Philadelphia has tentatively settled a years-long lawsuit over the city’s notorious “courtesy tow” practice, agreeing to pay dozens of drivers and to overhaul how relocated vehicles are tracked. Under the proposed deal, the city would have to roll out a public, searchable tracking system, give earlier notice before relocation tows and put identifying stickers on cars so moved vehicles are not ticketed. The agreement still needs a federal judge’s sign-off before the changes and payouts actually kick in.
According to CBS Philadelphia, the settlement, filed in federal court on Feb. 19, 2026, would provide $750,000 to the 36 drivers who brought the case. The outlet reports that the city agreed to use “reasonable best efforts” to keep track of courtesy-towed vehicles, although a judge still has to approve the agreement before it becomes final.
What the deal requires
Under terms described by The Philadelphia Inquirer, tow operators who participate in the city’s relocation program would be required to log drop-off locations using handheld devices that feed into a public website. The settlement also calls for more advance notice before relocation tows and for identifying stickers to be placed on relocated cars so they are not ticketed even if they end up in metered or restricted spots. “They will have a handheld device to record where they are deposited and that will go to a website,” plaintiffs’ attorney Joseph Kohn told the paper.
Why drivers say change is overdue
The Philadelphia Parking Authority already runs a searchable tool for vehicles it tows, and its website links drivers to a towed-vehicle search along with instructions for recovering impounded cars. As CBS Philadelphia has noted, courtesy tows can be carried out by police, the PPA or private tow companies, a mix that has historically left owners hunting for missing cars for days or weeks…