Mayor Mamdani, DCWP Sue Predatory Tow Truck Operator for Junk Fees, Overcharging Customers and Other Unlawful Practices

March 4, 2026

Mayor Mamdani, Commissioner Levine vow full restitution for New Yorkers ripped off by Instant Recovery Towing

NEW YORK – Today, Mayor Zohran Kwame Mamdani and the New York City Department of Consumer and Worker Protection (DCWP) announced a lawsuit against Instant Recovery Corp., a Bronx-based tow truck operator, for allegedly engaging in predatory practices and repeatedly violating City law.

After receiving a high volume of complaints, DCWP launched an investigation that found Instant Recovery consistently charged illegal fees, overbilled customers and used other unlawful tactics to exploit New Yorkers.

“Tow trucks often meet New Yorkers on their worst days — after an accident or a breakdown,” said Mayor Mamdani. “Instead of offering help, companies like Instant Recovery have taken advantage of people when they need help most, extorting them with price gouging, hidden fees and coercive charges. Today, we’re fighting back — demanding full restitution for every New Yorker harmed and making clear to the entire industry: if you prey on our neighbors and ignore the law, we will hold you accountable.”

DCWP is seeking full restitution for affected consumers, civil penalties for over a thousand violations and the revocation of the company’s tow truck license. Last week, DCWP also conducted a compliance blitz, issuing warnings to more than 300 tow truck operators citywide to reinforce compliance with towing and booting laws.

“Instant Recovery's pattern of predatory behavior of bogus fees, cash-only demands and refusal to provide receipts is exactly the kind of consumer abuse this administration will not tolerate,” said Deputy Mayor for Economic Justice Julie Su. “We are pursuing this case without fear or favor and fighting to return every dollar owed to New Yorkers.”

“From dolly and special tow fees to overcharging for storage and drop fees, Instant Recovery treated the law as optional,” said Commissioner Sam Levine. “Our lawsuit puts the entire industry on notice: DCWP is watching, and we will act.”

Details of the Case

Instant Recovery has operated since November 2024, primarily in the Bronx. DCWP received a high volume of consumer complaints almost immediately after the company began operating, including:

Charging more than the legally permitted amounts for tow, drop and storage fees.
Conducting illegal tows.
Forcing consumers to pay in cash.
Refusing to provide receipts.

DCWP Actions to Crack Down on Junk Fees

Under Mayor Mamdani’s Executive Order 09, DCWP has led a citywide crackdown on junk fees that inflate costs for consumers and undercut honest businesses.

In January, the Mamdani Administration issued a final rule prohibiting hotels from charging excessive “destination” or “resort” fees and banning hidden credit card holds. DCWP also filed a landmark lawsuit against solar panel installation company Radiant Solar and its owner for deceiving consumers and embedding undisclosed “dealer fees,” seeking millions in civil penalties and restitution.

Following the launch of the City’s annual Free Tax Prep initiative, DCWP began a citywide sweep of paid tax preparers to ensure compliance with laws prohibiting illegal overcharging and hidden fees. The agency also continued its “Fee Free February” enforcement actions targeting predatory employment agencies.

DCWP will continue aggressive enforcement across industries to root out junk fees and protect working New Yorkers.

Towing Services in New York City

DCWP licenses businesses that perform “non-consensual” tows, including towing cars:

Blocking private driveways.
Parked on private property including private parking lots.
Immobilized after an accident.
Stolen, abandoned, or broken down.

Consumers whose vehicles are being towed in these circumstances should check a company’s license status online or call 311 to confirm the operator is licensed. Additional information is available in DCWP’s Towing Services Guide.

Vehicles may also be towed by government agencies, including the NYPD, the City marshal or the sheriff. Information about vehicles towed by law enforcement is available through the New York City Department of Finance. DCWP regulates the City's Directed Accident Towing Program (DARP) and Rotation Tow Program (ROTOW), which oversee accident, abandoned and driveway-blocking tows. The agency also licenses businesses that boot vehicles on private property. Consumers can verify a booting company’s license or file a complaint by visiting nyc.gov/dcwp or calling 311.

The NYC Department of Consumer and Worker Protection (DCWP) is the nation’s leading municipal enforcement agency charged with delivering economic justice. DCWP leverages its authority to bring New Yorkers real economic relief and protect them from predatory, deceptive, and unfair practices that violate their rights as consumers and workers. This includes pioneering cutting-edge protections, such as the City’s Consumer Protection Law, Protected Time Off Law, Fair Workweek Law, and Delivery Worker Laws, including the Minimum Pay Rate for delivery workers. Through licensing more than 45,000 businesses in over 45 industries, DCWP ensures fair competition and a level playing field for responsible small businesses that are integral to New York City’s vibrant communities. DCWP also provides essential services such as free tax preparation and financial counseling to ensure New Yorkers keep more of what they earn and can plan for their futures. DCWP is committed to making sure New York City is a fairer, more affordable place to live. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp, sign up for its newsletter, or follow on its social media sites, X, Facebook, Instagram, and YouTube.

Media Contact:
press@dcwp.nyc.gov
(212) 436-0042