‘Bad actors.’ Charlotte prepares ways to penalize predatory towing companies

Companies could face broader limitations and steeper fines for predatory towing under penalties being considered by the City Council.

Residents have reported paying excessive amounts to retrieve their vehicles from tow yards, with companies sometimes slapping extra fees on drivers who contact the police, according to council members.

But state law limits how much Charlotte can regulate the issue, Assistant City Attorney Jessica Battle told the council’s safety committee on Monday. The city cannot cap how much money a towing company charges

Battle offered four recommendations on what the council can still do without running afoul of state law — mostly expanding on existing rules the city already has in place.

Towing companies must receive written authorization from property owners before towing a vehicle located on their property between 7 a.m. and 7 p.m. The city could expand that requirement to be in place 24 hours a day.

The city could also raise the financial penalty for when companies don’t follow the towing ordinance and increase the cost for repeat offenders. Right now, violators pay a $100 fine per violation.

“Sometimes that $100 is the cost of doing business that day, and the companies will pay the fine, and then continue to perform whatever tow they are doing,” Battle said.

Charlotte could also prohibit the towing of occupied vehicles, meaning drivers would have a chance to move if they’re inside their car. And Battle recommended the city add predatory towing to its legislative agenda, which is a list of priority topics Charlotte will lobby the General Assembly over.

The council generally supported the changes, although they felt more work needed to be done on the issue before tweaking city rules.

District 7 Councilman Ed Driggs said he wanted to see data related to towing: how often it happens and how many incidents might be classified as predatory. The presentation explained the legal framework but not the current situation in Charlotte, Driggs said.

The Charlotte-Mecklenburg Police Department is compiling data now, Battle said.

At-large Councilwoman Dimple Ajmera said she wants staff to also consider prohibitions on “retaliatory fees” that companies sometimes charge, and to establish a process for tracking repeat violators and reporting them to the Attorney General’s Office.

“Most towing companies do follow the rules. I think there are just some bad actors that are giving the industry a bad name,” Ajmera said.

The issue is expected to return to the safety committee next month with more information from CMPD. The committee could then advance the recommended ordinance changes to the full council for a vote.

This story was originally published October 5, 2026 at 4:32 PM with the headline “‘Bad actors.’ Charlotte prepares ways to penalize predatory towing companies.”