A report by the Public Interest Research Group found that only one-third of states ban incentive payments from towing companies to property owners and law enforcement, creating legal gaps that enable kickback schemes in the remaining two-thirds of the country, according to PIRG. The report recommended that all states prohibit financial incentives for towing referrals.
Operator takeaway
Two-thirds of states do not ban kickback payments for towing referrals — if your state allows property owners or law enforcement to receive financial incentives for directing tows, the system invites the corruption that other states have already banned.