GASTON COUNTY, N.C. – A local tow company in Gaston County is facing a significant legal challenge after being accused of engaging in illegal towing practices. Jack's Towing and Recovery Service, LLC, based in Lowell, is set to go to trial following a civil lawsuit filed by the City of Gastonia.
The lawsuit, which was filed on March 20, alleges that the tow company has been conducting trespass tows from private parking lots and refusing to accept credit card payments from customers. The complaint outlines several incidents where the company, owned by Marshall Gregory, is said to have towed vehicles from private properties, including a church, and demanded cash payments exceeding $1,000 to retrieve the vehicles.
According to Gastonia's Code of Ordinances, no towing service is allowed to conduct a trespass tow from a private parking lot for compensation without complying with specific provisions. These provisions include the posting of notice signs at each access point to the property and within five feet of the street right of way line, as well as the inclusion of statements indicating that credit and debit cards may be used for payment.
The business was administratively dissolved by the North Carolina Secretary of State on November 21, 2025, for failure to file an annual report. However, it was reinstated on or around March 20, the same day the lawsuit was filed.
North Carolina Attorney General Jeff Jackson has warned towing companies across the state that his office will take a tough stance against those accused of predatory towing practices. "If you're a towing company that follows the rules, you're good to go," Jackson said. "But if you're making a buck by breaking the law, we've got a new playbook for going after you, and we will."
Court documents show that Gregory denies the allegations made in the complaint, stating that he is not personally liable for the obligations, debts, or alleged ordinance violations of Jack's Towing. In response to the complaint, filed on June 11, Gregory asserts that he is "not personally liable for the obligations, debts, or alleged ordinance violations of Jack's Towing solely by reason of being its member, owner, manager, or other limited liability company official."
The City of Gastonia is seeking an injunction to prevent the company from violating city towing ordinances in the future. The trial is set to begin on July 12, 2027.
The case has drawn attention to the broader issue of predatory towing practices, which have been a concern for many communities. Consumers and local governments alike are pushing for stricter regulations and enforcement to protect property owners and ensure fair practices within the towing industry.
The incident at Jack's Towing and Recovery Service, LLC, serves as a stark reminder of the potential consequences for businesses that fail to comply with legal requirements. As the trial approaches, the outcome could have significant implications for the company and the broader towing industry in Gaston County and beyond.
The case has also highlighted the importance of public awareness regarding the rights of property owners and consumers when it comes to interactions with towing companies. It is crucial for individuals to understand their rights and to report any suspicious or illegal activities to the appropriate authorities.
As the trial unfolds, the community will be closely watching to see how the legal system addresses these allegations and what measures, if any, are taken to prevent similar incidents in the future. The outcome could set a precedent for how towing companies are regulated and how consumers are protected in Gaston County and across North Carolina.
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