ASSOCIATION INSIGHTS
NAFC: Task Force to Combat Fraud and Nonconsensual Tows Through Education, Advocacy in States
P
redatory towing companies can make a bad day even worse. An unfortunate and costly accident involving a truck in your fleet is made even more
unfortunate and costly if your truck is towed away by the wrong tow company. These bad actors see accidents as a financial opportunity – racing to the scene of an accident in the hopes of a major payday, often aided by police scanners or a network of individuals who tip them off so they can be the first to arrive at the scene.
While the accident may have been relatively straightforward and only needed a simple tow, the invoice the truck owner receives is likely to be for tens, if not, hundreds of thousands of dollars. Motor carriers have been charged for equipment and personnel that were not used, and if they refuse to pay the bogus invoice, their truck will be held captive. Many carriers have been forced to pay invoices they know are fraudulent simply because they need to get their trucks back on the road, and legal action against tow companies is time consuming and expensive.
Unfortunately, this situation is all too common, and most states do not currently have consumer protection laws
to adequately regulate the behavior of rogue actors in the towing industry. In response to growing concern from members, the National Accounting & Finance Council (NAFC) is spearheading the American Trucking Associations’ action against predatory towing companies.
NAFC’s Advisory Board voted in February 2021 to establish a Towing Task Force. Ryan Erickson, Executive Vice President at McGriff, will lead the task force. Erickson has served on the NAFC Board since 2017 and has authored several guides to assist members in mitigating their insurance costs. Task force members include attorneys, state association executives, insurance professionals, motor carriers, and even representatives from the towing industry who want to root out this fraud and abuse in their industry. Members of the task force are currently drafting a guide for carriers on how to avoid being subjected to nonconsensual tows and fraudulent invoices.
Simple actions can make a big difference in resolving towing disputes:
• Have consult/ contact with local attorneys
• Have independent adjuster available/on site when needed
• Establish relationship with regional tow provider in advance
• Train drivers not to sign a consent-to-tow form. It must go through central dispatch
• Take photos and document the scene by noting: - equipment used
- number of tow EEs - names of tow EEs - services provided
• Notify shipper/broker of any cargo issues
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