With NICB Support Chicago City Council Adopts Ordinance Targeting Predatory Towing

New Ordinance Strengthens Penalties and Accountability to Protect Chicagoans from "Wreck Chasing" and Rogue Towers

OAK BROOK, Ill., April 16, 2025 /PRNewswire/ -- The National Insurance Crime Bureau (NICB), the nation's leading not-for-profit organization exclusively dedicated to identifying, investigating, preventing, and deterring insurance fraud and crime applauds Alderman Gilbert Villegas and the Chicago City Council on today's adoption of a new towing ordinance aimed at predatory towing. NICB helped lead a broad coalition effort directly supporting the strong reforms, which will better protect Chicagoans from rogue towers that have plagued the city for years.

The ordinance, led by Alderman Villegas, unanimously passed the Chicago City Council's Committee on License and Consumer Protection on Tuesday, April 8, and was adopted today by the full city council. This ordinance builds upon previous efforts at the City Council, adding strength and deterrence to Chicago's towing regulations.

"Predatory towers are the equivalent of ambulance chasers—often preying on the emotions of drivers who have just been in an accident," said Kyle McCollum, NICB Vice President of Strategy, Policy, and Government Affairs. "We applaud the City of Chicago, its law enforcement and Alderman Villegas for working with NICB to recognize rogue towing as a crime and take significant steps to deter it and finally hold bad actors accountable."

Predatory towing has risen 89 percent across the United States, notably in large cities such as Chicago. Among other reforms, the Chicago ordinance will help consumers hold towing companies accountable for unlawful tactics, enable law enforcement to seize and impound vehicles used to fraudulently tow vehicles and prohibit kickback payments to crash spotters. NICB is working to ensure that similar protections against predatory towers are enacted at the state level in Illinois and across the country.

NICB recommends the following tips for consumers who may need a tow truck:

• If you didn't request it, reject it – If you're in an accident and an unsolicited tow truck company arrives on scene, wait for law enforcement to arrive and request an approved, licensed tower
• Know before you tow – Get all the information you can from the towing service you use after a crash
• Avoid paying cash upfront for a towing service after a crash. Most legitimate towing companies accept credit cards or other forms of payment, and your insurance company may cover the cost of towing if your policy includes that coverage

If you believe you have been a victim of fraud, call NICB at 1-800-TEL-NICB or visit https://www.nicb.org/how-we-help/report-fraud.

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the National Insurance Crime Bureau (NICB) is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations. To learn more, visit NICB.org.

SOURCE National Insurance Crime Bureau (NICB)