Jan. 7, 2020—During the past couple years, car flipping cases brought by the Texas Department of Licensing and Regulation, which issues towing and storage licenses, have been exclusively against Houston-area companies, records show, according to the Houston Chronicle.
Allstate alone reported recovering more than 120 obviously totaled vehicles per month that had been moved from storage facilities to body shops. Police and even some wrecker companies, however, say the area’s outdated, free-for-all towing system is at least partially to blame, according to the report.
In the area it was reported that it was common knowledge that Stan’s Wrecker, a licensed vehicle storage facility, was flipping totaled cars to USA Auto Collision, an unlicensed body shop at the same Almeda Genoa Road location.
Police say they're hampered by limited manpower. State licensing cases can take years to investigate. Even if a scheme is proven, revocations only last a year, after which the offender can reapply.
