Towing Impound Fee Dispute Letters
California Vehicle Code regulates towing and impound operations. When tow companies violate notice requirements, charge excessive fees, or wrongfully tow your vehicle, demand letters and administrative challenges provide relief.
California Vehicle Code §§22651 and 22658 regulate when vehicles can be towed and what fees tow companies can charge. The California Highway Patrol sets maximum tow and storage rates. Violations of these rules give you grounds to demand fee reductions or refunds.
Private property owners and tow companies must follow strict rules when towing vehicles from private property. Required elements include:
- Sign height: At least 17 inches high by 22 inches wide
- Letter size: Minimum 1-inch lettering for key information
- Content required: “Unauthorized vehicles will be towed at owner’s expense,” tow company name and phone number, and location where vehicles are stored
- Visibility: Signs must be clearly visible at all entrances to the property
- Language: In English; additional languages recommended in multilingual areas
If signage doesn’t meet these requirements, the tow may be invalid and you can demand a full refund.
If you arrive while your car is being towed or immediately after, photograph:
- Where your car was parked (showing it was legal or you had permission)
- All parking signs (or lack thereof)
- The tow truck and company name
- Any damage to your vehicle
- Date and time stamps (most phones add this automatically)
These photos are critical evidence for your demand letter and any hearing.
The California Highway Patrol sets maximum rates tow companies can charge. These vary by county and type of tow. As of 2024, typical maximums include:
- Basic tow (light duty): $150-$250 depending on county
- Mileage beyond base: $3-$7 per mile
- Daily storage: $30-$75 per day depending on county
- Gate fee (after-hours release): $50-$100
- Administrative fee: $50-$75
If the tow company charged more than these maximums, you can demand a refund of the excess. Contact your local CHP office or check the CHP website for current maximum rates in your county.
When police order your vehicle towed (DUI arrest, expired registration, blocking traffic), you have fewer grounds to challenge the tow itself but can still:
- Challenge excessive fees beyond CHP maximums
- Request a DMV hearing if the vehicle was impounded for 30 days (DUI, unlicensed driver)
- Demand compensation for tow truck damage
30-day impounds: Vehicle Code §14602.6 allows 30-day impounds for driving without a license or on a suspended license. You can request a DMV hearing within 10 days to challenge the impound. If you win, the tow and storage fees are refunded.
When a property owner or manager requests the tow, you can challenge based on:
- Inadequate signage
- You had permission to park (resident, visitor with parking pass)
- Tow company didn’t wait the required one hour after posting notice (unless blocking driveway/fire lane)
- Property owner or manager didn’t have authority to authorize the tow
Storage fees accrue daily, typically $30-$75 per day. Even if you’re disputing the tow, retrieve your vehicle within 2-3 days to minimize storage charges. You can pay under protest and seek a refund later. Waiting weeks to retrieve your vehicle can result in storage fees exceeding the vehicle’s value.
If your tow company receives a demand letter alleging wrongful towing or excessive fees, responding appropriately protects your CHP operating authority and minimizes liability.
- Pull the tow authorization: Retrieve the property owner’s tow authorization, dispatch log, driver notes, and photos taken at the scene.
- Verify signage compliance: Check that the property had compliant signs at the time of tow (photos in your records).
- Review fee calculation: Confirm your charges were within CHP maximum rates for your county.
- Check for damage claims: Inspect your driver’s pre-tow and post-tow photos. Interview the driver.
- Assess customer’s claim: Is there merit? Did you violate Vehicle Code requirements?
Consider offering a partial or full refund when:
- Your fees genuinely exceeded CHP maximums due to billing error
- Signage at the property was deficient and you can’t prove compliance
- Your driver may have damaged the vehicle and repair costs are reasonable
- The cost of small claims defense exceeds the disputed amount
Customers can file complaints with the California Highway Patrol against your operating authority. Repeated violations—especially excessive fees or operating without proper signage authorizations—can result in suspension or revocation of your tow authority. For disputes under $500, settling quickly often makes business sense to avoid regulatory risk.
Wrongful tow (no authority): 80-100% refund of all tow and storage fees
Excessive fees: Refund of amount exceeding CHP maximums plus 25-50% goodwill reduction
Damage during tow: Repair costs up to $2,000-$5,000 depending on severity and proof
Signage deficiency: 50-75% refund, as courts often find partial fault
I represent both vehicle owners and tow companies in California towing disputes. Most cases involve small claims court or CHP administrative proceedings.
Whether you’re challenging a wrongful tow or defending your company against claims, I can help evaluate your case and develop a strategy.
Schedule ConsultationYes, in most cases. Tow companies can hold your vehicle until you pay. However, pay with a credit card and mark the receipt “paid under protest.” This preserves your right to dispute the charges and seek a refund through a demand letter or small claims court. Retrieve your vehicle quickly to avoid accumulating daily storage fees.
The California Highway Patrol sets maximum rates that vary by county. Typical maximums range from $150-$250 for the base tow, $30-$75 per day for storage, and $50-$100 for gate fees. Check the CHP website or contact your local CHP office for current maximum rates in your county. Any charges above these maximums are illegal and refundable.
Yes. If your vehicle was towed without legal authority, you can sue in small claims court for a refund of all tow and storage fees, plus damages for your time, rental car costs, and any vehicle damage caused by the tow. Most wrongful tow cases are straightforward and resolve quickly in small claims court.