Bureau of Automotive Repair reports that LA Custom Collision engaged in predatory towing practices and charged up to $4,000 for four hours of storage
Sacramento, Calif.—The state license of Los Angeles-based automotive repair dealer, LA Custom Collision, has been suspended after an investigation by the Bureau of Automotive Repair (BAR) revealed the business was engaging in fraudulent, predatory and deceptive business practices.
Following the investigation, BAR filed a petition for an Interim Suspension Order (ISO) to prevent further consumer harm. On June 19, an Administrative Law Judge issued a Ruling and Order granting BAR’s petition.
The suspension took effect immediately and LA Custom Collision is prohibited from doing business or providing services to consumers. The suspension will remain in effect until the pending disciplinary action against the licensee is resolved.
Consumer complaints prompted the investigation, which uncovered an organized predatory towing scheme, often called “bandit towing,” and the charging of illegal vehicle storage fees. LA Custom Collision worked with tow truck operators in the scheme, listening to police radio calls and showing up at crash scenes, convincing them to have their vehicles towed to their shop.
Consumers reported being pressured or misled into signing documents claiming towing would be free, then later being surprised with fees and bills for thousands of dollars. In some cases, insurance companies ruled vehicles total losses because the towing and storage cost were so high that repairs no longer made sense.
The shop then allegedly refused to release the vehicles until the consumers or their insurance companies paid the charges. In one case, the shop demanded more than $4,000 in storage fees for a vehicle that had been stored for only a few hours.
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