Class action lawsuit challenges Chicago’s lucrative car-impounding ‘racket’

Chicago impounded roughly 22,000 cars in 2017, according to the

Institute for Justice

. That’s about 60 cars

per day

, a high number that fed Chicago about $28 million in fines that year. It’s a lucrative practice for the city, a practice that some say is unfair. The institute is turning this sentiment into motion, as it announced this week it has filed a class action lawsuit against the city over its impounding policies.

A civil liberties law firm, the Institute for Justice is focusing on two specific details of the impound process that it says violate basic rights. It is targeting Chicago’s impound fines for owners who committed no crimes, and it is targeting the method of holding a car at the impound lot until owners pay all fines and fees.

“The city holds cars ransom until the owners pay all the fines accrued, even before the final judgment is rendered,” Institute for Justice lawyer Diana Simpson stated. “That’s unconstitutional … As far as we know, Chicago has the worst impound system in the entire country.”

The lawsuit cites several instances that point to the system taking advantage of people who simply cannot pay the imposed fees, or charging fees for unfair circumstances. For example, Jerome Davis and Veronica Walker-Davis fell victim to somebody else committing a crime with their car. The vehicle was in the shop for

repairs

when a shop employee used it to break the law. The car was impounded and accrued hefty towing and storage fees.

Another example describes how 51-year-old Spencer Byrd was trapped by the system. A carpenter and part-time mechanic who operates out of his vehicle, Byrd was on call helping a customer. When he could not fix the customer’s car, Byrd provided a ride. Police pulled Byrd over due to a busted turn signal, searched the vehicle, found heroin in the customer’s pocket, and impounded Byrd’s car, which carried the tools necessary for Byrd to work. Byrd now has more than $17,000 in fees racked up on the car and was not able to pick up his tools.

The fines and fees add up extremely quickly in these situations. In addition to penalties for initial offenses, towing fees average about $150 per vehicle, and storage fees range from $20 to $35 per day. For people who live life on a paycheck-to-paycheck basis, even waiting a week or two could create a massive bill and start a terrible cycle of falling behind. This could be worsened if the impounded car was the person’s way of getting to work.

For more details of Chicago’s impounding operations, check out the

Institute for Justice’s case

.