New Hampshire bill aims to protect drivers from predatory towing and license suspensions

In a recent meeting of the New Hampshire House Transportation Committee, lawmakers discussed a proposed bill aimed at addressing the financial burdens placed on low to moderate-income individuals following vehicle accidents. The bill seeks to amend current laws that allow towing companies to charge exorbitant fees for towing and storage, often leaving victims of accidents in precarious financial situations.

The discussion highlighted a troubling scenario where individuals, often without fault in an accident, find themselves unable to retrieve their totaled vehicles due to high towing and storage fees. Under current law, if a vehicle is towed, the owner has just 14 days to claim it before the towing company can sell it to recoup costs. This situation is particularly dire for those without insurance, as they may face hundreds to thousands of dollars in fees for services they did not choose.

One representative emphasized that the current system effectively punishes individuals for circumstances beyond their control, equating it to a form of debtors' prison. The law allows the Department of Motor Vehicles (DMV) to suspend a person's driver's license if they fail to pay these fees, despite the fact that the individual had no say in the choice of towing company or the associated costs. This raises significant concerns about fairness and the role of government in enforcing private debts.

The committee also noted that the National Insurance Crime Bureau has identified predatory practices among towing companies, which exploit the situation by charging excessive fees. The proposed bill aims to separate the privilege of driving from private debts, ensuring that individuals are not penalized with license suspensions due to financial hardships related to towing fees.

In addition to the main topic, committee members raised questions about the specifics of the bill, including the definition of abandonment in relation to vehicles and the timeline for towing companies to claim ownership of vehicles. The discussions underscored the need for a more equitable system that protects vulnerable individuals from being trapped in a cycle of debt due to unforeseen circumstances.

As the committee continues to deliberate on the bill, the implications of these discussions could lead to significant changes in how towing practices are regulated in New Hampshire, potentially providing relief for those who find themselves in difficult situations after accidents. The outcome of this legislation will be closely watched, as it addresses broader issues of economic justice and the responsibilities of private companies in the towing industry.