Thousands of NSW motorists are having cars captured in an elaborate ransom scam worth millions of dollars

Sidney : Thousands of NSW motorists are having their cars captured by tow truck operators and affiliated crash repairers as part of an elaborate, hostage-style racket worth tens of millions of dollars. A Sun-Herald investigation has found that sections of the accident towing industry are exploiting distressed, not-at-fault drivers at crash scenes by convincing them to sign “authority to act” forms.The quasi contracts then activate a range of scams that involve tow truck operators passing on the vehicles to smash repairers who withhold them until excessive “storage” fees are paid. Rogue repairers are also fixing vehicles without the insurer’s knowledge or permission, then refusing to release them until further exaggerated charges have been settled.
The Sun-Herald is aware of one Sydney tow truck operator who is currently holding 11 Sydney motorists to ransom – four of whom have not seen their cars for six months.
Suncorp Group confirmed that last year, it received more than a 100 demands each week from third party repairers or tow truck operators in NSW, at least 70 per cent of which were deemed “inflated”.
The rip-off was recently exposed in the NSW Supreme Court where, in a landmark case, two NRMA customers successfully sued a Maroubra smash repairer for refusing to release their vehicles unless they paid storage fees. NRMA Insurance head of supply chain Steven Bubulj said: “Being involved in a car accident is an emotional and confronting moment. It is abhorrent that someone in that situation would be taken advantage of as part of an opportunistic money making exercise.” The scheme specifically targets not-at-fault drivers because, as a third party, they are not bound by any contractual terms and conditions that exist between the at-fault driver and their insurer. Typically, a tow truck driver arrives at a crash scene brandishing a slip that carries the name of an associated repairer. Once a signature is secured from an often confused and traumatised motorist, it is cited as a contractual agreement that enables unlimited storage costs to be charged by repairers – who, unlike tow truck operators, have no legislative restrictions on what they are allowed to charge. Not only has the racket spread nationally, it is being fuelled by debt recovery agents and lawyers who launch legal action in local courts, knowing insurers will most likely settle than engage in lengthy litigation.