“We appreciate the investigative work performed by BAR to help protect consumers from harm. Dealing with towing and vehicle repairs in the aftermath of an accident can be extremely stressful. We expect towing and repair companies to comply with the laws governing their state licenses, and when they fail to do so, they should be held accountable.” 

CSLEA President Alan Barcelona

SACRAMENTO – On June 22, 2026, the California Bureau of Automotive Repair (BAR) reported that the state license of Los Angeles-based automotive repair dealer, LA Custom Collision, has been suspended after a BAR investigation revealed the business was engaging in fraudulent, predatory and deceptive business practices that resulted in consumer harm.

Following the investigation, BAR filed a petition for an Interim Suspension Order (ISO) to prevent further consumer harm. On June 19, 2026, an Administrative Law Judge issued a Ruling and Order granting BAR’s petition. The suspension took effect immediately and LA Custom Collision is prohibited from doing business or providing services to consumers. The suspension will remain in effect until the pending disciplinary action against the licensee is resolved.

BAR’s investigation found that not only did the business violate the law, it also violated consumer trust. Consumer complaints prompted the investigation, which uncovered an organized predatory towing scheme, often called “bandit towing,” and the charging of illegal vehicle storage fees. LA Custom Collision worked with tow truck operators in the scheme, listening to police radio calls and showing up at crash scenes without being requested, to prey on those involved in the crash by convincing them to have their vehicles towed to LA Custom Collision’s shop.

Consumers reported being pressured or misled into signing documents claiming towing would be free, then later being surprised with fees and bills for thousands of dollars. In some cases, insurance companies ruled vehicles total losses because the towing and storage cost were so high that repairs no longer made sense. The shop then refused to release the vehicles until the consumers or their insurance companies paid the charges. In one case, the shop demanded more than $4,000 in storage fees for a vehicle that had been stored for only a few hours.

If consumers find themselves being approached by a towing company they did not request after a collision, BAR encourages the public to protect themselves by:

• Knowing that if an unsolicited tow truck approaches you after a collision and pressures you to use their service, you have the right to refuse.
• Getting everything in writing before you authorize the work. Automotive repair shops must provide a detailed estimate and get your permission before any repairs or services can begin.
• Asking about towing and storage fees ahead of time and getting them in writing.