Oregon enacts HB 3566 regulating towing fees and owner rights

The Oregon State Legislature introduced House Bill 3566 on February 18, 2025, aiming to reform towing practices and protect vehicle owners from unlawful towing charges. The bill seeks to address growing concerns over the transparency and fairness of towing fees, particularly in cases where vehicles are towed without proper justification.

One of the key provisions of HB 3566 prohibits towing companies from imposing additional fees after a vehicle owner or their insurance company requests the release of a towed vehicle until a detailed statement of charges is provided. This measure is designed to ensure that vehicle owners are fully informed of the costs associated with towing and storage before incurring further charges.

Additionally, the bill empowers vehicle owners whose cars have been unlawfully towed to pursue civil action against towing companies. If successful, plaintiffs can recover both economic and noneconomic damages, including any fees paid and compensation for damages incurred due to the towing. The legislation also stipulates that courts must award reasonable attorney fees to prevailing plaintiffs, making it easier for individuals to seek justice without the burden of legal costs.

Debate surrounding HB 3566 has highlighted concerns from towing companies about potential financial impacts and operational challenges. Critics argue that the bill could lead to increased costs for towing services, which may ultimately be passed on to consumers. Supporters, however, emphasize the need for greater accountability and fairness in the towing industry, particularly for vulnerable vehicle owners who may be unaware of their rights.

The implications of HB 3566 extend beyond individual vehicle owners, as it could reshape the towing landscape in Oregon. By enhancing consumer protections, the bill aims to foster a more equitable environment for vehicle owners while potentially prompting other states to consider similar reforms.

As the legislative process continues, stakeholders from both sides are closely monitoring developments, with discussions expected to intensify as the bill moves through committee hearings and potential amendments. The outcome of HB 3566 could significantly influence towing practices and consumer rights in Oregon, setting a precedent for future legislation in this area.