North Carolina Towing Laws: Liens, Penalties, and Disputes

North Carolina towing laws sit mostly in Chapter 20 of the General Statutes, with the lien and sale rules in Chapter 44A. In plain terms: a private lot can have your car towed only if it posted the right signs and asked the towing company in writing, the towing company generally has to tell local police before it moves your car, and once your vehicle is in storage a statutory lien starts running that can end in a sale if you don’t act within 10 days of getting the DMV notice.

When a Private Lot Can Legally Tow Your Car

Under § 20-219.2, a vehicle parked on private property without the owner’s or lessee’s express permission can be towed, but two things must be true first. The property owner or lessee has to submit a written request to the towing company, and the lot has to display legible signs at every entrance.¹

The signs must meet specific requirements:

Minimum 24 inches by 24 inches.
The current name and current phone number of the towing and storage company.
If the spaces are individually owned or leased, additional signs identifying each owner or lessee by name.

There’s also a 72-hour rule. No vehicle can be towed under this statute until the signs have been up for at least three full days.²

If any of those conditions fails, the tow likely violates the statute. Missing signs, undersized signs, a sign without the towing company’s phone number, or no written request from the property owner — any of these gives the vehicle owner a real argument.

The Notice to Law Enforcement Before Towing

Under § 20-219.20, a towing company that removes a vehicle at someone else’s request must call the local law enforcement agency with jurisdiction before the vehicle is moved. The only exception is when the vehicle is impeding traffic or creating a public safety hazard; in that situation the operator has 30 minutes after moving it to give notice.³

The towing company has to tell police what the vehicle is, where it was towed from, where it’s being stored, and who to contact to retrieve it. Law enforcement keeps that information on file for at least 30 days. So if you come back to an empty parking space, calling the local non-emergency line is usually the fastest way to find your car.³

Two situations don’t require this notice: tows that law enforcement itself directs, and tows from private lots that comply with the signage rules in § 20-219.2(a). In the second case, the compliant sign is the notice — the towing company’s name and number are supposed to be right there where you parked.³

Towing from Public Streets and City Property

Removals from public property generally happen through local government under § 160A-303, which lets a municipality remove an abandoned motor vehicle. A vehicle can qualify as abandoned in several ways, including parking illegally on a street, sitting on city property for more than 24 hours, sitting on a public street or highway for more than seven days, or being deemed a hazard by law enforcement. When a city tows an abandoned vehicle, it must notify the last known registered owner with a description of the vehicle, where it was removed from, and where it is stored.⁴

Storage Liens and the 10-Day Deadline That Matters Most

Once your car is in a towing yard, the clock starts. Under § 44A-2(d), a towing company that stores your vehicle in the ordinary course of business has a statutory lien on it for reasonable towing and storage charges. That lien takes priority over both perfected and unperfected security interests, so it sits ahead of even your auto lender’s claim.⁵ That’s why storage charges get expensive fast: the towing company has full leverage.

If charges go unpaid for 10 days, the towing company can start the sale process. It notifies the Division of Motor Vehicles, which sends certified mail to the titled owner, any known lienholders, and other interested parties. The notice identifies the lien, the amount owed, and the intent to sell.⁶

From the day you receive that notice, you have 10 days to tell the DMV you want a judicial hearing to contest the lien. Miss the window and you waive your right to a pre-sale hearing. Request the hearing in time, and the vehicle cannot be sold without a court order.⁶ This is the single most important deadline in the entire process.

If the Towing Company Damaged Your Car

Section 20-219.2 gives towing operators a general shield against liability for the act of removing an unauthorized vehicle, but that shield disappears when the operator intentionally or negligently damages the vehicle or injures someone in the process.¹

The practical piece is documentation. Before paying to retrieve the vehicle, photograph every panel, wheel, bumper, and undercarriage area you can access. Older photos of the car, even casual ones taken for insurance or a sale listing, become evidence. To recover, you’ll need to show the damage more likely than not happened while the towing company had the car.

Penalties for Towing Violations

Two provisions carry statutory penalties, aimed at two different actors:

Parking in a private space without permission is an infraction under § 20-219.2 punishable by a fine of not less than $150.¹
A towing company that fails to provide the required pre-tow notice to local law enforcement commits an infraction under § 20-219.20 with a maximum penalty of $100.³

Beyond those, a towing company that removes a car without complying with the statute — say, from a lot with no compliant signage or with no written request from the property owner — can face a civil suit from the vehicle owner for towing fees, storage costs, and related damages.

How to Dispute an Illegal Tow

Start with the Towing Company

Contact the towing company directly with specific evidence. If the signs weren’t 24 by 24 inches, didn’t list a current phone number, or had been posted for less than 72 hours, say so and back it up with photos. Signage photos taken right after the tow are the strongest evidence you can bring to any later proceeding.

Small Claims or District Court

If the company won’t refund improper charges, small claims court is usually the next step. The monetary limit for small claims in North Carolina varies by county, ranging from $5,000 to $10,000; the clerk of court in the county where the tow occurred will confirm the local cap. You don’t need a lawyer — a magistrate hears both sides and often decides the same day. Claims above the small claims limit but under $25,000 go to district court.⁷

Consumer Complaint with the Attorney General

You can also file a consumer complaint with the North Carolina Department of Justice, either online or by calling (877) 5-NO-SCAM. The office forwards the complaint to the business, invites a response, and attempts mediation. It doesn’t replace a lawsuit, but it creates a record and sometimes speeds up a resolution.⁸

Federal Protections That Can Apply

Active-Duty Servicemembers

The Servicemembers Civil Relief Act prevents anyone from enforcing a lien on a servicemember’s property during active duty or within 90 days after service without a valid court order. If you or a family member is on active duty and a towing company is threatening to auction the vehicle over unpaid storage, this federal protection may block the sale.⁹

State Authority to Cap Prices

Federal law generally bars states from regulating the prices, routes, or services of motor carriers, but 49 U.S.C. § 14501 carves out an exception for non-consensual tow truck operations, meaning tows performed without the vehicle owner’s prior consent or authorization.¹⁰ North Carolina has not enacted fee caps under that authority, though pending legislation would.

What House Bill 199 Would Change, If Passed

Several consumer protections that online guides describe as North Carolina law are actually only in a pending bill. As of the 2025 session, House Bill 199 proposes a new Article 7C in Chapter 20 with the most comprehensive non-consensual towing rules the state has considered. Key provisions include:

A state commission would set annual maximum fees for towing, storage, and booting, with authority to set different caps by region and vehicle type.
Towing companies would have to accept debit cards, credit cards, and cash, with payment processing fees capped at three percent of the amount owed.
Companies could not charge storage fees for days they are not open from at least 9:00 a.m. to 4:00 p.m., and unless a company operates 24 hours a day, it could not charge storage fees until at least one full business day has passed since the vehicle could first be recovered.
Signs would have to include “Private Property” in bold plus the towing company’s name, address, phone number, hours of operation, and all applicable fees.

Until H.B. 199 or something like it passes, none of that is enforceable.¹¹ If you’re relying on a fee cap, a mandatory-credit-card rule, or a storage-fee grace period, confirm the bill’s current status before assuming the protection is in effect.

1
North Carolina General Assembly. North Carolina General Statutes 20-219.2 – Removal of Unauthorized Vehicles from Private Lots
2
North Carolina General Assembly. North Carolina General Statutes 20-219.2 – Removal of Unauthorized Vehicles from Private Lots
3
North Carolina General Assembly. North Carolina General Statutes 20-219.20 – Requirement to Give Notice of Vehicle Towing
4
North Carolina General Assembly. North Carolina General Statutes 160A-303 – Removal and Disposal of Junked and Abandoned Motor Vehicles
5
North Carolina General Assembly. North Carolina General Statutes 44A-2 – Statutory Liens on Personal Property
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North Carolina General Assembly. North Carolina General Statutes 44A-4 – Enforcement of Liens by Sale
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North Carolina Judicial Branch. Small Claims
8
NCDOJ. General Consumer Complaint
9
U.S. Department of Justice. Know Your Rights: A Guide to the Servicemembers Civil Relief Act
10
Office of the Law Revision Counsel. 49 U.S. Code 14501 – Federal Authority over Intrastate Transportation
11
North Carolina General Assembly. House Bill 199 – Nonconsensual Booting and Towing