On Wednesday, the U.S. Department of Transportation (DOT) threw its support behind a proposed junk fee ban that would protect towing fees for truckers.
In a comment filed on the Federal Trade Commission’s (FTC) proposed rule banning junk fees, the DOT’s Federal Motor Carrier Safety Administration (FMCSA) outlined its concerns with predatory towing junk fees that can significantly increase costs for commercial motor vehicle owners and operators. The FMCA’s comment also supports the proposed ban on hidden and misleading fees, and urged the FTC to consider adding more restrictions on unnecessary and excessive junk fees faced by truckers.
“When a truck driver’s vehicle is towed, they can’t earn a living until they get it back — leaving them vulnerable to predatory junk fees from towing companies,” U.S. Transportation Secretary Pete Buttigieg said. “We support FTC’s efforts to stand up for truckers by acting to ban junk fees and prevent predatory towing fees that can cause significant financial harm.”
If a trucker’s vehicle is towed, whether it’s due to a breakdown, or because law enforcement or a property owner feel the vehicle is parked illegally, the trucker is unable to make a living until towing fees are paid leaving trucker vulnerable to predatory fees. FMCSA said it was concerned that predatory towing companies use the possession of a trucker’s vehicle as leverage to prey on truckers who lack the ability to push back.
“Predatory towing negatively impacts consumers, including commercial motor vehicle drivers and trucking companies. It is detrimental to the overall health of the trucking industry, and it’s time to end excessive rates, surcharges and other unfair fees associated with predatory towing,” FMCSA Acting Deputy Administrator Sue Lawless said.
FMCSA said those fees can be hidden until the tow is complete or charge the trucker for unnecessary and worthless services, sometimes adding up to thousands of dollars.
The towing junk fee ban is part of a larger junk fee ban proposed by the FTC in October that would prohibit businesses from charging hidden or bogus fees by requiring them to include all of the fee when quoting a price. FMCSA said it believes predatory towing junk fees fall should be part of the FTC’s proposed rule, and would benefit truckers if finalized.
Other issues FMCSA supported included banning junk fees for unnecessary goods or services, prohibiting or restricting excessive fees, and treating each illegal junk fee as a violation.