NYC sues Bronx towing company over ‘junk fees,’ overcharging and illegal cash-only demands

Mayor Mamdani, DCWP seek restitution and license revocation for Instant Recovery Corp.

New York, NY – Mayor Zohran Kwame Mamdani and the New York City Department of Consumer and Worker Protection (DCWP) announced a lawsuit against Instant Recovery Corp., a Bronx-based towing operator accused of systematically overcharging customers, issuing illegal fees and refusing to comply with city law.

Key Points

  • The city accuses Instant Recovery of charging illegal tow, storage, and drop fees.
  • DCWP says the company demanded cash-only payments and withheld receipts.
  • Officials are seeking full restitution for affected New Yorkers, civil penalties, and license revocation.
  • More than 300 towing companies were warned during a recent compliance blitz.

According to city officials, the investigation began after a flood of consumer complaints about Instant Recovery’s pricing and practices. The agency’s findings allege that the company regularly overbilled for tows, conducted unauthorized removals, and used coercive cash-only policies…

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