American Family Mutual Insurance on Tuesday sued four towing companies for consumer fraud, claiming tow truck drivers appeared at the scene of crashes without being called and offered to tow the vehicles at excessive rates.
The insurance company filed an initial lawsuit suit Friday against Jay Kay Collision Center, claiming the company defrauded policy-holders.
The suits were filed Tuesday in Cook County Circuit Court against Four Sons Towing and Storage in Chicago; America's Auto Body in Schaumburg; Technicraft Collision Repair in Justice; and City Wide Towing in Blue Island.
Since 2005, employees of the companies intentionally defrauded individual customers and their insurance companies while towing or hauling their damaged cars from the scene of accidents, the lawsuit said.
Tow truck drivers would arrive at the scene of traffic accidents without having been contacted by anyone involved in the accidents or by police.
The drivers would then approach the drivers of the cars involved in the crash and offer to tow the cars. They also allegedly told the insured that all costs associated with the towing would be covered entirely by their insurance companies, the suit said.
The customers were charged excessively high towing and storage fees, as well as various miscellaneous fees in connection with the towing.
After arriving at the lots, employees would then refuse to release the vehicles until full payment was made, the suit said.
As a result of the fraudulent practices, American Family risked losing policy-holders due to dissatisfaction, the suit said. The cancellation and non-renewal of policy-holders resulted in higher premium costs to remaining policy-holders.
The suits seek three times the amount of each false claim, as well as attorney costs and additional relief.
(article link http://www.southtownstar.com/business/1760594,towing-fraud-lawsuit-0909.article
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