The Edmonton Police Service has charged 11 owners of 10 local tow truck companies in relation to fraudulent billing practices to insurance companies. The charges stem from an investigation that began last summer into the business practices of tow truck companies.
Investigation Background
- The investigation was launched after police received complaints about tow truck operators demanding people use their services at the scenes of collisions.
- The Alberta Motor Association (AMA) issued a warning about predatory towing, stating that unethical operators would arrive uninvited, create a false sense of urgency, and leave drivers facing huge fees.
- The AMA reported an increase in complaints about "accident chasers," particularly in Edmonton and Calgary.
Drivers’ Rights
Drivers have several rights when it comes to towing services:
- Refusal of Services: Drivers can refuse unsolicited services.
- Choice of Operator: Drivers can choose their tow operator and where to take their vehicle unless directed otherwise by police.
- Access to Vehicle: Drivers can access their vehicle during regular business hours to retrieve personal items.
- Disclosure of Kickbacks: Drivers can ask if any kickbacks are received from taking vehicles, either directly or indirectly.
Tow companies must adhere to the following requirements:
- Provide quotes prior to service rendered.
- Itemize invoices before payment is made.
- Disclose all costs associated with recovery, towing, impoundment, storage, etc.
Response from the AMA
The charges against the 11 individuals are related to allegations of fraudulent billing practices with insurance companies. In response to growing concerns over predatory towing practices, the AMA is urging drivers to be aware and know how to protect themselves from these scams.
"We’re seeing more cases where people are being taken advantage of by these unscrupulous businesses," said an AMA spokesperson. "It’s essential for drivers to understand their rights when dealing with towing services."
Tips for Consumers
The Alberta Motor Association is offering tips on what consumers should do if approached by someone claiming they need a tow:
- Do not accept help or advice from anyone other than your own insurance company or law enforcement.
- Do not sign anything without reading it carefully first.
- Be wary if someone shows up at your accident scene claiming you need a tow.
- Always ask for written estimates before agreeing to any work done on your vehicle.
- Never pay cash upfront for repairs or maintenance work; always get written estimates first.
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