Penalty Amount
$65,000
Connecticut Attorney General William Tong announced a $65,000 settlement with Hilario Truck Center and Hilario’s Service Center for illegally collecting junk fees such as PPE fees, administrative fees, and fuel surcharges during police-ordered tows. The settlement requires the companies to pay $10,000 to the state and provide refunds to eligible consumers who paid these unauthorized fees between 2019 and 2024.
The settlement requires Hilario’s to pay $65,000, including $10,000 to the state and refunds to eligible consumers, and to cease charging illegal junk fees such as PPE fees, administrative fees, and fuel surcharges for police-ordered tows.
In-house legal teams should review all vendor and service agreements with towing and wrecking companies, particularly those providing services for law enforcement or private property tows. Key clauses to examine include the fee schedule and pricing structure to ensure compliance with state regulations requiring all-inclusive, tightly regulated tow fees; provisions prohibiting unauthorized or 'junk' fees such as PPE, administrative, or fuel surcharges; transparency requirements for fee disclosure; and refund or restitution obligations for overcharges. Contracts may need amendments to explicitly forbid additional fees beyond the state-mandated rate, incorporate audit rights to verify fee compliance, and align with state consumer protection statutes to avoid liability for illegal fee practices.
Entity
Hilario Truck Center and Hilario’s Service Center
Also known as: Hilario's Towing
Industry
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$400.0M
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