Delaware lawmakers finalize towing legislation with consumer protections and new fee structures

The Delaware House Public Safety and Homeland Security Committee convened on March 18, 2025, to discuss significant updates to towing legislation aimed at enhancing consumer protections. The proposed changes come after extensive collaboration with the Delaware Towing Association and the Department of Justice, addressing previous concerns raised during earlier discussions.

Key provisions of the new legislation include a requirement for photographic evidence to document unauthorized parking before a vehicle can be towed. Additionally, towing companies must obtain written authorization for towing specific vehicles from private parking areas. The legislation sets a maximum towing fee of $2.50 and a daily storage rate of $50, a reduction from the previous cap of $500 for both services.

The bill mandates that towing companies must allow vehicle owners to retrieve personal belongings without charge during normal business hours. If access is needed after hours, a fee of up to $50 may apply. Furthermore, towing companies are required to accept credit cards or provide ATM access at their facilities.

Concerns were raised by some committee members regarding the stipulation that towing companies must be open to the public from 8 AM to 6 PM on weekdays. Critics argue that this regulation imposes undue restrictions on private businesses. However, proponents of the bill emphasized the need for consumer protection, particularly in light of predatory practices observed in the towing industry.

The committee expressed optimism about the bill's potential to improve transparency and fairness in towing practices. With the backing of the towing association and AAA, the legislation is expected to move forward, pending further discussions in the Senate. The committee's efforts reflect a growing commitment to safeguarding consumer rights in Delaware's towing industry.