• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Top Stories
Tow truck operator being detained over his tow truck business. First Alert 6

‘It’s like a bounty system’: Angry drivers in Omaha left waiting days to get their towed vehicles back — now the tow operator is facing charges. What you need to know about ‘predatory towing’

Drivers in Omaha were left baffled when their cars were towed away from an open lot — and even more so when they couldn’t get them back.

A group of car owners were gathered outside of Heartland Towing and Tow Pros in late May, demanding the release of their vehicles. The officers that responded to the scene interviewed the frustrated group, who all said that they had waited days for their cars to be returned to them.

Advertisement

Is this a one-off or part of a growing trend? Below, we explore the data on predatory towing practices — and the consequences the owner of Heartland Towing faced.

Multiple delays

When the drivers who had their cars towed over the weekend called the towing service, they were met with only an answering machine. “If your vehicle was towed away from private property, please call back during normal business hours from 10am to 3pm Monday through Friday.”

However, a holiday Monday prevented these drivers from getting their cars back in a timely manner.

“He had a bunch of people over the weekend he was towing and when people came to claim their cars he more or less said I’m closed, I don’t work holidays,” said Hernan Hernandez, one of the vehicle owners.

On the following Tuesday, the drivers told police and reporters they were faced with more delays.

“You got to wait hours or come back later or come back tomorrow because he can’t get them out because he’s got so many piled in there that he can’t get to them,” said Justin Ewing, one of the drivers. “So until everybody in front of you picks up their car, you can’t have yours back.”

Another problem: the owner of the lot, Joe Livinston, had been detained by police.

Advertisement

Even owners who had their fees ready to pay in cash were stuck. One couple took an Uber to the tow lot, only to find they were among those whose vehicle was buried in the full lot.

Others relied solely on their vehicles to get around. “My car is all the way in the back. It’s very frustrating because you know I was supposed to go see my kids today, my lady, supposed to go to work,” another vehicle owner said.

Others had crucial identification documents or car seats locked away in their towed vehicles.

While some of the drivers had parked in an empty lot with a ‘no parking’ sign, others had left their vehicles in the lot of a former Walgreens store, where there was no chain preventing such parking.

Must Read

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

Illegal towing

Predatory towing practices are common in the industry.

The New York Times reported in 2021 that these practices can include private contracts between businesses and towing companies to tow cars left in their lots over the time limit. While that’s perfectly legal, Eric Friedman, the director of the office of consumer protection in Montgomery County, told the Times that the tow companies are incentivized to be aggressive.

Advertisement

Towing companies pay “spotters” to watch the lot and report on anyone who goes over their time.

“It’s like a bounty system,” Friedman said. “It really has nothing to do with parking.”

The Public Interest Research Group (PIRG) reports that towing fees can also mount up quickly. Only about half of states have laws dictating maximum fees for towing, or storing towed vehicles (without the driver’s consent). There are only 14 states where “spotting” illegally parked cars is prohibited. And worst of all for the drivers in Omaha, theirs isn’t one of only nine states that legislate that towed cars must be available for owners to pick up at any time of day, as long as they communicate with the tow lot beforehand.

The increasing rate of predatory towing is also impacting professional drivers. A 2023 study from the American Transportation Research Institute found that 82.7% of truck drivers were charged excessive rates for having their trucks towed and a further 81.8% of carriers were charged “junk fees” on top of their tow.

Advertisement

So what can you do if your car has been towed illegally, or is being held in a lot for an unreasonable amount of time?

PIRG recommended that drivers contact their local police department through the non-emergency number, noting that some states require the towing company to notify police of any towing against the owner’s will.

These filings can help you find where your vehicle was towed quickly.

PIRG also recommended reviewing your bill closely, looking for any charges that seem excessive.

Be sure to check the laws in your state to ensure you’re not being overcharged. Finally, you have the right to dispute the towing company for a full reimbursement. Some states even allow you to sue for additional compensation if you can prove your car was towed illegally.

Consequences for Joe Livingston

First Alert 6 reported that the drivers in Omaha faced another roadblock in getting their vehicles back: Joe Livingston, the owner of Heartland Towing and Tow Pros, was arrested and handcuffed after being charged with ten counts of unauthorized or improper towing.

Livingston is now facing ten misdemeanors. He was released from custody, but refused to answer any questions from the First Alert 6 team.

You May Also Like

Share this:
Rebecca Holland Freelance Writer

Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.

more from Rebecca Holland

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.