In which situation can a tow company keep a towed vehicle until payment is made?

A tow company has the legal authority to retain custody of a towed vehicle until payment is made when the tow was directed by a law enforcement officer. In these situations, the law typically stipulates that the vehicle is taken for public safety reasons or as part of an investigation. The officer’s instruction can often be based on the vehicle's involvement in a crime, a need for police processing, or impeding traffic or public safety. Under these circumstances, the tow company is providing a necessary service as ordered by the officer, which justifies their holding of the vehicle until fees are settled, in accordance with established regulations.

In contrast, when it comes to abandoned vehicles or those that are simply parked illegally, different rules apply. They may not necessarily involve law enforcement or public safety directives, which could allow the vehicle's owner more rights to reclaim their property without incurring additional fees. A verbal agreement from the owner does not place the tow company in a position to legally withhold the vehicle for payment, as the agreement must be contractual or otherwise documented to have enforceable power.