Auto Data Direct on Tuesday launched DropClaim.com, a secure, paperless compliance tool for California tow operators and businesses taking possession of towed vehicles, which could include units in the repossession process.

The company explained that in January, new state requirements became effective as a result of passage of California Assembly Bill 1222. The new law requires specific documentation and record keeping between a tow company and any business such as a dealership, body shop or mechanic that takes possession of a towed vehicle.

DropClaim.com is a Web-based mobile app that can allow affected industries to comply with the new law using their laptop, smartphone or desktop computer while securely protecting any private information included in the transfer of a vehicle.

“ADD is constantly looking at legislation affecting the industries we serve,” chief executive officer Jim Taylor said. “Our focus since the company was founded in 1999 is to provide effective solutions to both industry and government to comply with regulations at the state and federal level.”

Taylor explained that when AB 1222 was signed into law, his team began looking for a way to address the tow industry’s No. 1 concern of having to transfer a wrecker operator’s driver’s license number to the claimant.

“Not only were we able to develop a process of encrypting that protected information, we can now offer a paperless and secure system for both the tow (Drop) company, and the receiver of the vehicle (claim) which archives the transaction electronically,” he said.

Taylor went on to mention the new law specifically requires tow operators to document information about each vehicle towed, the towing company, the tow truck drive, and the drop-off location. Businesses receiving the vehicle must affirm receipt of each vehicle and maintain the documentation once the vehicle is claimed. 

ADD added that willful violation of the new law can result in a fine of up to $2,500, up to three months in jail, or both.

DropClaim.com can offer the tow or wrecker company a secure process to protect personal data, the ability to populate the required information in a “drop document” automatically, and create an Express Claim code that is easily transferred to the claimant by simply scanning a QR code with a smart phone.

Cost to the tow company is $10 per month plus $1 per driver registered.

For the claimant, the tool allows for verification of vehicle information prior to confirming receipt of the vehicle, allows for paperless receipt of the vehicle through the QR code, and can provide an online manifest of claimed vehicles for a monthly fee of $10. Claimant services, without the manifest, are free.

For more information on this innovative solution for compliance of California AB 1222, visit DropClaim.com or call to speak with a customer service representative at (866) 923-3123.