Connecticut reaches settlement with tow company over illegal ‘junk' fees: Attorney General

The state has reached a settlement with a towing company over illegal junk fees charged to people who had their cars towed, according to Attorney General William Tong.

The $65,000 settlement is with Hilario Truck Center and Hilario's Service Center, which have locations in Newtown and Danbury and provide tow services for police and private property owners.

In 2022, the Department of Motor Vehicles referred several consumer complaints to Tong's office about the wrecker companies charging fees to people for use of personal protective equipment, towing vehicles from one spot to another on the companies' property, fuel surcharges, truck cleaning fees, and more, according to the attorney general.

The DMV sets towning fees and they are all-inclusive.

“Hilario’s charged junk fee after junk fee, violating state statutes and significantly overcharging drivers or their insurers. If you were towed by Hilario’s, you may be entitled to restitution. In addition to consumer refunds, our settlement ends these excessive charges and requires Hilario’s to pay $10,000 to the state. Tow fees are all-inclusive and tightly regulated by the state. Getting towed is stressful enough; no one should be subject to excessive illegal junk fees,” Attorney General Tong said in a news release. “Other wrecking companies charging these fees are on notice.”

Some consumers may be eligible for a refund of those fees. The settlement applies only to tows initiated by police or traffic authorities, according to Tong. It does not apply to tows at the request of private property owners or by the consumers themselves.

Consumers who may be eligible include:

• Consumers (including businesses) whose vehicles were towed by Hilario’s after January 1, 2019 at the arrangement of a law enforcement officer or traffic authority, who personally paid one or more of the listed categories of fees, and who submit a written request with documentation to Hilario’s before April 22, 2025.

Consumers who are not eligible include:

• Consumers whose vehicles were towed by Hilario’s at the arrangement of a private property owner or the consumers themselves
• Consumers whose fees for towing services were paid by an insurance company
• Consumers who were charged fees only on December 31, 2018, or before

Consumers must submit a written request directly to Hilario’s with documentation of their expense to be eligible for a refund. The written request should be submitted to 131 Mount Pleasant Road, Newtown, Connecticut, 06470. The written request must be submitted by April 22, 2025.

Consumers who were charged, and paid Hilario’s, the following charges may be eligible for a refund:

For vehicles under 10,000 pounds gross vehicle weight rating (including most cars and trucks):

• A fee to release a Towed Vehicle to its owner or a person legally entitled to its custody, whatever such fee is called, Including a “gate” fee
• A fee to move a Towed Vehicle from one area on Defendants’ property to another
• A fee to allow a Consumer or Representative to access a Towed Vehicle or its contents, whatever such fee is called, Including a “yard assistance” or “escort” fee
• A fee for the use of any radios and other communication devices
• A fee for safety equipment, Including a hard hat, safety vest, or safety glasses provided to a Customer or Representative, whatever such fee is called, Including a “PPE” fee
• A separate fee for the use of other equipment, Including blocks, shackles, chains, hand tools, straps, winches, dollies, or pans or drums, and including a “service truck” fee or any other fee for another vehicle of Defendants’ to travel to, or be present at, a scene
• A fee to clean, put away, restore, or reset any equipment
• A fee for use of fluid absorbent products, Including Speedy Dry and similar products
• A “call out” fee or other fee for attending a scene
• A “loadout fee”; or any other fee for preparing or equipping a tow truck or other vehicle of Defendants’ for use; or
• Any administrative surcharge or additional fee on services rendered, including without limitation any “administrative” or “administration” fee and any fuel surcharge, unless, and to the extent, specifically permitted by the Commissioner of Motor Vehicles

For vehicles over 10,000 pounds gross vehicle weight:

• A charge for a minimum number of hours greater than one, and
• For services over one hour, charges for increments over such hour in larger than 15-minute increments; and
• A Mileage Charge where an Hourly Rate is charged for medium and heavy duty Nonconsensual Tows, in compliance with Regs. Conn. State Agencies § 14-63-36b(6).

Company owner Paul Hilario released a statement to NBC Connecticut Tuesday afternoon:

"I have not seen this press release yet and would like more time to read it, but I will say we are not going to comment on the settlement agreement or Attorney General Tong’s statement as the settlement agreement speaks for itself. However, this matter emphasizes the disconnect between the two agencies that oversee the towing industry: the department of motor vehicles (DMV) and the department of emergency services and public protection (DESPP). The DMV regulates the fees associated with nonconsensual tows and the DESPP, which oversees the Connecticut State Police, dictate what equipment the towing companies have to use to clear a motor vehicle accident from our state highways. The DESPP’s goal is quick clearance, which is why they require towing companies to operate and maintain a variety of very expensive equipment. Quick clearance is a very serious issue in light of our overburdened highways. Yet, the DMV is not allowing the towing industry to include the costs associated with that mandated equipment into their fees. The towing industry has tried to address these issues with the legislature but were unsuccessful. Hopefully, the legislature will revisit this issue soon. How can towing companies quickly clear a motor vehicle accident from our highways if they cannot charge for the equipment required by the DESPP? The Hilario companies have been in business since 1976 and we pride ourselves on providing honest and effective service."