There is an apparent lack of control and ethics in the towing industry, the High Court in Pretoria said on Tuesday.

"...What seems to be a problem in the industry is that there does not seem to be any control and there are no ethics," Judge Moses Mavundla said. He speaking during hearing legal argument in an urgent application against an emerging Soshanguve towing business, UDN Towing Service.

The applicants in the matter — Insurers Telesure Group Services, Auto & General Insurance and several brokers — sought an interdict to stop UDN from towing or storing any of their insured vehicles.

They claimed the business was "holding them to ransom" by levying "outlandish fees" for services they rendered without authorisation.

The insurers claimed the amounts ordinarily levied by UDN averaged about R12 500 and they had already been forced to institute four court applications when UDN refused to release vehicles unless they were paid.

UDN denied claims of overcharging or obtaining business through "underhanded means".

They claimed there was a vendetta against them because they "would not bow before the exclusive towing contractor of the applicants".

Angry tow truck operators accused Auto & General of racism and staged a protest outside the court.

Mavundla urged the parties to settle the matter "so that both sides could leave the court satisfied".

'The way forward'

"...There is a need for role players to start looking at the way forward and how you're going to conduct the industry."

Telesure towing manager Ebenhaezer Enslin said it was necessary for the applicants to ensure that only approved operators towed their insured vehicles.

The tow-truck industry was poorly regulated and unscrupulous operators were able to muscle their way onto the scene and to hold insurers to ransom, Enslin contended.

UDN member Ulyses Donald Ndinisa in court papers blamed major towing companies.

"...It is the major towing companies who muscle their way onto the scene and to thereafter hold insurers to ransom by levying outlandish fees for services they rendered... It is also the system employed by companies such as the applicants of entering into exclusive agreements with mighty towing companies that creates problems in the industry."

In terms of a settlement, that was made an order of court by Mavundla, UDN agreed not to tow, remove or store any of the applicants' insured vehicles without first obtaining the express consent of First Assist Management (FAM) by way of its 24-hour help line.

It also undertook to comply, as sub-contractor, with all terms and conditions determined by FAM.

All parties will pay their own costs.

Sapa

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