A CRACKDOWN on the tow-truck racket ripping off WA motorists is finally coming.

Tow-truck drivers would have to disclose their fees before they remove damaged vehicles under proposed rules that would also see rogue operators hit with big fines for breaches.

There are also calls for WA to catch up with the rest of Australia by introducing maximum towing fees and banning “chase crashes” from paying spotter fees.

As reported by The Sunday Times this month, motorists are being held to ransom by tow-truck cowboys who use “predatory, misleading and deceptive” tactics.

Towing rates for journeys of less than 10km range from $300 up to $1500 in central Perth, with dodgy companies taking advantage of “vulnerable” drivers.

The business model used by some companies has been confirmed by the Insurance Commission of WA, the sole underwriter of motor injury insurance in this State.

In its submission to an inquiry into the automotive smash repair industry, ICWA described how motorists involved in accidents were being snared.

The first is when a driver from a nominated tow-truck company is sent out and provides the owner of the damaged vehicle an “authority to tow form” with the price section left blank.

The motorist has no clue about the cost and the tow-truck company can later charge a significantly higher fee as it has possession of the vehicle.

The second is when tow trucks arrive opportunistically at a crash scene and compete for the work.

The first to arrive at the scene typically gets to tow the vehicle to a yard and then charges a high fee for its release.

There are no set regulated towing rates in WA for breakdown and/or crash towing, and there is considerable variation in fees between towing operators

“Fees are charged differently for crash and breakdown towing. For example, the fees to tow a crash vehicle from the CBD to Osborne Park range from $300 to $1500,” Mr Blackman wrote.

“The Insurance Commission understands that higher fees are charged when the crash may be insurable as the towing operator believes the insurer is able to pay a higher price than the consumer in non-insurable crashes.

“The Insurance Commission is aware that towing operators may also add creative costs to their invoices, such as hook fees, tilt-tray required fees, yard-in fees, yard-out fees, additional kilometre fees, storage fees and second tow fees.”

The Transport Department last year proposed changes to industry regulations that would require tow-truck drivers to disclose their fees, as well as increasing penalties for those who breach regulations.

A WA Government spokesman said it was working with the industry to review the findings of this consultation.

“The State Government is broadly supportive of changes to require tow-truck operators to advise customers of their fees and will continue to work with the relevant departments on any proposals they may progress with the tow-truck industry,” he said.

Consumer Protection commissioner David Hillyard said consideration was being given to partially transferring responsibility for the towing industry from the Department of Transport to his team.

The agency had received 100 inquiries and 25 complaints regarding tow-truck operators over the past three years.

However, it is believed gripes are more often lodged with insurance companies and other government departments.

WHAT TO DO IF YOU NEED A TOW

Under the road traffic regulations tow-truck drivers are required to have an authority-to-tow form signed by the driver before towing the vehicle away. Where possible, drivers should:

Seek the advice of their insurer.

Ask what the towing costs will be and whether vehicle storage costs will apply for holding the vehicle.

Avoid signing a towing authority form that does not disclose the total cost of the service or the towing location.

Consider keeping in their vehicles a list of their insurer’s approved repairers or holding yards.

Source: Consumer Protection