Towing Issues: auction by tow company of stolen vehicles, tow companies, public auction

Question

what state guidelines regulate tow companies to auction reported stolen vehicles what is necessary to be compensated for the loss

Answer
Since the state wasn't mentioned my response is limited. Usually with a stolen vehicle there is a procedure for claiming the vehicle for reimbursement or no charge for the towing and storage. Not knowing your state I can't give the statue or ordinance but here is a example of the statue in Virginia http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+46.2-1209 and must be followed exactly. Any deviation in the code could forfeit the claim to any compensation and the vehicle. Generally any public auction with a stolen vehicle (once it's cleared by the police) works the same as any other unclaimed and unpaid vehicle. If the vehicle's tow bill wasn't satisfied or claimed within the time limits by the registered owner and the vehicle went to auction, then any proceeds (if any) over the tow bill received at auction shall go to, if one was found, to the last properly registered owner or the state.