Attorney General William Tong has announced a $65,000 settlement with Hilario Truck Center and Hilario’s Service Center following an investigation into the collection of illegal junk fees. The settlement addresses numerous complaints about fees charged by the companies for towing services.
"‘Hilario’s charged junk fee after junk fee, violating state statutes and significantly overcharging drivers or their insurers. If you were towed by Hilario’s, you may be entitled to restitution," said Attorney General Tong. "In addition to consumer refunds, our settlement ends these excessive charges and requires Hilario’s to pay $10,000 to the state. Tow fees are all-inclusive and tightly regulated by the state. Getting towed is stressful enough; no one should be subject to excessive illegal junk fees," he added.
The Department of Motor Vehicles (DMV) Commissioner Tony Guerrera emphasized consumer protection through transparency regarding fees. "Processes are in place to ensure consumer protection, beginning with transparency in regards to fees," he stated.
The investigation began in 2022 when DMV referred several consumer complaints about unlawful fees imposed by Hilario's for items such as personal protective equipment, fuel surcharges, escort fees, truck cleaning fees, and other non-permitted charges.
Tow fees are regulated by the DMV and are intended to be all-inclusive. They set specific rates for light-duty and heavy-duty towing services. Additional charges can only be applied for exceptional services rendered at accident scenes.
Consumers whose vehicles were towed by Hilario's under police or traffic authority orders since January 1, 2019, may qualify for refunds if they paid any of the specified categories of illegal fees. Eligible consumers must submit written requests with documentation directly to Hilario's at their Newtown address before April 22, 2025.
The settlement does not cover private property or self-initiated towing arrangements nor those covered by insurance companies before December 31, 2018.
Assistant Attorney General Joe Gasser supported Attorney General Tong in this case.