What does “Lien” mean?
But most states allow “mechanic’s liens” against vehicles. Usually a mechanics lien is not applied to a vehicle without due cause, usually because the owner of the vehicle didn’t pay a bill promptly. If the towing company is applying a lien to any vehicle they tow, this is probably illegal and I would seek the advice of an attorney. If they are charging this amount, and not filing a lien with the state, then that would constitute fraud.
Not only can’t you fight City Hall (most of the time), you can’t really fight their associates, like towing companies. Not a Lawyer, but I suspect the towing company is allowed to take precautions to ensure they get paid. Since the towee is often not at the point of tow, the company is taking a risk that maybe they won’t get paid. As a precaution, they apparently file a lien on the car’s title. How nice for them. It’s similar to what happens if you bounce a check. The collection company can charge YOU for their costs in collecting. Sounds a bit unfair, but likely legal.