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I used to have this problem with the Alko hitch but have totally cured it. You need some fine grade wet and dry paper to firstly clean the towball to remove any rust and fine dirt particles then rub the surfaces of the internal friction pads inside the hitch with a medium grade paper. Clean the towball with a clean dry cloth then spray some brake and clutch cleaner up inside the hitch on the friction pads. The pads are manufactured from the same material as vehicle brake and clutch linings so this method thoroughly cleans the friction pad surfaces. I recommend the Holts brand as it will spray when used upside down which is exactly what you need. Each time I hitch up I always do the same process which has now eliminated the creaking for good.

http://www.holtsauto.com/products/item/repair-and-maintenance/maintenance/simoniz-brake-and-clutch-cleaner