A former judge will lead a three-month investigation into Queensland's tow truck industry, after hundreds of people came forward with stories about scams and bullying.

Former District Court judge Michael Forde has been tasked by Cabinet to clarify the legality of towing vehicles from private property, and how to regulate fees for towing and storing cars.

The terms of reference also include better signage for private parking, restrictions on the distance a car can be towed, and how to stop predatory practices such as "spotting".

Before his judicial career, Mr Forde assisted during the Fitzgerald inquiry, where he famously questioned former premier Joh Bjelke-Petersen about the doctrine of the separation of powers.

The investigation comes after questionable practices by rogue tow truck drivers, including exorbitant fees and tricking drivers into parking in private spaces, were revealed.

The retired judge said there were various stakeholders involved including property owners, restaurant and venue managers, as well as tow truck operators.

"There are a few operators who wish to exploit the system with predatory practices, and it gives the industry a bad name," Mr Forde said.

"There are shades of illegality, for example intimidatory conduct involving threats ... would be an assault under the criminal law.

"However, on the civil side there are grey areas in relation to cars being taken [from private property]. We're also dealing with excessive charges for having those vehicles removed."

Main Roads Minister Mark Bailey said the car park activity of "sharks and rogues" in the towing industry was currently unregulated.

"The practice of removing parked vehicles on private property by tow truck operators is not currently subject to regulation and is causing considerable community concern," Mr Bailey said.

"These unscrupulous practices within the industry have to stop, we've had a gutful, the public has had a gutful."

Mr Bailey said complaints raised include the inadequacy of the parking signage used, the level of towing fees being charged, which reportedly range between $400 and $1,000, vehicle owners being left stranded, and at times intimidating behaviour of the tow truck drivers and company.

"Clearly what has been going on in the industry is absolutely unacceptable," Mr Bailey said.

Hotline receives more than 300 calls

The 1800 681 636 hotline was set up only last Monday but has already received 339 tales of alleged deception, including 250 official complaints.

The Brisbane suburbs of Fortitude Valley, Albion and Newstead made up 36 per cent of the complaints, followed by a 15 per cent spread across Ascot, Hamilton and Eagle Farm.

The data, given to the ABC by the Government, is yet to be verified but will be passed on to Mr Forde.

In the barrage of gripes that have flowed in, there are numerous cases of cars being hoicked up on a tow truck just minutes after parking.