Colorado Attorney General Phil Weiser announced a $1 million settlement with Wyatts Towing, a company embroiled in predatory towing practices. This resolution follows an extensive investigation revealing that Wyatts Towing engaged in unlawful activities, including towing thousands of vehicles without valid permits since 2019 and charging excessive fees. The company’s commission-based business model further encouraged staff to tow as many vehicles as possible.
The settlement, addressing these predatory towing practices, compels Wyatts Towing to reform its operations, ensuring fairer treatment for future consumers. Notably, the company had exploited loopholes in state law, towing vehicles without proper authorization and selling them at auction, often to the detriment of vehicle owners unable to pay towing fees.
This case highlights the need for tighter regulations in the towing industry to protect consumers from such predatory practices. Wyatts Towing, under the agreement, will refrain from collecting $236,000 in outstanding debts from consumers who entered its loan program.
Additionally, the company will pay $764,000 to the state, contributing to restitution, fraud enforcement, consumer education, and public welfare initiatives. Moving forward, Wyatts Towing has committed to improving its business practices, including conducting regular audits to monitor towing trends.
