A California bill would authorize vehicle owners, lienholders, or insurers to petition small claims court to determine whether a vehicle was wrongfully taken or withheld, or whether storage charges are excessive or unreasonable, according to Repairer Driven News. SB 1112 would allow a judge to order the vehicle released on bond. The bill would also prohibit auto body shops, impound yards, and storage facilities from knowingly participating in or profiting from unauthorized or deceptive towing practices.
Operator takeaway
If SB 1112 passes, California storage operators would face judicial review of their fee structures on a per-vehicle basis through small claims court. Operators in California should track this bill and review whether their posted rates and fee documentation would withstand court scrutiny.