---
title: "California BAR suspends LA license following investigation into predatory towing"
url: https://burnaze.com/article/bc85a7a9-b624-4e56-ab0d-6d26fdc7faf6
source: "Repairer Driven News"
original_url: https://www.repairerdrivennews.com/2026/06/29/california-bar-suspends-la-license-following-investigation-into-predatory-towing/
author: "Lurah Lowery"
category: "Automotive"
industry: "Automotive"
published: 2026-06-29T10:30:48.000Z
modified: 2026-06-29T11:01:01.959Z
image: https://www.repairerdrivennews.com/wp-content/uploads/2026/06/iStock-1003303262-300x200-1.jpg
---

# California BAR suspends LA license following investigation into predatory towing

**TL;DR:** The Bureau of Automotive Repair has issued an interim suspension order against LA Custom Collision following allegations of fraudulent and deceptive business practices in the Los Angeles area.

*By Lurah Lowery, originally published in Repairer Driven News on 2026-06-29. [Read the original](https://www.repairerdrivennews.com/2026/06/29/california-bar-suspends-la-license-following-investigation-into-predatory-towing/).*

## Story

The state license of Los Angeles-based automotive repair dealer, LA Custom Collision, has been suspended following an investigation by the Bureau of Automotive Repair (BAR). BAR found that the business was engaging in fraudulent, predatory, and deceptive business practices that resulted in consumer harm.

Following its investigation, BAR filed a petition for an interim suspension order (ISO) to prevent further consumer harm. On June 19, an administrative law judge issued a ruling and order granting BAR’s petition.

The suspension took effect immediately, prohibiting LA Custom Collision from doing business or providing services to consumers. The suspension will remain in effect until the pending disciplinary action against the business 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 this scheme, listening to police radio calls and showing up at crash scenes without being requested. They would then prey on those involved in the crash by convincing them to have their vehicles towed to LA Custom Collision’s shop.

Consumers who filed complaints reported being pressured or misled into signing documents that claimed towing would be free. They were later surprised with fees and bills for thousands of dollars.

In some cases, insurance companies ruled vehicles total losses because the towing and storage costs 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 instance, the shop demanded more than $4,000 in storage fees for a vehicle that had been stored for only a few hours.

BAR notes that customers should get everything in writing before work at an automotive repair shop is authorized.

> Automotive repair shops must provide a detailed estimate and get your permission before any repairs or services can begin.

Last year, when a predatory towing ring was disbanded in Southern California, Andrew Batenhorst, manager of Pacific BMW Collision Center, stated that this type of behavior has persisted for decades. When asked if proposed regulations from the BAR regarding storage fees were in response to illegitimate actions, Batenhorst believed they were.

The passage of AB1263 in 2024 gave BAR the authority to address storage fees. It also allows BAR to codify its guidance and unify existing laws on the subject. The changes also include teardown disclosures.

During the fourth workshop on the proposed changes, held January 30, 2025, the main concerns voiced were the language causing a cap on storage fees and the potential loss of days of storage revenue. Some speakers returned to share these concerns about the newest changes made after previous workshops.

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Originally reported by Lurah Lowery, Repairer Driven News (https://www.repairerdrivennews.com/2026/06/29/california-bar-suspends-la-license-following-investigation-into-predatory-towing/). Summarized by Burnaze (https://burnaze.com/article/bc85a7a9-b624-4e56-ab0d-6d26fdc7faf6).