After purportedly receiving a high volume of complaints, DCWP states that the agency launched an investigation that allegedly found Instant Recovery consistently charged illegal fees, overbilled customers and used other unlawful tactics to exploit New Yorkers.
“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.”
As set forth in the announcement, DCWP is seeking full restitution for affected consumers, civil penalties for over a thousand purported violations and the revocation of the company’s tow truck license.
The DCWP announced that it has also conducted a compliance sweep, issuing warnings to hundreds of tow truck operators citywide to reinforce compliance with towing and booting laws.
“Instant Recovery’s pattern of predatory behavior of bogus fees, cash-only demands and refusal to provide receipts is exactly the kind of consumer abuse this administration will not tolerate,” said Deputy Mayor for Economic Justice Julie Su. “We are pursuing this case without fear or favor and fighting to return every dollar owed to New Yorkers.”
“From dolly and special tow fees to overcharging for storage and drop fees, Instant Recovery treated the law as optional,” said Commissioner Sam Levine. “Our lawsuit puts the entire industry on notice: DCWP is watching, and we will act.”
Details of the Case
According to the DCWP, Instant Recovery has operated since November 2024, primarily in the Bronx. DCWP allegedly received a high volume of consumer complaints almost immediately after the company began operating including:
- Charging more than the legally permitted amounts for tow, drop and storage fees
- Conducting illegal tows
- Forcing consumers to pay in cash
- Refusing to provide receipts
DCWP Actions to Stop Junk Fees
Under Mayor Mamdani’s Executive Order 09, DCWP has led a citywide crackdown on junk fees that inflate costs for consumers and undercut honest businesses. In January 2026, the Mamdani Administration issued a final rule prohibiting hotels from charging excessive “destination” or “resort” fees and banning hidden credit card holds. DCWP also filed a lawsuit against solar panel installation company and its owner for allegedly deceiving consumers and embedding undisclosed “dealer fees,” seeking millions in civil penalties and restitution.
Following the launch of the City’s annual Free Tax Prep initiative, DCWP also began a citywide sweep of paid tax preparers to ensure compliance with laws prohibiting illegal overcharging and hidden fees. The agency also continued its “Fee Free February” enforcement actions targeting predatory employment agencies.
DCWP is expected to continue aggressive enforcement across industries to root out junk fees and protect working New Yorkers.
NYC Towing Services
DCWP licenses businesses that perform “non-consensual” tows, including towing cars:
- Blocking private driveways
- Parked on private property including private parking lots
- Immobilized after an accident
- Stolen, abandoned, or broken down
Vehicles may also be towed by government agencies, including the NYPD, the City marshal or the sheriff.
Information about vehicles towed by law enforcement is available through the New York City Department of Finance.
DCWP regulates NYC’s Directed Accident Towing Program (DARP) and Rotation Tow Program (ROTOW), which oversee accident, abandoned and driveway-blocking tows.
The DCWP also licenses businesses that boot vehicles on private property.
