SPRINGFIELD – In response to predatory towing practices that have long exploited Illinois drivers, a new law championed by State Senator Celina Villanueva has been signed — giving state regulators stronger tools to hold rogue operators accountable and ensure safer, fairer roads.

“Far too many drivers have been taken advantage of by shady tow companies that operate without oversight, move vehicles without consent and charge outrageous fees,” said Villanueva (D-Chicago). “With this new law, we’re letting people know that Illinois will not tolerate predatory practices that harm working families and undermine public trust.”

Previously, the Illinois Commerce Commission could fine violators — but many of the worst offenders would simply ignore penalties and continue operating under different names. Under Villanueva’s law, the ICC now has the authority to impound unregistered tow trucks, while the Secretary of State can suspend license plates tied to unpaid fines. The law also requires tow operators to register their business and storage locations to prevent vehicles from being held at undisclosed lots.

To further deter abuse, the law imposes a three-year ban on licensing for fraudulent towers and prohibits them from placing liens on essential personal property left in a towed vehicle — such as medical devices or child safety seats.

“This law is about protecting people — especially those who don’t have time or money to waste fighting with dishonest companies just to get their car back,” Villanueva said. “By strengthening enforcement and increasing transparency, we’re making our streets safer and our system more just.”

Senate Bill 2040 was signed into law Friday and goes into effect Jan. 1, 2026.