Colorado tow companies can’t make you take out a loan to get your car back, AG says

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Accusations from lawmakers and consumer advocates say that Wyatts Towing, the state's largest tow company, has been asking vehicle owners to apply for loans in order to get their cars back

, which went into effect Aug. 10, 2022, allows individuals to retrieve their cars if they pay 15% of its tow fees upfront, not to exceed $60. The vehicle owner would then be on the hook to repay the rest of the bill over time.Wyatts has rejected people from using this new provision and has charged interest as part of these loans. The agreements also would ask applicants to list their employer, income, rent/mortgage and banking information, The Post found.

The CEO, during a public rulemaking hearing Tuesday in front of an administrative law judge, said Wyatts has lost $150,000 in revenue since the law went into effect. Compulsory loans increase the amount the consumer owes a tow company on top of the towing fee, Blake wrote in the letter. They could also harm someone’s credit score. As a result, the loans “create a mandatory requirement that acts as a barrier to a consumer exercising statutory rights,” he stated.

 

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