Is the Impound Lot Overcharging You? The 5-Day Notice Rule Explained
Texas law requires tow yards to send you notice within 5 business days. If they missed that deadline, they may have forfeited their right to collect storage fees. Use this at your tow hearing.
Last verified: January 2026 | Based on Texas Occupations Code § 2303.151
The 5-Day Notice Rule
Under Texas Occupations Code § 2303.151, Vehicle Storage Facilities (VSFs) have strict notification requirements:
Texas-Registered Vehicles
Notice must be mailed within 5 business days of the vehicle entering storage.
Out-of-State Vehicles
Vehicles registered in other states get a 14-day window.
Why This Matters
If the VSF failed to mail notice within the required timeframe, they may forfeit the right to collect storage fees that accrued during the period they were non-compliant. This is your leverage at a tow hearing.
Storage Fee Audit Checklist
Use this checklist to identify potential violations and overcharges:
1Notice Timeline
Did you receive a notice letter?
If not, they may have violated notice requirements.
Check the postmark date on the envelope
Must be within 5 business days of impound (14 for out-of-state).
Compare postmark to your tow receipt date
Count business days only (exclude weekends/holidays).
Is your address on the notice correct?
If they sent it to wrong address, that's a violation.
2Notice Content
Description of your vehicle
Year, make, model, VIN should be accurate.
Location where vehicle is stored
Full address should be included.
Facility contact information
Phone number and business hours required.
Amount of accrued charges
Should be itemized and match posted rates.
Your rights regarding the vehicle
Including how to request a hearing.
3Fee Verification
Compare charged rates to posted rates
Check signage at lot entrance.
Verify tow fee matches receipt
Should match what wrecker company charged.
Calculate storage days correctly
Should start from actual impound date, not before.
Look for mystery fees
Admin fees, gate fees, etc. must be disclosed.
Request itemized receipt
You're entitled to see exactly what you're being charged for.
How to Check If They Missed the Deadline
Find Your Tow Receipt
Look for the date your vehicle was impounded. This is usually printed at the top of the receipt or on the police report.
Find the Envelope They Sent
If you still have the envelope the notice came in, look for the USPS postmark stamp showing the date it was mailed.
Count Business Days
Count forward from the impound date, skipping Saturdays, Sundays, and state holidays. The postmark should fall within 5 business days.
Document Everything
Take photos of the envelope showing the postmark, the notice letter, and your tow receipt. This is your evidence for a hearing.
Don't Have the Envelope?
At a tow hearing, you can request the VSF provide their certified mail records showing when notice was sent. If they can't produce proof of timely mailing, the burden is on them.
Example: Did They Miss the Deadline?
The Scenario
- Vehicle impounded: Monday, January 6, 2026
- Postmark on envelope: Monday, January 20, 2026
- Days charged: 14 days storage
The Count
- Day 1: Tuesday, Jan 7
- Day 2: Wednesday, Jan 8
- Day 3: Thursday, Jan 9
- Day 4: Friday, Jan 10
- (Skip Jan 11-12, weekend)
- Day 5: Monday, Jan 13
- Deadline: January 13, 2026
VIOLATION FOUND
Notice was mailed January 20 — 7 days late. The VSF missed the deadline by a full week. You may be entitled to reduction of storage fees at a tow hearing.
Found a Violation? Here's What to Do
If Still Within 14 Days
- File a tow hearing request immediately
- Bring your evidence (envelope, receipt, photos)
- Present the deadline violation to the judge
- Request reduction or elimination of storage fees
If Past 14 Days
- File a complaint with TDLR anyway
- Document all violations for the record
- Consider consulting an attorney
- May have grounds for civil action for damages
At the Hearing
Present your evidence calmly and factually: "Your Honor, the vehicle was impounded on [date]. Under Texas Occupations Code § 2303.151, notice was required within 5 business days by [date]. The postmark on this envelope shows it was mailed on [later date], [X] days past the deadline. I'm requesting that storage fees be reduced accordingly."
Frequently Asked Questions
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