NYC Sues Tow Company Over Predatory Fees, Illegal Practices

NEW YORK, NY — Mayor Zohran Mamdani and the New York City Department of Consumer and Worker Protection announced a lawsuit on Wednesday against Instant Recovery Corp., a Bronx-based tow truck company, for allegedly engaging in predatory practices and violating city law.

DCWP investigated after receiving numerous complaints, finding that the company repeatedly charged illegal fees, overbilled customers, and used unlawful tactics to exploit New Yorkers.

“Tow trucks often meet New Yorkers on their worst days — after an accident or a breakdown,” Mamdani said. “Today, we’re fighting back — demanding full restitution for every New Yorker harmed and making clear to the entire industry: if you prey on our neighbors and ignore the law, we will hold you accountable.”

DCWP is seeking full restitution for affected consumers, civil penalties for over a thousand violations, and revocation of the company’s tow truck license.

Last week, the agency issued warnings to more than 300 tow operators citywide to reinforce compliance with towing and booting laws.

Instant Recovery, which began operating in November 2024, primarily in the Bronx, allegedly:

• Charged more than legally permitted tow, drop, and storage fees.
• Conducted illegal tows.
• Required cash-only payments.
• Refused to provide receipts.

Deputy Mayor for Economic Justice Julie Su said the city is pursuing the case “without fear or favor” to return money owed to New Yorkers, while DCWP Commissioner Sam Levine emphasized that the lawsuit “puts the entire industry on notice.”

The lawsuit is part of the city’s broader crackdown on junk fees under Executive Order 09, which includes recent actions against hotels, solar companies, and predatory employment agencies.

DCWP licenses businesses performing “non-consensual” tows, including vehicles blocking private driveways, parked on private property, abandoned, stolen, or broken down. The agency oversees the Directed Accident Towing Program and Rotation Tow Program, and also licenses companies that boot vehicles on private property.

Consumers can verify licenses or file complaints through the website or by calling 311.