North Carolina City Pursues Injunction Against Illicit Towing Operation Charging Illegal Cash Fees

Gastonia officials take legal action against Jack’s Towing for seizing cars without signs and demanding cash despite being a dissolved business.

By: AXL Media

Published: Mar 23, 2026, 7:58 AM EDT

Source: Information for this report was sourced from Charlotte Observer

A Defiant Operation Under Legal Scrutiny

The municipal government of Gastonia is seeking a judicial order to halt the predatory practices of a towing firm that continues to operate outside the boundaries of state and local law. According to Gastonia City Attorney Eric Edgerton, Jack’s Towing and Recovery Service has remained active in city lots despite having its corporate status officially dissolved by the Secretary of State in November 2025. The legal action aims to force the company to adhere to specific city ordinances that govern how and where vehicles can be removed from private property.

The Breakdown of Corporate Compliance

Court documents reveal that the business failed to file its mandatory annual report, leading to its formal dissolution four months ago. However, municipal officials allege that the lack of a legal business charter did not deter individuals associated with the firm from continuing their rounds. This persistence suggests a disconnect between state regulatory actions and the physical reality of enforcement on the ground, as the company continued to process vehicles without the legal standing to conduct commercial business in North Carolina.

Illegal Tactics and Cash Only Demands

The friction between the city and the towing service reached a peak following an incident last Wednesday in a downtown parking area. City officials state that workers representing the company seized a woman’s vehicle from a lot that lacked the legally required signage notifying drivers of towing risks. Furthermore, when the owner attempted to reclaim her property, the workers reportedly refused to accept electronic payments, insisting on cash only transactions. This practice directly violates Gastonia’s consumer protection codes, which mandate that towing companies must accept credit cards for the release of impounded cars.