Calgary police charge tow truck company owner with fraud

Calgary police have charged a tow truck operator, the first since the city updated a bylaw last year to crack down on predatory practices within the industry.

Police say they received reports from two insurance companies in December about possible fraudulent activity related to two tow truck companies. 

The tow companies, Southway Towing and Countryside Towing, are owned by the same person. 

The insurance companies said they reached out many times to recover nine vehicles from the tow operators’ properties, but there was either no response or lengthy delays. Police say those delays racked up “excessively high fees” invoiced to the insurance companies. 

Police carried out a search warrant at a residence on the 5000 block of 80 Avenue N.E., where nine vehicles were seized. 

A 25-year-old Calgary man faces numerous charges, including nine counts of fraud over $5,000, possession of property obtained by crime and mischief under $5,000. 

His next court date is Feb. 18. 

Predatory practices still happening: AMA

Dominic Schamuhn, manager of government relations with the Alberta Motor Association, says recent regulations, both provincially and in Calgary, have served as a strong deterrent to potential bad actors in the tow truck industry — but predatory towing remains an issue. 

Last February, Calgary city council updated a bylaw to crack down on predatory tow truck drivers. 

Under the new rules, tow trucks cannot come within a 200-metre radius of a crash unless requested by first responders or the owner or operator of the vehicle involved in the collision. 

Doing so can result in a $10,000 fine.

The province brought in similar regulations last summer, albeit with lower fines. Disobeying the 200-metre exclusion zone can net a tow operator a $1,000 fine. 

How to protect yourself

Predatory tow drivers take advantage of drivers at a vulnerable and stressful time, Schamuhn said, and it’s important to listen to your “spidey senses” in those situations.

“If it doesn’t feel right, something probably isn’t right,” he said.

Schamuhn says there are a number of tactics predatory tow operators may use, including pressure to accept their services, exorbitant fees for the tow, taking the vehicle to an unknown location or refusing access to a vehicle.

He says drivers should know they have the right to refuse any towing services, and the right to choose where their vehicle goes.

“Reputable tow operators — the companies that folks recognize and know — we’re all pretty busy with our own calls for service,” he said.

“If somebody has approached you after a collision or if you’re broken down on the side of the road and you didn’t call them, be suspicious.”