NYC Sues Bronx Tow Firm, Puts Industry on Notice
New York City officials have filed a lawsuit against a Bronx towing company accused of exploiting motorists with illegal fees and other predatory practices.
Mayor Zohran Mamdani and the New York City Department of Consumer and Worker Protection (DCWP) announced legal action against Instant Recovery Corp. after receiving a surge of complaints from drivers. Investigators say the company routinely overcharged motorists, demanded cash payments and refused to provide receipts.
City officials allege the company overcharged at least 444 drivers. Through an administrative petition, DCWP is seeking $1.7 million in penalties and roughly $33,000 in restitution for affected customers. The agency is also attempting to revoke the company’s towing license.
“Instant Recovery refuses to follow the rules, ripping off New Yorkers by overcharging them, slapping on illegal yard or dolly fees, and forcing them to pay in cash,” said DCWP Commissioner Sam Levine.
As part of a broader enforcement push, DCWP has sent warning letters to more than 300 licensed tow truck companies across the five boroughs, putting the industry on notice.
Meanwhile, the Empire State Towing and Recovery Association argues the city’s regulated towing rates are too low to sustain legitimate businesses and said it is considering legal action.
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