California Car Repo Laws

According to a lawyer who specializes in repossessions, Alexander B. Trueblood, California has repossession laws that are among the most strict in the nation. For example, the repossession companies do not have to warn a consumer before it repossesses a car, but it must send a notice after the car is picked up. Failure to do so will result in the repo company being unable to collect fees in court. If you are a California resident and you are subject to having your car repossessed, it pays to know the California laws.

If Your Car Is Repossessed

A lender can repossess an automobile even if you are only one day late in making your payment. A day or two after it has been repossessed, you will receive a post-repossession notice that will tell you what you must pay to get your car back. That figure will contain the monthly payments that you have missed as well as the cost of repossession and any storage charges. If you fail to come up with that payment, your car will be auctioned, usually within two weeks of your receiving the notice. The amount of money received for your auto will serve to reduce what you owe, and the lender will expect you to pay all of it. Remember that you car will be sold at auction, so the proceeds that will be applied to your loan ordinarily is less than you expect. If you leased the car, you will not have the option to restart your payments, and the car will be auctioned within two weeks of the post-repossession notice.

Where It's Legal to Repossess

As a general rule, a repossession company can take your car from a parking lot where you work, a open carport or a driveway at your home, or any other outdoor place where you may have left the car to avoid repossession. However, they are prohibited from taking the car from a locked or closed garage. Furthermore, they may not force their way into your house or threaten you in any way or force you off the road to take your car. Finally, unless you have already been sued, a police officer or a sheriff's detective cannot accompany the company's employee on the call.

Who Can Repossess Your Car

Your car can be repossessed by only by a company with a valid repossession agency license. It is against the law in California for a tow truck operator and others to repossess your car without a license.