Mayor Mamdani, DCWP seek restitution and license revocation for Instant Recovery Corp.
New York, NY – Mayor Zohran Kwame Mamdani and the New York City Department of Consumer and Worker Protection (DCWP) announced a lawsuit against Instant Recovery Corp., a Bronx-based towing operator accused of systematically overcharging customers, issuing illegal fees and refusing to comply with city law.
Key Points
- The city accuses Instant Recovery of charging illegal tow, storage, and drop fees.
- DCWP says the company demanded cash-only payments and withheld receipts.
- Officials are seeking full restitution for affected New Yorkers, civil penalties, and license revocation.
- More than 300 towing companies were warned during a recent compliance blitz.
According to city officials, the investigation began after a flood of consumer complaints about Instant Recovery’s pricing and practices. The agency’s findings allege that the company regularly overbilled for tows, conducted unauthorized removals, and used coercive cash-only policies.
“Tow trucks often meet New Yorkers on their worst days—after an accident or a breakdown,” Mayor Mamdani said. “Instead of offering help, companies like Instant Recovery took advantage of people when they needed help most, extorting them with price gouging, hidden fees, and coercive charges. We’re fighting back to make sure every New Yorker harmed gets restitution.”
DCWP Commissioner Sam Levine said the company “treated the law as optional,” adding that the city’s legal action “puts the entire industry on notice” that towing violations will be met with enforcement.
The city’s lawsuit seeks restitution for consumers, civil penalties for more than a thousand alleged violations, and the revocation of Instant Recovery’s towing license.
Citywide crackdown on ‘junk fees’
The lawsuit follows the Mamdani administration’s broader campaign to eliminate “junk fees” across industries. Under Executive Order 09, DCWP has issued new rules banning hidden surcharges and undisclosed charges in sectors ranging from hospitality to home energy.
Earlier this year, DCWP filed a separate lawsuit against Radiant Solar, accusing the company of embedding “dealer fees” in contracts. The agency also launched enforcement sweeps targeting tax preparers and employment agencies suspected of illegal overcharging.
Officials say the crackdown aims to ensure “honest business practices and fair pricing” for New Yorkers.
DCWP continues to oversee and license all companies performing non-consensual tows in New York City, including those involving private property violations or post-accident recovery.
Tags: new york-city, consumer protection, towing
