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Feb 24, 2004
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21-Year-Old Killed
in Crash With Tow Truck
Feb 24, 2004 |
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FLORIDA
-- A 21-year-old driver, who witnesses say was speeding up and down a
residential street has died, after running a stop sign and hitting a tow
truck.
Fort Lauderdale police
officer Tim McCarthy says James Mallory Junior was thrown from the Buick
Regal he was driving, and the car landed on top of him.
Witnesses lifted the
car off of him, but Mallory was pronounced dead at Broward General
Medical Center.
People in the
neighborhood say Mallory was driving as fast as 80 miles per hour.
The tow truck's driver
Rodney Robinson, who was not injured in the accident, says it sounded
like a race track as Mallory sped through the stop sign.
State records show
Mallory's license had been suspended. (Thanks Mike)
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Two Tow Truck Drivers Killed in Crash on I-495
Feb 23, 2004 |
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MASSACHUSETTS
-- A Raynham man struck and killed two tow truck drivers early yesterday
as they stood in the breakdown lane of Interstate 495 in Brockton,
police said.
Daniel Cummings, 21,
plowed into Timothy Kelly, 23, of Bridgewater, and Jarrod Drew, 24, of
Brockton, just south of Exit 10 about 4 a.m., said Sergeant Edward
Principe. Cummings was listed in stable condition at Beth Israel
Deaconess Medical Center last night.
Cummings faces marked
lane violation charges, but State Police said the charges could be
upgraded depending on the outcome of a blood alcohol test.
Kelly and Drew worked
for A-1 Affordable Towing of West Bridgewater, where Kelly phoned early
yesterday to say his truck broke down. Drew drove a flatbed truck to
help him, police said. They were standing outside the vehicles when they
were struck.
Kelly was pronounced
dead at the scene and Drew was pronounced dead at Sturdy Memorial
Hospital.
Drew's uncle, Robert
Drew, said Jarrod lived with his girlfriend and their son in
Middleborough. He called his nephew, a graduate of Brockton High School,
a "real good kid."
The two had worked
together at the towing company for about a year and were also friends.
Timothy Kelly grew up
in Hanson. The second of six siblings, he attended Whitman Hanson High
School, where he played football."He was very energetic, always on
the go," said his uncle, Abington Fire Captain Ed Belcher. (Jessica
Bennett and Stephanie Vosk - The Boston Globe)
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Lowered Production Means Diesel Prices On The Rise
Feb 19, 2004 |
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The
national average retail price for diesel increased 1.6 cents from last
week to $1.58 per gallon, but it is 12 cents less than it was a year
ago.
Tow operators paid
more for diesel in every region than the week before, except in New
England, where the price dropped .8 cents per gallon.
The biggest price
change was in California, where the average price was almost $1.87 per
gallon – 5.6 cents more than the previous week. The West Coast region
saw the second-biggest price change at $1.79 per gallon, which is 4.8
cents higher than the previous week, according to the U.S. Department of
Energy.
The Gulf Coast states
sold the cheapest diesel, at $1.52 per gallon, nearly a penny higher
than the previous week.
Price increases were
affected by OPEC’s agreement to reduce quotas by one million barrels
beginning April 1, a forecast that oil prices will remain firm, and
winter weather hiking demand for heating oil.
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City Claims New Impound Fee is Not To Make Money
Feb 19, 2004 |
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PENNSYLVANIA
-- An ordinance that originally required a $10 registration fee for each
vehicle towed from and within the City of Wilkes-Barre has been tabled
until the city can get more legal advice.
The original wording
of the ordinance made it apply to all tows performed in the city,
however it has been re-worded so it only applies to cars towed for
parking violations.
The fee has also
changed from $10 to $25, but laughably, Mayor Tom Leighton claims the
ordinance is not to make the city money, but instead to keep the police
department organized, and insure that all non-consensual tows are
registered.
City officials say the
ordinance will likely be passed sometime next week.
The $20 will come
directly out of the pocket of the city's contract towing company, which
translates into a price increase for the vehicle owners that redeem
their vehicle, and a loss for the towing company for the vehicles that
go unredeemed.
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City Clears 836 Junk Cars From Streets
Feb 13, 2004 |
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CALIFORNIA
-- Police towed so many abandoned cars in "Operation Clean
Sweep" that crews ran out of storage room, so space was leased in a
lot next to Oakland Mayor Jerry Brown's downtown digs.
"Our goal was
1,000 cars," said Deputy Police Chief Peter Dunbar on Wednesday.
"But we had to stop at 836."
The cost of the
operation, which began Saturday and ended Wednesday, was funded by the
state Abandoned Vehicle Abatement Program. Vehicle registration fees
fund the program.
On Wednesday, police
held a press conference at the storage yard owned by A&B Auto in the
8700 block of G Street in East Oakland. Between 2,500 and 3,000 cars --
most from Oakland streets -- are there now, according to Bob Conner of
A&B Auto, who noted many of the cars often arrive in bad shape.
One of the newly towed
cars, a badly charred Mustang GT, had a missing Vehicle Identification
Number, a telltale sign that it could have been stolen and stripped,
police said.
City Councilmember Desley Brooks (Eastmont-Seminary) asked for the
crackdown after hearing complaints from residents about too many
abandoned cars that were a blight on their streets.
Cars were targeted if
they had been left on the streets for at least three days.
Many of the owners had
not registered their vehicles in over six months or had more than five
unpaid parking tickets.
A downtown lot in the
2700 block of Telegraph Avenue was used to house the overflow. The lot
is adjacent to the mayor's loft.
Lt. Dave Kozicki said
cars left on the streets are often used for prostitution, or to hide
weapons and drugs, or dump garbage and even hazardous waste.
"We went out to
get as many abandoned cars as possible, and we also went after cars that
had not been registered, and persons who had not paid parking tickets in
a long time," said Kozicki.
Towing cars not only
prevents future crimes but improves the quality of life in
neighborhoods, police said.
The towed cars also
are expected to bring in $150,000 in unpaid parking tickets. Police also
wrote 240 tickets under a new city ordinance that fines owners $250 for
leaving vehicles on streets, Kozicki said.
Working with A&B
Auto, the company which contracts with Oakland to tow vehicles, police
said 200 cars were removed from Brooks' district alone.
Dunbar said police
towed nearly 11,000 vehicles from city streets last year. However, that
number will likely be reduced by half this year because budget cuts
trimmed staff by 50 percent.
Some cars will be sold
for scrap metal or parts can be sold, others will be auctioned by
A&B Auto.
We are not going to
stop ... we tow about 90 cars a day, said Kozicki. (Chauncey Bailey - Alameda
Times-Star)
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Tow Operator Sentenced for Overcharging
Feb 13, 2004 |
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NEBRASKA
-- A judge is sending a strong message while sending a metro tow truck
operator to jail. Scott Brown is facing 180 days for charging excessive
fees.
Brown faced two
counts of Unlawful Towing Fees and two counts of Towing Fees Exceeding
the Maximum. In handing down sentence,
Judge Lyn White said that Brown has displayed a pattern of dishonesty.
A handcuffed Brown,
leaving court after sentencing said, "I don't think the sentence
fits the crime."
But three of
Brown's victims think the fit is just fine. Shannan
Garcia tells us, "I think it's wrong to victimize people who are
just out to have a good time." That
"good time" road led to a downtown restaurant last July.
Brown's company,
Patriotic Towing, was towing cars from there and bills show that he
charged more than the $170 maximum allowed under city ordinance. Jenifer
Aveni and Scott O'Connor paid $224.70.
Jenifer says,
"Restitution would be nice. I feel like we were extremely
overcharged for our car maybe sitting there six hours."
O'Connor weighed the
sentence, saying, "Six months in jail; hope it's worth it to him.
We contacted him, let him know we were upset and we thought what he was
doing was illegal and he refused to give the money back and fought with
us. So, I'm totally happy."
Brown says he's made
changes in the way his company operates and that he plans to appeal the
sentence.
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Professional Towing Operators in Ontario Fear
Economic Ruin
Feb 13, 2004 |
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CANADA
-- Canada has a new national towing association and its breaking ground
in the province of Ontario. The association has initiated a complaint to
the Financial Services Commission and the Legislative Assembly
concerning the provinces agenda to reduce consumer insurance rates in
the province by reducing the amount paid to towing firms. Effective
April 01, 2004, the province has plans to cap the amount paid to towing
companies buy insurers to $300 for towing and storage of vehicles
removed from motor vehicle collisions.
The Professional Tow
and Recovery Operators of Canada say the regulation is unfair to
consumers who pay absorbent insurance rates and many insured motorists
will have to start paying for collision cleanup services directly out of
their own pockets.
For years government
officials have been raving about towing and storage cost to the media
and have been famous for flexing their muscle with tow firms and
bragging about cracking down on scrupulous tow operators. Yet government
reports fail to mention the many services a towing firm must pay some
municipalities before removing a vehicle from a collision scene.
Since legislative
amendments were made to the Municipal Act 2001, giving municipalities
the authority to regulate towing services and their operators, towing
firms have been plagued with absorbent licensing fees for operators and
equipment. In some places they must pay the municipality a kick back for
every tow that is dispatched by the police services. In Brampton, if the
customers choice of repair facility is closed when a vehicle is towed
the tower must tow it for no-charge the next day. You don’t see the
city doing this to other industries. If I take a cab to Zellers and it’s
closed, I certainly have to pay the cab driver to take me back home and
pay him again the next day if he provides another service.
Some municipalities
are charging towing companies for traffic control if they have to stay
on scene to direct traffic while the tow truck recovers a vehicle from a
collision. This can cost the towing company as much as $450. For one
hour of service.
It is out of pocket
expenses like the above that appear to the public that the professional
towing and recovery firms are charging excessive rates for the towing,
recovery and storage of motor vehicles from accident scenes. Elected
officials, insurance and consumers have always gone to the media with
the impression that all associated cost of inflated tow invoices are the
direct result of the towing and recovery industry. This is not true. The
fact of the matter is the government is utilizing towing firms for their
own private collection agency to charge and collect for municipal
services that are provided to motorists at accident scenes.
Tow operators in
Ontario say enough is enough. Many tow operators invest heavily in
equipment and have certified personnel that risk their lives everyday
while working with police and fire officials to clear the scene of an
accident. They provide an essential public service in assisting to keep
our roadways free from obstruction for the safety of other motorist.
Ambulance, fire services and municipalities are paid handsomely for
their services and equipment, yet the government wants private small
business who actually do the cleanup and removal to absorb most of the
cost associated with removing wrecked vehicles from the provinces
highways.
Debates in recent
years of the Legislative Assembly have continuously criticized tow
operators for taking advantage of consumers. It has been stated, when
motor vehicle collisions take place tow truck operators are like
vultures and regulations are required for a few bad apples.
Historically, the
problem of wreck chasing has been a problem in Toronto and surrounding
areas. This practice is something that has been encouraged by police
officials because it provides a quicker means of clearing obstruction
for a highway.
Wreck chasers are an
embarrassment to our industry. In fact, they are blight on an industry
that has set very high standards for itself. They are often improperly
equipped, poorly trained, ignorant of liability and other statutory
requirements and only concerned with “snatching” a wrecked vehicle
or disabled vehicle before a professional operator is ordered to the
scene.
It seems unfair to tow
operators the government would put their backs against the wall and
punish honest, professional business people, as well as consumers for a
few bad apples. Not every accident happens at an intersection in Toronto
where a tow truck backs up and goes. Many accidents require specialized
equipment, with a certified operator who has the knowledge to deal with
challenging situations. The association hopes the Minister will
reconsider his decision to limit the amount paid to the towing firm for
consumers before implementing any changes. (Heather Llewellyn - The
Professional Tow and Recovery Operators of Canada)
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International Announces Down Payment Match Program
Feb 9, 2004 |
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ILLINOIS
-- Helping customers prepare their businesses for expected industry
growth in 2004, International Truck and Engine Corporation today
announced a ”Down Payment Match” program with the purchase of an
eligible International® truck or tractor.
The new
International® “Down Payment Match” program offers customers up to
$2,000 toward their down payment on eligible new International® 4000,
5000i, 7000, 8000 or 9000i Series trucks. The program is valid on up to
10 vehicles per customer and is available through International dealers
until April 15, 2004.
Michael Cancelliere,
vice president of North American sales for the Truck Group at
International Truck and Engine Corporation, said the program is designed
to help truck owners position themselves for success in the new calendar
year.
“Customers are
nearly unanimous in their optimism about a return to healthier business
profits in the coming year,” said Cancelliere. “As a result, many
are seeking to replace older vehicles or expand their capacity to handle
projected increases in activity. This program offers a way for
International customers to fulfill their fleet requirements while saving
cash for other expenses.”
In addition, the “Down
Payment Match” program includes additional purchase credits available
for qualified customers. Buyers of International 4000 or 7000 Series
trucks who select the Diamond LogicTM Exhaust Brake or Diamond Logic™
Engine Brake options recently introduced in the new, 2004
International® DT 466 diesel engine will earn an invoice credit of
$300. Likewise, those customers selecting a Cummins ISM or ISX engine in
International 5000i, 7000, 8000 or 9000i Series orders earn an invoice
credit of $500.
Vehicles built with
Cummins ISM or ISX engines also receive a three-year, 300,000-mile
protection plan with a limited extended engine warranty at no extra
charge.
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Transportation
Secretary Vows No New Fuel Tax
Feb 9, 2004 |
|
WASHINGTON
D.C. -- The fight this week over the transportation budget and the fuel
tax has ratcheted up as Transportation Secretary Mineta vowed that
President Bush would veto any legislation that included a higher fuel
tax.
A Senate Committee
tried to placate the administration by proposing to place $35 billion
into the Highway Trust Fund through what one Senator called “illusory”
accounting but others see as sound accounting and a way to pay for the
bill instead of raising fuel taxes.
In a letter to House
and Senate leadership, Mineta said that transportation infrastructure
spending should not rely on an increase in gas or other federal taxes
and that spending should be financed from the Highway Trust Fund.
Mineta’s letter was
prompted by a Senate vote Monday that proposed spending $311 billion
over six years compared to the Administration's proposed budget of $256
billion.
The Senate’s move
may have showed a softening by some Republicans to a fuel tax increase
with which both parties can agree, but Mineta’s stern warning has put
a damper on this change of heart.
House democrats have
pushed the idea of a fuel tax increase, but Bush and most Republicans
have resisted it.
On Monday, The Senate
Finance Committee proposed adding $35 billion to the Trust Fund by
cracking down on fuel tax fraud and creating a tax credit for the trust
fund to offset an ethanol subsidy. Senator Judd Gregg (R-NH) called the
bill “illusory” and said it would only add to the current deficit.
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City Makes Criminals Pay $500 to Release Impounded
Cars
Feb 9, 2004 |
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ILLINOIS
-- In Hanover Park, two new laws took effect this month that hit drunken
drivers and other offenders in the pocketbook.
One allows the police
department to charge $500 to release a suspect's car. The law applies to
anyone charged with a DUI and to drivers with suspended or revoked
licenses.
The other law allows
the fire department to charge convicted offenders for emergency services
if they cause an accident. It also applies to people convicted of arson.
Kankakee and Waukegan,
which have passed similar ordinances, have collected hundreds of
thousands of dollars in extra revenue and claim to have seen a drop in
the number of accidents.
Hanover Park officials
expect to collect between $100,000 and $150,000 a year from the car
impounds.
The fire department's
prospective restitution fees can't be accurately estimated because the
department doesn't track its DUI responses, Hanover Park Fire Chief
Craig Haigh said. The department responds to a "fair" number
of DUIs, so the department will likely use the new ordinance to recover
costs, he said.
While the money is a
benefit, Hanover Park officials say the ultimate goal is to reduce the
number of DUIs in the village.
But some defense
attorneys question the fairness, effectiveness and legality of the new
car impoundment fees. The fees, they say, punish people before they are
proven guilty.
Hanover Park officials
say the village's home-rule authority and the state vehicle code give it
the right to impose the fees.
As of this month,
drivers must pay Hanover Park $500 before the towing company will
release their impounded vehicles. Drivers who believe they are innocent
can seek an administrative hearing with the village. They'll get a
refund if it's determined the car was impounded unfairly.
The practice leaves a
great deal of discretion to arresting officers to impose fees on someone
who's suspected of a crime but not yet convicted, said Steve Fagan, an
attorney in Des Plaines who defends drunken drivers.
The village has a
vested interest in keeping the fines, so it's like "a fox guarding
the hen house," Fagan said. "It's an excessive amount of money
for somebody who's arrested for a crime but not proven guilty."
The other Hanover Park
ordinance requires a conviction before firefighters can collect costs
incurred when they respond to drunken drivers.
In this, Hanover Park
joins a number of suburban fire departments that request restitution
from drunken drivers, said Charles Smith, a municipal attorney who
represents 10 local suburbs, including Libertyville and Mundelein.
State law caps the
restitution fees at $1,000. Most collections are lower, since drunken
driving responses usually don't involve multiple-car accidents, he said.
Still, while the state
law allows for fire department restitution, it's not as common as it
could be, said Andy Sotiropoulos, an Oak Park attorney whose practice
focuses solely on drunken driving defense.
Sotiropoulos has been
in practice for five years, and in that time only one fire department
ever requested recovery costs from a client at sentencing -- for less
than $100.
He speculates it might
be because most DUI arrests don't involve accidents and, therefore,
don't incur large fees. Even when major crashes occur, departments may
not have the time or resources to follow a conviction through the courts
just to enforce its fees.
Evanston could collect
money from convicted drunken drivers, but it never has, acting Fire
Chief Alan Berkowsky said. Evanston has few serious drunken driving
accidents, so not much money would be recouped, he said. As well,
restitution from drunken driving requires a conviction, which delays
payment and requires departmental resources to track it.
Berkowsky isn't
convinced that demanding restitution from drunken drivers is much of a
deterrent, anyway.
It is a deterrent in
another way, however. The Evanston Fire Department has frequently used
the same law to get money out of contractors who start fires by
accident. The measure is designed to make people more careful, and
Berkowsky said the number of contract fires has gone down about 50
percent since 1996.
Last year alone,
Evanston collected $20,000 in restitution fees from fires, he said.
Kankakee and Waukegan
have realized this benefit, also, particularly the revenue from car
impound ordinances.
In 2002, roughly 1,000
vehicles were impounded in Kankakee. More than half were reclaimed for a
$500 fee, bringing in $265,000.
That same year,
Waukegan towed 6,830 vehicles. Fewer than 1,000 involved drunken
drivers; the other offenses were driving without insurance, driving on a
suspended or revoked license, or being charged with a crime involving
narcotics and or prostitution. More than 3,800 people paid to retrieve
their cars, amounting to more than $1.9 million.
Both towns have seen
drops in the accident rates since adopting the laws just a few years
ago, Hanover Park Police Chief Ron Moser said.
Since 2000, the
accident rate in Kankakee has dropped 18 percent. In Waukegan, reported
accidents dropped by 7 percent from the time the law was enacted in 2002
to a year later -- 2,858 crashes down to 2,657.
"The money is
immaterial," Waukegan Mayor Richard Hyde said. "If it was $1
or $100 million, it wouldn't matter. We didn't do it for the money. We
want to get them off the road."
Mothers Against Drunk
Driving supports the financial penalties, said George Heroux, an
attorney for MADD's Illinois chapter. Any law that makes people think
twice about drinking and driving is good, he said.
He said there's no
hard evidence that such laws prevent drunken driving. But anecdotally,
anything helps, he said.
"It's a tough day
for a drunk driver, and that's the way we want it to be," Heroux
said.
For families like the
Funks and for people like Marjorie Bossow, whose sister was killed by a
drunken driver on July 31, the municipal fees and costs are a small
price compared to what the victims paid.
Bossow believes
whether or not the rules deter people from drinking and driving, it's
the principle that matters.
"If they are
responsible for this accident, they should pay for it," said Bossow,
who lives in Villa Park.
"He chose to
drink and drive and he hit somebody. He deserves to pay for what he
did." (Sue Ter Maat - Chicago's Daily Herald)
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NJ Banning Cell
Phone Use While Driving
Feb 2, 2004 |
|
NEW
JERSEY -- New Jersey Gov. James McGreevey is expected to sign a bill
that will make New Jersey the second state to ban handheld cell phone
use while driving.
The bill specifies
that law is only enforceable if a law enforcement officer stops a driver
for another offense, such as a traffic violation, according to the state
assembly’s website. Tickets are $100 to $250; the driver loses no
points off his driver’s license for the offense.
The law allows drivers
to use a handheld cell while driving in an emergency. It also permits
police and other emergency workers to use handheld phones while on duty.
The assembly passed
the ban 65-9 on Jan. 12, with nine members abstaining. In 2002, the
Senate unanimously passed a ban as well.
New York passed a
similar law in 2001 that fines first-time violators $100.
McGreevey has strongly
supported the ban. In a Dec. 15 press release, the Democrat governor
cites a 2002 Quinnipiac University poll indicating that 85 percent of
state voters supported a handheld cell phone ban.
A year ago, U.S. Sen.
Jon Corzine introduced a bill to ban cell phone use while driving. The
New Jersey democrat’s bill was immediately referred to the Committee
on Environment and Public Works, where it remains.
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Washington's Report-of-Sale System is Easy Target for
Fraud
Feb 2, 2004 |
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WASHINGTON
-- Washington state's report-of-sale system was created to keep track of
vehicles and owners when a vehicle is sold, but crooks are using it to
shake their legal responsibility and cause trouble for others.
The state of
Washington attaches a "sellers report of sale" form to every
vehicle title they issue, so sellers can easily provide the state with
the vehicle purchasers information at the time of sale. You can even
file your report-of-sale online at the Department of Licensing's
Website.
This report-of-sale
form becomes prima facie proof that the vehicle was sold to the party
listed on the form and that the previous owner is no longer responsible
for the vehicle.
Herein lies the
problem; anybody can go online and fill out the report-of-sale form and
list whomever they like as the vehicles new, responsible party. The
report-of-sale form has absolutely no safeguards against fraudulent
information. The paper version of the form only requires the signature
of the seller and if you fill out the form online, even that is not
required.
Unfortunately, crooks
allover the state have quickly learned how to use the report-of-sale
system to shake their responsibility for impounded cars.
Washington's laws
provide that a vehicles previous owner is released from any liability
arising from the vehicle if the "sellers report of sale" is
filed within five days from the date of purchase, and according to the
falsified form it was.
But, the system is
being abused in two ways.
First, vehicle sellers
are not filing the report-of-sale until they are notified that the car
they sold has been impounded and they are liable for the towing fees.
While the law says the report-of-sale must be filed within five days of
the date of purchase, the Department of Licensing will accept it at ANY
time, even if it's the day after the vehicle was impounded. In fact, in
at least one case, a Department of Licensing employee backdated the report
so as to meet the 5 day deadline.
The second and most
blatant abuse is when a vehicles owner files a report-of-sale form,
which lists the impounding towing company as the new owner. In fact,
absolutely anyone could be listed as the new owner and person responsible
for the vehicle on the report-of-sale form because they are no
safeguards in place to verify the integrity of this information.
Now that the
report-of-sale system has gone online, a person armed with the license
plate number of a vehicle and the name of the owner could file an online
report of sale, which legally makes whomever they list responsible for
the vehicle.
The added time, labor,
and legal fees that towing companies must invest to work through these
falsified report-of-sale documents is costing a lot of money and
aggravation.
The Independent Towers
of Washington is working with the Department of Licensing to change the
system or get safeguards added that would prevent this type of abuse,
but so far, the Department of Licensing has made no visible effort to
remedy the problem.
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Towing Companies Say AAA is Not Paying Enough
Feb 2, 2004 |
|
WASHINGTON
-- Towing companies in Washington have been going through a rough time
lately with the WSP performing less impounds, insurance costs
skyrocketing, and the price of diesel higher than ever.
But some towing
companies who contract with AAA say they face yet another burden, that
is the amazingly low price that they get paid for AAA motorclub tows.
AAA motorclub has
approx 820,000 motorclub members in Washington State. Those members pay
$52 to $120 a year to be serviced when they happen to break down on the
highway, or find their battery dead on a wintry day.
What the average AAA
member does not know is that of the AAA vendors we interviewed, AAA only
pays $15-$21 for responding to these calls and towing them up to 10
miles.
Many towing companies
in Washington have been trying to get a rate increase from AAA Motorclub
for a long time with no success. Many of the tow operators we talked to
said that AAA actually threatened to give their AAA service area to
their competitor when they approached AAA about a small rate increase.
The tow companies
admit that AAA tows by themselves are not profitable; therefore they are
forced to perform these low paying calls in route to, or in route from,
normal tow calls.
According to those
same tow operators, AAA's other excuse for not giving tow operators a
raise was the lack of money. So how much does AAA Washington make from
it's motorclub members? We decided to find out.
According to AAA's
newsletter, they have 820,000 members in Washington State, and according
to local vendors, most of those members are AAA Plus ($84) members. In
the interest of fairness we'll split that with the AAA Basic ($52)
member and we'll say that AAA gets an average of $68 per member, per
year.
Based on that, AAA is
collecting $55,760,000 in motorclub fee revenue. This does not include
revenue from the AAA Plus RV members, the highest price AAA membership,
at all.
So, how much of that
is paid to the vendors? You would think a lot, but that's not the case.
The company we
profiled performs about 2400 AAA calls a year; AAA pays them about
$76,800 to $96,000 (depending on whether they qualify for the bonus) for
performing those calls. This works out to $32-$40 per call. That's
$32-$40 whether they perform a jumpstart down the road, or deliver a
pickup truck to an auto shop 100 miles away.
The tow companies say
this is simply not enough and AAA knows it.
They say that AAA is
taking advantage of towing companies who have not "run the
numbers" and figured out the actual profit involved, by working the
tow companies' fear of giving business to their competitor.
Many companies say
they have "run the numbers" and have figured out that it would
actually be to their benefit to let a competitor take the contract
instead of "bleeding money" like they are now.
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