49ºF

State revokes license of towing companies after evidence of fraudulent, inflated charges

HOUSTON – The State of Texas has revoked the license of USA Auto and Stans’ Wreckers – ordering both businesses to cease operations immediately.

The ruling comes after a Channel 2 Investigation into towing companies first exposed in May.

Investigator Amy Davis uncovered allegations of price gouging and illegal billing at the south-side businesses after dozens of complaints from drivers
who were towed under the city’s Safe-Clear Program.

The State Department of Licensing and Regulation said there’s evidence the companies forced drivers to pay unnecessary, fraudulent and grossly inflated charges.

The company’s owner, along with four other employees have all been arrested and charged with organized crime. The city has since canceled its contract with the towing company.