Mayor Zohran Kwame Mamdani and the New York City Department of Consumer and Worker Protection (DCWP) have filed a lawsuit against Instant Recovery Corp., a tow truck operator based in the Bronx. The company is accused of illegal practices such as charging unauthorized fees, overbilling customers, and other violations of city law.
The DCWP began investigating Instant Recovery after receiving numerous complaints from consumers soon after the company started operating in November 2024. According to officials, Instant Recovery allegedly imposed unlawful charges on people who needed towing services.
“Tow trucks often meet New Yorkers on their worst days — after an accident or a breakdown,” said Mayor Mamdani. “Instead of offering help, companies like Instant Recovery have taken advantage of people when they need help most, extorting them with price gouging, hidden fees and coercive charges. Today, we’re fighting back — demanding full restitution for every New Yorker harmed and making clear to the entire industry: if you prey on our neighbors and ignore the law, we will hold you accountable.”
The city is seeking restitution for affected consumers, civil penalties for more than one thousand violations, and the revocation of Instant Recovery’s tow truck license. Last week, DCWP also issued warnings to over 300 tow truck operators across New York City as part of a compliance effort to enforce towing laws.
“Instant Recovery’s pattern of predatory behavior of bogus fees, cash-only demands and refusal to provide receipts is exactly the kind of consumer abuse this administration will not tolerate,” said Deputy Mayor for Economic Justice Julie Su. “We are pursuing this case without fear or favor and fighting to return every dollar owed to New Yorkers.”
Commissioner Sam Levine added: “From dolly and special tow fees to overcharging for storage and drop fees, Instant Recovery treated the law as optional. Our lawsuit puts the entire industry on notice: DCWP is watching, and we will act.”
Under Executive Order 09 by Mayor Mamdani, DCWP has increased efforts against junk fees that raise costs for consumers. In January 2026, new rules were put in place banning excessive hotel surcharges such as “destination” or “resort” fees and prohibiting hidden credit card holds. The agency also took legal action against Radiant Solar for undisclosed dealer fees.
As part of ongoing enforcement actions throughout February 2026 targeting predatory employment agencies during “Fee Free February,” DCWP continued its push against illegal charges across multiple industries.
DCWP licenses businesses performing non-consensual towing services in New York City. Consumers are advised to verify a towing company’s license online or by calling 311 before accepting service. More information about regulations can be found in DCWP’s Towing Services Guide or through official city resources.