NYC DCWP Sues Tow Truck Operator for Alleged Junk Fees

On May 4, 2026, the New York City Department of Consumer and Worker Protection (DCWP) announced a lawsuit against Instant Recovery Corp., a Bronx-based tow truck operator, for allegedly engaging in predatory practices and purportedly repeatedly violating City law.

According to the announcement, the company received “a high volume of complaints” and “DCWP launched an investigation that found Instant Recovery consistently charged illegal fees, overbilled customers and used other unlawful tactics to exploit New Yorkers.”

As alleged by the DCWP, Instant Recovery:

  • Charged more than the legally permitted amounts for tow, drop and storage fees.
  • Conducted illegal tows.
  • Forced consumers to pay in cash.
  • Refused to provide receipts.

“Tow trucks often meet New Yorkers on their worst days — after an accident or a breakdown,” said Mayor Mamdani. “Instead of offering help, companies like Instant Recovery have taken advantage of people when they need help most, extorting them with price gouging, hidden fees and coercive charges. Today, we’re fighting back — demanding full restitution for every New Yorker harmed and making clear to the entire industry: if you prey on our neighbors and ignore the law, we will hold you accountable.”…

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