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Towing companies fight for changes, commission asks for more data
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BATON ROUGE — The Louisiana Public Service Commission voted on a measure that would provide changes to the towing industry for non-consensual towing. It's been open for discussion since 2016.
Changes include a 15% rate increase across the board and starting next year, a Producer Price Index adjustment on rates, and a transit time rate. Towing companies, which have previously only accepted cash, will now be required to accept credit cards.
The commission was unable to agree on decisions about storage rate fees and has asked for more data on non-consensual tows.
Towing companies in Louisiana say they are struggling to keep up with costs as their tow yards fill with vehicles that have essentially been abandoned.
"There's no recourse for us, if they don't pay us it just stays there until we do something with it," Caley Joyner of River City Towing in Monroe said.
Towing companies say their rates have remained stagnant as prices continue to rise. Jared Varnado of Varnado and Sons Towing is president of Towing and Recovery Professionals of Louisiana. He says while the recent 15% increase has helped, it won't solve the industry's problems.
"From 2020 to today, our insurance has gone up over $150,000 with the same amount of trucks and zero losses," Varnado said.
When it came time to make decisions, there was some frustration between commissioners. They ultimately did not decide to increase storage rates, which towing companies say would give insurance companies and car owners an incentive to pick up their property. The LPSC says it will continue to work with towing companies while it looks over data.
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