There is a federal lawsuit that has been launched recently that is questioning the towing practices in Delaware, referring to them as an impound racket, and those towing practices are now being challenged in this suit which will be looking to determine whether they are the constitutional or not.
It could result in the end of the questionable system as a whole.
The lawsuit is allegedly against the city and the private towing companies that are working with the city, arguing that the towing practices violate the constitution by having cars seized for nonpayment of parking tickets. Those cars that do get taken can be impounded and might end up allegedly being scrapped in the long run if the owners don't pay the debt within a certain number of days.
According to one complaint it is estimated that at least 38% of those cars that were towed in 2020 were allegedly never returned to their owner.
Those behind the lawsuit are challenging the towing scheme in multiple ways, one of them is by pointing out that the cars being taken are worth more than the debt that is owed, and though they might be scrapped or sold there are owners who never get compensated for that car being taken even if their debt might have only been $300. Another way they are challenging the towing system is on the grounds that the penalty is excessive for a parking violation, among other issues. All of this might seem like common sense but we will have to wait and see what the courts decide and how the city responds.