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they can just tow illegally parked cars wherever they see them? they don't need to wait for a complaint?
No.
Well, yes and no. They can't just go anywhere and snatch up illegally park cars. Tow companies do sign exclusive deals or have agreements with businesses or even police precincts where they can go and hook up illegally parked cars without being called. When my son came to live with me (my daughter always lived with me), I needed more income and took a part-time job with the local tow company that my main job uses for breakdowns. They aren't exactly ethical. Their drivers were mostly hardcore ex-felons and they go looking for work, like what might have happened in this story, when there isn't enough roadside assistance calls to keep them busy. The police company tows can't handle all of the impounds and farm out the work to local tow companies. So you have tow company owners, who could paid pretty well by the city for each tow, and some shady drivers making the call on who can be towed.