My car was towed and I don't want it back but now the tow company wants me to pay $360 to turn over ownership; is this legal?

The lien will likely affect your credit if it is filed as it shows up on credit searches.  if this has already happended then the credit has already taken a small hit.  if you do not want your car back and you want the tow company to keep it, just pay the $360 and walk away as the longer you wait the more money that will add on to the money due.  it sounds like you want to preserve your credit.  if this is the case, then you need to pay the money to avoid any further issues with your car.  if you do nothing, the tow company may file a claim against you in small claims court to obtain the money owed.  i suggest that you call the tow company and negotiate a payment of $150 and give them the title to the car.  hopefully they will agree with you to avoid you moving out of town and then they will not have a title or money and they will have to find you in order to sue you.  nevertheless, the key to this is peace of mind for you.  thus, pay the money and be done with the car.