Mayor Zohran Mamdani and the New York City Department of Consumer and Worker Protection filed suit May 4 against Instant Recovery Corp., a Bronx-based tow operator that began operating in November 2024, alleging the company charged more than the legally permitted amounts for tow, drop, and storage fees, conducted unauthorized tows, demanded cash-only payments, and refused to provide receipts, according to natlawreview.com. The city seeks full restitution, civil penalties for more than 1,000 alleged violations of city law, and revocation of the company's tow truck license; Commissioner Sam Levine said 'our lawsuit puts the entire industry on notice.'
Operator takeaway
DCWP is asking for license revocation as a remedy, not just penalties. If you do non-consent or repo work in any major U.S. city, your line-item fee disclosure on every invoice is the easiest place a regulator builds a 1,000-violation count, and the easiest place you defend it.