In California, a motorist’s vehicle can taken from them for missing payments on their car loan or violating the terms of their lease agreement. This process is known as vehicle repossession. Repossession is lawful only when the written contract for the purchase of the vehicle states that the creditor has the right to repossess the vehicle if the purchaser violates the terms. Typically, these contracts specify the precise violations such as missing one or more payments or damaging the vehicle.
Is Vehicle Repossession Legal if there is a “Breach of Peace?”
No. According to the California Commercial Code 9609, the party reclaiming their vehicle may not repossess the vehicle if there is a breach of the peace. A breach of peace renders repossession unlawful. For example, violence, physical force, or threats cannot be used during the repossession of a vehicle. In addition, repossession companies are not allowed to do the following during the repossession process:
- Harm private property
- Enter into private buildings
- Give false information about their purpose for repossession
However, a vehicle is allowed to be repossessed if it is parked outside, or in an open garage. For this reason, repossession companies will aim to reclaim their vehicle when they know the customer is not around. The laws make these repossession rules clear in California Commercial Code 9609, which states:
“(a) After default, a secured party may do both of the following:
(1) Take possession of the collateral.
(2) Without removal, render equipment unusable and dispose of collateral on a debtor’s premises under Section 9610.
(b) A secured party may proceed under subdivision (a) in either of the following ways:
(1) Pursuant to judicial process.
(2) Without judicial process, if it proceeds without breach of the peace.
(c) If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.”
What Do I Do After My Vehicle Has Been Repossessed?
If your vehicle has just been repossessed, you might be wondering what your next steps should be. Fortunately, there is a set of rules that the creditors and repossession companies must follow after a vehicle repossession. In California, you’re only allowed to reclaim your vehicle after repossession once every 12 months and twice over the length of the contract, so it is important to understand the necessary steps to reinstate ownership of your vehicle.
Within 48 hours of the repossession, the company who claimed the vehicle must send you a Notice of Seizure. This letter will include the contact information for both the creditor and repossession company, along with any additional fees included in the repossession of the vehicle. Also, you will be sent an Inventory of Personal Effects, which is a list of items left inside of the vehicle and how you can retrieve them. Anything that is attached to the vehicle such as a stereo system, or new exhaust system cannot be reclaimed.
After repossession, it is important to remember that you will have a chance to reclaim your vehicle. The creditor does have a right to sell the vehicle at a public or private sale. However, they are required to send you a consumer pre-sale notice 15 days in advance of the sale. Included in that notice will be the option for you to reinstate your vehicle. To reinstate your vehicle after repossession, you must pay back all of your missed payments, as well as late fees or costs accrued by the creditor.
Find Legal Support for Car Repossession in California
If you believe you have been mistreated during a car repossession or you feel the loan lender did not comply with California Law, the attorneys at Maison Law can help. We can help you take control of your situation and file a lawsuit in court if necessary. For legal assistance, contact Maison Law today for a free consultation and case evaluation. Our firm does not charge any upfront fees for our services and you don’t pay a cent until we’ve won your case.
