California BAR suspends LA license following investigation into predatory towing

The state license of Los Angeles-based automotive repair dealer, LA Custom Collision, has been suspended following an investigation by the Bureau of Automotive Repair (BAR).

BAR fond that the business was engaging in fraudulent, predatory, and deceptive business practices that resulted in consumer harm, according to a BAR press release.

Following its investigation, BAR says it filed a petition for an interim suspension order (ISO) to prevent further consumer harm.

On June 19, an administrative law judge issued a ruling and order granting BAR’s petition.

The suspension took effect immediately and LA Custom Collision is prohibited from doing business or providing services to consumers, the release states. It also states that the suspension will remain in effect until the pending disciplinary action against the business is resolved.

“BAR’s investigation found that not only did the business violate the law, it also violated consumer trust,” BAR states in the release. “Consumer complaints prompted the investigation, which uncovered an organized predatory towing scheme, often called ‘bandit towing,’ and the charging of illegal vehicle storage fees.

“LA Custom Collision worked with tow truck operators in the scheme, listening to police radio calls and showing up at crash scenes without being requested to prey on those involved in the crash by convincing them to have their vehicles towed to LA Custom Collision’s shop.”

BAR adds that consumers who filed complaints with them reported being pressured or misled into signing documents that claimed towing would be free, and then were later surprised with fees and bills for thousands of dollars.

“In some cases, insurance companies ruled vehicles total losses because the towing and storage cost were so high that repairs no longer made sense,” the release states. “The shop then refused to release the vehicles until the consumers or their insurance companies paid the charges. In one case, the shop demanded more than $4,000 in storage fees for a vehicle that had been stored for only a few hours.”

BAR notes in the release that customers should get everything in writing before work at an automotive repair shop is authorized.

“Automotive repair shops must provide a detailed estimate and get your permission before any repairs or services can begin,” BAR states.

When a predatory towing ring was disbanded last year in Southern California, Andrew Batenhorst, who is the manager of Pacific BMW Collision Center, told Repairer Driven News that this type of behavior has persisted for decades.

When asked at the time if proposed regulations from the BAR regarding storage fees were in response to the illegitimate actions, Batenhorst said he believed they were.

The passage of AB1263 in 2024 gave BAR the authority to address storage fees. It also allows BAR to codify its guidance and unify existing laws on the subject. The changes also include teardown disclosures.

During the fourth workshop on the proposed changes, held Jan. 30, 2025, the main concerns voiced were the language causing a cap on storage fees and losing days of storage revenue. Some speakers returned to share those concerns about the newest changes made after previous workshops.