Michael Medved is just one of dozens of New Yorkers who has been the victim of a towing scam by Clutch Towing in Brooklyn (1) — a company that is still on the books with the City of New York, in spite of the fact that the company, along with Five J’s Automotive, reached a settlement with the city last year due to overcharging customers for their services.
Medved described to CBS News and Brooklyn News 12 (2) how his car just disappeared one day. He walked outside his apartment and couldn’t find his red 2025 Hyundai. Medved called the police, but they had “no idea” where his car was.
After weeks of searching, and filing a claim for a stolen vehicle with his insurance, he got a call in mid-February from Clutch Towing — the company who had taken his car away on January 2. Now, he’s on the hook for $1,660 for the tow and storage fees.
The City of New York’s 311 portal and social-media pages have posts about the company from January of this year, saying “Clutch Towing overcharged New Yorkers for towing and vehicle storage. Are you one of them? We’re helping people get their money back!”
In spite of this, New York City’s Department of Consumer and Worker Protection (DCWP) Commissioner Sam Levine (3) told CBS News that “if companies agree under settlement to come back under compliance with the law, that’s something we will often entertain.”
“But I wanna be clear — if companies agree to follow the law, they need to follow the law.”
Here’s what you need to know about tow truck scams and predatory operating practices from companies of this kind, plus tips on how to protect yourself — and what to do if you’re targeted.
Brooklyn News 12 reports the city has protocols for towing companies that should prevent issues of missing cars like Medved’s. By law, police need to issue a ticket for any car on a public street, and the ticket needs to be on the car before a towing company can take that car away. And within 30 minutes of towing the car, they need to log everything with the local precinct.
The thing is, Medved’s car was not logged with the NYPD, and CBS News reported that an NYPD spokesperson “said they could not find any record of the NYPD ordering the tow for Medved’s car.”
Both CBS and Brooklyn News 12 spoke to other New Yorkers who claimed the company overcharged them, didn’t provide a receipt, and refused to accept credit cards — all things the DCWP warns residents about.
Towing Service Hub also warns drivers that ‘cash only’ tow services are a deliberate scam tactic (4). “Requiring cash eliminates your ability to dispute charges through your bank,” they write.
In spite of the ongoing issues, the DCWP insists their first priority is protecting New Yorkers from getting scammed. “We reserve all rights, including revoking the license altogether, to make sure New Yorkers don’t get ripped off again,” Levine told CBS News.
Read More: 5 essential money moves to make once you’ve saved $50,000
The National Crime Insurance Bureau (NCIB) found an 89% increase across the country in predatory towing claims between 2022 and 2024, impacting both large cities and rural areas (5). But the methods employed by these New York companies are only some of the tactics that shady towing companies use to defraud customers who have their vehicles towed by the city. Forbes also warns drivers that these businesses may use a number of extra, unnecessary fees to jack up prices (6). These can include:
Gate fees or release fees, for the towing company employee to hand over your car. Forbes warns these fees are illegal in many states.
Inflated fees that are above the industry standard. Many states also have limits on towing fees, and you can involve your insurance company if you suspect you were overcharged.
Trade publication Tow Industry Week warns legitimate tow companies that their businesses are getting a bad name because of these bad apples in the industry (7). Another common scheme involves tow trucks showing up unrequested after a car crash or accident, with the employee claiming to be from the driver’s insurance company.
“For drivers unsure what to do after a collision, that confusion can make them easy targets for unscrupulous tow practices, sometimes leaving them with bills reaching into the thousands of dollars,” per Tow Industry Week.
The NCIB offers a number of tips to drivers to help prevent them from becoming victims of a towing scam (8). Some of the top ways to prevent being scammed include:
Only deal with a towing company you or the police personally contact after an accident.
If you call for a tow truck, take the time to ensure the company signage and name is the same as the one you requested.
Don’t give a towing truck operator your insurance information or personal lien holder information.
Ask for a printed list of all charges for their services, and printed documentation of where the vehicle will be held.
If your car is towed, request an Authorization to Tow form and a receipt.
The DCWP warns that some companies may try to tack on extra fees for repairs, so ensure you don’t accidentally agree to these services.
Keep a record of all documents related to your tow, and never sign blank forms from the towing company.
In New York, DCWP-licensed tow truck companies must accept a credit card for payment by law. Check your local laws on towing before you agree to a cash-only payment.
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CBS News (1); Brooklyn News 12 (2); Department of Consumer and Worker Protection (3); Towing Service Hub (4); National Crime Insurance Bureau (5, 8); Forbes (6); Tow Industry Week (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
-1024x683.jpg "Florida Roads Become a Battleground for Illegal Immigration")
