We are now six months into Ontario’s attempt at cleaning up the towing industry. How well is the government doing?
by Dennis Roberts, TransCan Service Ctr. Ltd.
As I write this article, Ontario towers are going into month six of the Towing and Storage Safety & Enforcement Act (TSSEA). Just how well are we coping with all the new legislation, rules, and requirements? It pains me to say that the legislation that many of us had pinned our hopes on to reduce threats to our industry is struggling, to say the least.
The hope for an ease to the threat to our income from vexatious insurance companies has been dashed. The thought that legislation would help elevate the tow operator to a more professional plateau has not fared much better. The increase in red tape and expense for tow and storage companies and tow operators is very real, so much so that it has cost some operators their jobs and caused some to simply turn their backs on the industry, or worse, close up shop completely.
July-August 2024
This legislation has not only cost the tow industry monetarily, but many operators have also given up or reduced law enforcement towing, carefully screening the calls they accept, for fear of non-payment. This, in turn, has created hardship for law enforcement, including excessive wait times for a tow response. In some cases, this has forced them to leave impounded vehicles on the side of the highway until a tower can be found to respond. Excessive wait times also cause delays in cases of an accident that may be blocking the road or lane, causing risk to the motoring public.
The legislation was, in my opinion, rushed into implementation well before all the bugs had been worked out. The Ontario Ministry of Transportation, the oversight ministry for the TSSEA, has been adamant that the legislation is going to work. Their thought process is that the issues within the legislation can be “worked out as they arise.” REALLY? How many of you can operate your business within legislation with changing rules, mandatory price caps, and an oversight board that can’t give an accurate answer to clarify a very grey governing legislation?
"If you cannot see the threat that the TSSEA is to the average
tow company, I have to question your motives
or agenda.”
I, personally, have submitted numerous questions on different occasions, and it seems answers are only given on Fridays, usually a few weeks after the question is asked, and offer, more or less, a reiteration of the Act itself.
It is obvious that no one in the TSSEA office has the slightest idea how a business operates, and no idea of the additional challenges that this act has put in front of the industry. They also seem to have no idea that they have opened a door for the insurance industry to abuse both tow and storage operators and the public.
According to the answers to my most recent questions in the MTO’s Friday Follies, a tow/storage operator must release a vehicle to anyone who can be identified as acting on behalf of the registered owner and release the vehicle upon a “good faith attempt” to resolve the invoice. LET THAT SINK IN! The registered owner has just been removed from the equation.
If a registered owner asks you to hold their vehicle while they negotiate with their insurer, and the insurer calls for release, you must release the vehicle or face fines and the possible loss of your license to operate. Whether the registered owner agrees or not, you must release the vehicle. The MTO’s response to my question about how a tower/storer should protect themselves against an irate owner was “to discuss the pertinent sections of the Act with the owner….” I’m sure that will calm them right down.
To my question about what exactly a “good faith attempt” means, the MTO/TSSEA replied: “The TSSEA does not define the term ‘good faith,’ nor does it specify that good faith includes payment for services.” They go one further to say, “The TSSEA does not compel a customer to satisfy an outstanding account,” and that we “may wish to consult with a legal professional.”
That’s great! So, you are charging me a fee to tow, a fee to store, a fee to drive, and you insist that a “good faith attempt” is all that is required to force us to release the vehicle, whether we are paid in full or paid at all. Yet, you decline to provide a determination on what a “good faith attempt” actually is.
Further to my point, this particular piece of genius forces a tower/storer to deal with whomever calls for the release. My company policy has been that we do not deal directly with insurance companies. They are nothing but a pain in the rear, and they always insist on a reduction of the invoice. The administration and aggravation are simply not worth it. However, I now no longer have this option; I am forced to deal with either the insurer or their lackeys if they call for the release.
"Six months in, we might just as well be on Day One.”
The TSSEA was touted as a public protection move, a way to clamp down on chasing, arson, and shootings. Six months in, and there is still chasing, arson, and as of the end of May, there are still tow trucks being shot at.
On the May long weekend, the TSSEA’s shortfalls and lack of communication forced some Ontario companies to stage a withdrawal of service. The withdrawal was not a strike, simply a way of bringing focus to the very real part towers play in keeping the highways and byways of Ontario open. The only requests that were declined were law enforcement tows where there is/was no guarantee of payment. A little over 60 companies of all sizes from all regions of Ontario took part. While the withdrawal of service did not cause any substantial traffic delays, it most certainly got the attention of law enforcement officials. Many companies were approached by their local police to ask what was happening, why, and for how long. This turned out to be a great opportunity to educate the police, and most, if not all, sympathized with our situation.
"It seems every time I read through the TSSEA legislation,
I find another spot where the tower is left holding the bag.”
The next withdrawal is currently being planned, and with any luck, we will attract a bigger and more impactful following. Unfortunately, not all in the towing industry could offer their support. Some just had to throw stones, declaring that drivers “had nothing to worry about,” and that there is nothing in the legislation that should concern anyone playing by the rules. I’m sorry, but if you cannot see the threat that the TSSEA is to the average tow company, I have to question your motives or agenda.
I truly believe that the only way to get any changes that will actually benefit the industry is to keep pressure on the TSSEA administration until they start to communicate in a meaningful way. To say that it will all work out in the end is foolhardy. Waiting for the TSSEA/MTO to draft this legislation is what got us to where we are now. I am not content to wait for them to figure out how to fix it. To be fair, there was communication with the industry prior to the writing of this legislation; however, the information they were given was either ignored or inaccurate. It seems every time I read through the TSSEA legislation, I find another spot where the tower is left holding the bag.
In summary, six months in, we might just as well be on Day One. If this is the speed with which the TSSEA plans to “work out the bugs,” I will be long retired before they can produce any meaningful solutions. 🍁