NYC Towing Companies Accused of Overcharging Still Towing for City

Two firms that had to pay back thousands after overcharging remain part of city's tow rotation program.

Mar. 13, 2026 at 3:39am

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Two New York City towing companies, Clutch Towing and Five J's Automotive, were forced to pay back thousands of dollars after being accused of overcharging customers. However, despite these settlements, the companies are still able to tow cars on behalf of the NYPD through the city's Rotation Tow Program and Direct Accident Response Program.

Why it matters

The continued use of these towing companies by the NYPD raises concerns about accountability and consumer protection, as the city has publicly acknowledged the companies' history of overcharging. This case highlights the challenges in regulating the towing industry and ensuring New Yorkers are not taken advantage of.

The details

In 2025, the New York City Department of Consumer and Worker Protection (DCWP) received 86 complaints about Clutch Towing, more than any other tow truck company in the city. The DCWP reached settlements with both Clutch Towing and Five J's Automotive, requiring them to pay back thousands of dollars in restitution to customers they had overcharged. However, both companies remain enrolled in the city's Rotation Tow Program and Direct Accident Response Program, which allow them to continue towing cars on behalf of the NYPD.

  • In 2025, the New York City 311 system received 86 complaints about Clutch Towing, the most of any tow truck company in the city.
  • In March 2025, the city reached a settlement with Clutch Towing, requiring the company to pay back thousands in restitution to customers it had overcharged.
  • In June 2025, the city reached a similar settlement with Five J's Automotive.

The players

Clutch Towing

A Brooklyn-based towing company that was accused of overcharging New Yorkers and forced to pay back thousands in restitution, but is still able to tow cars on behalf of the NYPD.

Five J's Automotive

A towing company that, like Clutch Towing, was accused of overcharging New Yorkers and forced to pay back thousands in restitution, but is still able to tow cars on behalf of the NYPD.

New York City Department of Consumer and Worker Protection (DCWP)

The city agency that regulates towing companies and reached settlements with Clutch Towing and Five J's Automotive over allegations of overcharging customers.

Michael Medved

A New York City resident who says he recently had issues with Clutch Towing, including the company allegedly towing his car and then refusing to return it for over a month.

Mo Hassan

The manager of Clutch Towing, who claims the company has never charged more than the city's rate caps.

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What they’re saying

“People don't wanna park their car on a New York City street without no plates, and then when we tow it, they're upset.”

— Mo Hassan, Manager, Clutch Towing (CBS News New York)

“If companies agree under settlement to come back under compliance with the law, that's something we will often entertain. But I wanna be clear -- if companies agree to follow the law, they need to follow the law. We reserve all rights, including revoking the license altogether, to make sure New Yorkers don't get ripped off again.”

— Sam Levine, Commissioner, Department of Consumer and Worker Protection (CBS News New York)

“This is honest hardworking New Yorkers being harmed every single day by these people.”

— Michael Medved (CBS News New York)

What’s next

The DCWP says it reserves the right to revoke the licenses of Clutch Towing and Five J's Automotive if the companies do not comply with the law, and the agency is considering further enforcement action against Clutch.

The takeaway

This case highlights the ongoing challenges in regulating the towing industry in New York City, as companies accused of overcharging customers are still able to tow cars on behalf of the NYPD. It raises questions about accountability and consumer protection, and whether the city needs to take stronger action to ensure towing companies are not taking advantage of New Yorkers.