Apr 15, 2014
By Scott Walker
The Province is announcing proposed new regulations to control the tow truck industry.
The Minister of Consumer Services announced plans to reduce fraud and unscrupulous pricing among Ontario’s 1,200 towing operations and vehicle storage facilities.
Tracy McCharles says most companies operate within the law, but she says everyone hears stories of shady operators. She says consumers have spoken of facing demands for exorbitant fees in cash before a operator will tow a vehicle. She says others have complained about having their vehicles towed long distances to storage facilities or body shops to inflate the fees.
McCharles says the new regulations will help reduce insurance rates. She says there have been allegations “that towing operators contribute to the inflation of auto insurance claims by steering claims” to certain storage facilities and repair outlets.
McCharles says the proposals form part of the government’s commitment to reduce fraud in the auto insurance industry and pass the savings on to consumers.