How did this start?
Last summer, Alberta police began investigating potential predatory tow truck companies who would wait for drivers to get into collisions and appear suddenly with unsolicited towing services. These fraudulent tow truck companies charge inflated prices, impede first responders from doing their job properly, and attempt to take away the rights of the customers. While these cases were not common before 2024, there was a sharp increase of predatory towing starting in the summer of 2024.
On February 25, 2025, the Calgary city council passed a bylaw to deter these predatory towing practices. The bylaw prohibits tow truck operators from entering the scene of an accident without permission from the owner/operator of the vehicle, or emergency responders. If convicted, tow truck operators could face a $10,000 fine.
On May 21, 2025, Edmonton Police Services charged 11 owners of 10 tow truck operators for fraudulently billing insurance companies a combined total of over $120,000 for unprovided services. They were also inflating bills, charging more than $5,000 for a basic collision tow which normally would cost a few hundred dollars.
How can I prevent this?
An important way to make sure you are not a victim of predatory towing is knowing your rights. Your towing rights include:
- The right to refuse unsolicited towing service - In Calgary, the new bylaw prevents this at the scene of an accident, but in other areas of Alberta, you may say no to any towing service you did not ask for.
- The right to choose who tows your vehicle, and where - Unless emergency responders direct otherwise, you can pick a towing company of your choice and ask for your vehicle to be brought to any repair shop or storage facility you wish. Keep in mind though, your insurer may not cover the full repair expenses for an auto shop of your choosing if they charge significantly higher rates. Speak to your insurer if you have any questions about this.
- The right to access your vehicle during business hours to retrieve personal items - If your car is at a storage facility, you should have access to it when the facility is open
- The right to ask if a towing company receives a kickback for using a specific storage facility or repair shop - Some towing companies might be insistent on taking your vehicle to a specific shop. You do not have to comply, and you may ask if they get any payment from the shop for taking your car there.[LB1]
- The right to a quote prior to service, and an itemized invoice prior to payment - Review all charges on the invoice to ensure you are being rightfully charged. If any of the costs seem inflated or are paying for services that are not being provided, do not pay and find another towing company.
If a towing company refutes you on any of these rights, they may be a fraudulent company. Use reputable or known providers to be safe, and never sign blank forms. If you suspect a towing company to be fraudulent, report the incident to the police and the Canadian Anti-Fraud Centre.
