Awareness Week website,
www.NCPW.gov
.
Consumers
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its website, www.NJConsumerAffairs.gov,
or by calling 1-800-242-5846
(toll free within New Jersey) or 973-504-6200.
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