Colorado’s investigation into illegal towing scheme leads to $1M settlement

(The Center Square) – A towing company allegedly operating an illegal towing scheme targeting consumers has agreed to a $1 million settlement with the Colorado attorney general’s office.

An investigation into Wyatts Towing, and its parent company Towing Holdings, found that dating back to 2019 the company towed vehicles without valid permits, illegally charged fees and kept funds from sold cars unlawfully.

“Wyatts Towing used deceptive practices and broke the law to make a quick buck,” Attorney General Phil Weiser said in a statement. “They are now taking responsibility and cooperating to resolve this case.”

The company has drawn hundreds of consumer complaints including one from state lawmaker.

According to Weiser’s office, parking lot owners would contract Wyatts to monitor lots and tow vehicles that weren’t parked correctly. Wyatts also paid some tow drivers commission based on the number of cars towed, part of a “pay structure [that] incentivizes employees to identify and tow as many vehicles as possible.”

The settlement also cites two occasions in 2022 when Wyatts illegally towed hundred vehicles with lapsed permits, collecting over $100,000 in towing fees and then auctioning off the towed vehicles.

“While consumers who knew to complain got their money back, those without the time, training, or awareness to act as their own lawyers got cheated out of their hard-earned money,” Weiser said. “Thanks to this settlement, which will reform how Wyatts operates, future consumers will be treated more fairly.”

As part of the settlement, Wyatts won’t collect $236,000 in outstanding debt from consumers and will pay $764,000 for the state to pay restitution.

The company denies any wrongdoing or liability stemming from the allegation, according to the settlement.

Weiser added his office will work with lawmakers to improve consumer protection laws.