Tuesday, August 20, 2013

Kickbacks Continue

The agreement between the towing company and the parking facility can become a lucrative landfall for the towing company. In today's private property towing business environment, the key to success is based on incentives offered.  Not all towing company owners offer incentives such as free legal representation in Court, parking lot striping, free parking permits, letters to give to residents, free towing for office staff, additional signage installed, financial donations to Christmas parties and cash back for each vehicle towed to the parking facility owner/manager/operator

This would not occur if property managers at apartment complexes would just say no to any kickback offered. But that doesn't seem to be happening, as residents and guests are routinely taken advantage of because of questionable tows, while the property manager denies everything or refuses to demand a vehicle towed illegally returned or released for free.

Sec. 2308.402. Towing Company and Booting Company Prohibited from Financial Involvement with Parking Facility Owner.
(a) A towing company or booting company may not directly or indirectly give anything of value to a parking facility owner in connection with:
(1) the removal of a vehicle from a parking facility; or
(2) the booting of a vehicle in a parking facility.
(b) A towing company may not have a direct or indirect monetary interest in a parking facility:
(1) from which the towing company for compensation removes unauthorized vehicles; or
(2) in which the booting company for compensation installs boots on unauthorized vehicles.
(c) This section does not apply to a sign required under Section 2308.301 provided by a towing or booting company to a parking facility owner.

The Texas Attorney General in 2002 issued an opinion reference kickback offered by towing companies to parking facilities.  At the time, the Texas Towing Law was in the Transportation Code and re-codified in the Occupations Code where the same exact law is today.