Vehicle Repossessions

Vehicle Repossessions

RC Phillips, DDA (Ret.)
August, 2014

(Q) Who may legally undertake repossession assignments

(A)    Unless exempted pursuant to B&P Code 7500.3, only persons holding a valid repossession agency license or registration, issued by the State of California, may engage in the activities of a repossession agency. [B&P 7500.3]

(Q) When may a vehicle secured by a contractual agreement be repossessed

(A)    Normally, only when the buyer has defaulted in the performance of any obligation under the contract. Ordinarily a default occurs when an installment payment is delinquent. However, if the consumer is required by the contract to maintain insurance, a failure to do so may constitute a default, as allowing the collateral to be jeopardized. [CC 2983.3]

(Q) May a repossessor lawfully enter any area for purposes of repossession ....