Court Ruling on Administrative Fees in Vehicle Recovery Invoices
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A Massachusetts court has ruled that the assessment of administrative fees as a percentage of a vehicle recovery invoice violates the Consumer Protection Law.
In a ruling handed down on November 3, 2023, in the case of Commerce Insurance v. Big Wheel Truck Sales, the judge said that the towing company’s 10% fees, “have no relationship to the amount of time spent on administrative time … and are arbitrary and grossly excessive.”
For more on this case, see Michael McGovern’s Legaleze column in the Tow Times January 2024 issue.