North Carolina Towing Regulations 2024–2025: Permits, Fees, and Predatory Towing Crackdown
- Randy Dinwiddie
- Jul 18
- 5 min read
The Changing Landscape of Towing Regulations in North Carolina
North Carolina is implementing sweeping changes to its towing industry regulations in 2024-2025, with legislation aimed at combating predatory practices, standardizing fees, and creating oversight that has been lacking for decades. These changes will affect every stakeholder in the towing ecosystem—from operators and property owners to commercial drivers and everyday vehicle owners.
For towing professionals and vehicle owners alike, understanding these regulatory shifts is crucial. Let's dive into the significant changes coming to the Tar Heel State's towing industry.
House Bill 199: The Towing and Recovery Commission
At the center of North Carolina's regulatory overhaul is House Bill 199, which establishes a dedicated Towing and Recovery Commission. This new governing body will fundamentally change how towing operates throughout the state.
Key Components of the Commission:
Statewide Permit System: All towing companies—whether performing consensual or non-consensual tows—will need to obtain annual permits to operate legally.
Standardized Database: The commission will maintain a comprehensive database tracking towed vehicles, making it easier for owners to locate their vehicles.
Complaint Management: A formal system for filing and addressing complaints against towing operators will be implemented.
Fee Regulation: Perhaps most significantly, the commission will establish maximum allowable fees for towing, storage, and related services.
This centralized approach replaces the previous patchwork of local regulations that varied widely across municipalities, creating confusion for both operators and consumers.
New Limits on Towing Practices
The legislation brings significant operational changes that towing companies must adapt to:
Distance Restrictions
Non-consensual tows (those performed without the vehicle owner's permission) will be limited to a maximum distance of 25 miles. This provision directly addresses complaints about vehicles being towed to distant storage lots, making retrieval unnecessarily difficult and expensive.
Signage Requirements
Private property owners wishing to enforce towing must now display clear, prominent signage that includes:
Notification that unauthorized vehicles will be towed
The name and contact information of the towing company
Complete fee information
Hours when vehicles can be retrieved
The signage requirements are designed to eliminate "surprise" tows and ensure vehicle owners have fair warning and clear information if their vehicle is removed.
Occupied Vehicle Protections
The new regulations explicitly prohibit towing vehicles with occupants inside—a practice that, while seemingly obvious, has been reported in some predatory towing cases. This provision includes specific protections for vulnerable individuals, including children, elderly persons, and those with disabilities.
Fee Transparency and Limitations
One of the most consumer-friendly aspects of the new regulations involves towing fees:
Maximum Fee Schedules
The Towing and Recovery Commission will establish maximum allowable fees for:
Basic towing services
Storage (daily rates)
Administrative fees
After-hours retrieval
Special equipment usage
These caps will vary based on vehicle size, region, and other factors, but will provide predictability and prevent price gouging.
Payment Method Requirements
Towing companies must now accept multiple payment methods, including:
Cash
Major credit cards
Debit cards
Mobile payment platforms
Gone are the days of "cash only" policies that created additional hardships for vehicle owners trying to retrieve their property.
Commercial Vehicle Protections (Senate Bill 311)
Commercial drivers receive special protections under Senate Bill 311, which takes effect on December 1, 2025:
Ban on Commercial Vehicle Booting
The bill makes it a Class 2 misdemeanor to boot commercial motor vehicles as a parking enforcement method. Violators face penalties including:
Up to 60 days in jail
Fines up to $1,000
Civil liability for damages
Cargo Return Requirements
Addressing a particularly problematic practice, the new regulations require towing companies to promptly return commercial cargo upon request following non-consensual or law enforcement-directed tows.
Additionally, if a commercial trailer is towed, the towing company must allow for the exchange of a similar working trailer—ensuring that businesses can continue operations while addressing any parking violations.
Addressing Predatory Practices
The legislative push comes after years of complaints about predatory towing practices across North Carolina cities. In Chapel Hill and Carrboro alone, over 50 formal complaints were filed against a single towing company in 2023, highlighting issues like:
Excessive retrieval fees
Difficult-to-find storage lots
Limited retrieval hours
Cash-only payment policies
Inadequate or misleading signage
House Bill 931, titled "End Predatory Towing Fees and Practices," further strengthens consumer protections by requiring:
All towing fees to be "reasonable and disclosed"
Clear notification procedures for vehicle owners
Enhanced storage lot accessibility
Standardized release procedures
Enforcement and Penalties
The new regulatory framework includes meaningful enforcement mechanisms:
Permit Violations
Operating without the required towing permit will be classified as an unfair trade practice under North Carolina law, potentially resulting in:
Civil penalties
Restitution to affected vehicle owners
Possible suspension of towing operations
Signage Violations
Property owners who fail to post required signage but still authorize towing will face similar penalties, creating a dual enforcement system that holds both towing companies and property owners accountable.
Consumer Remedies
Vehicle owners who believe they've been subject to illegal towing practices will have clear avenues for recourse through:
The Towing and Recovery Commission complaint system
Small claims court actions with statutory damages
Potential class action remedies for widespread violations
Impact on Towing Operators
For legitimate towing businesses, these changes bring both challenges and opportunities:
Compliance Costs
Towing operators will need to:
Secure proper permits
Update signage and contracts
Implement new payment systems
Train staff on new requirements
Adjust pricing to comply with fee caps
Competitive Advantages
However, reputable companies that have always operated ethically will benefit from:
A more level playing field as predatory operators are forced to comply or exit
Increased consumer confidence in the industry
Clearer rules that reduce disputes and misunderstandings
Greater protection from liability when following standardized procedures
What Vehicle Owners Should Know
North Carolina drivers should understand their enhanced rights under the new regulations:
Before Parking: Look for clear signage with complete towing information
If Towed: Expect reasonable fees and multiple payment options
Dispute Resolution: Use the commission's complaint system for violations
Documentation: Keep receipts and document any potential violations
Distance Limits: Know that your vehicle cannot be towed more than 25 miles without consent
Future Developments
While House Bill 199 and Senate Bill 311 represent significant progress, additional legislative efforts continue:
HB 1024: Proposes even more specific fee caps based on vehicle type and regional factors
HB 1037: Would implement stricter penalties for unreasonable fees
Local Ordinances: Many municipalities are updating their local towing regulations to align with state changes
Conclusion
North Carolina's towing regulation overhaul represents one of the most comprehensive efforts nationwide to balance legitimate property rights enforcement with consumer protections. By establishing the Towing and Recovery Commission, implementing fee transparency, creating permit requirements, and banning predatory practices, the state is creating a more fair and predictable towing industry.
For towing professionals, these changes necessitate adaptation but ultimately benefit those who have always operated ethically. For vehicle owners, they provide meaningful protections against excessive fees and predatory practices. As these regulations continue to evolve through 2024 and 2025, all stakeholders should stay informed about their rights and responsibilities in this changing landscape.
For the latest updates on towing regulations across the country, visit TowZilla Directory or explore our other resources for towing professionals and vehicle owners.
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