Colorado § 40-10.1-406 - Failure to comply.

§ 40-10.1-406. Failure to comply.

(1) No fees - return of vehicle.

(a) If a towing carrier fails to comply with this article 10.1, article 20 of title 38, or part 18 or 21 of article 4 of title 42 or any rule promulgated under this article 10.1 or part 18 or 21 of article 4 of title 42, the towing carrier:

(I) Shall not charge or retain any fees or charges for the services performed with respect to the vehicle; and

(II) Shall return to the authorized or interested person any fees it collected with respect to the vehicle.

(b) It is an affirmative defense in any action to collect towing fees that:

(I) The vehicle was towed nonconsensually; and

(II) The towing carrier failed to comply with section 40-10.1-405.

(c) Within forty-eight hours after a tow is determined to have been performed in violation of this article 10.1 or any rules promulgated under this article 10.1, the towing carrier shall return the vehicle back to the location from where it was towed unless:

(I) The authorized or interested person notifies the towing carrier that the person prefers to retrieve the vehicle from the towing carrier's storage facility without charge; or

(II) Returning the vehicle to the location from where the vehicle was towed is not practical, as determined by the commission.

(2) Attorney fees. An authorized or interested person seeking reimbursement for damages may recover from the towing carrier reasonable attorney fees if:

(a) The vehicle was towed nonconsensually;

(b) A court holds that:

(I) The towing carrier failed to comply with this article 10.1, article 20 of title 38, or part 18 or 21 of article 4 of title 42 or any rule promulgated under this article 10.1 or part 18 or 21 of article 4 of title 42, and this failure caused damages, including economic damages, to the vehicle owner or lienholder; or

(II) The towing carrier damaged a vehicle while connecting it to a towing vehicle, while possessing the vehicle, or while returning the vehicle to an authorized or interested person; and

(c) The authorized or interested person demanded reimbursement for the suffered damages and the towing carrier refused to reimburse the authorized or interested person for the damages.

(3) Damages recovered for party in interest. In a court action arising from a nonconsensual tow, any authorized or interested person may recover the damages suffered by another authorized or interested person from a towing carrier if the person who recovers the damages reimburses the other authorized or interested person for the damages suffered by the authorized or interested person. A court may issue an order implementing this subsection (3).

Source: L. 2022: Entire section added, (HB 22-1314), ch. 416, p. 2945, § 11, effective August 10. L. 2024: (1)(c) added, (HB 24-1051), ch. 292, p. 1990, § 4, effective August 7.