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

(A)    YES, EXCEPT:  a private building which means and includes any dwelling, outbuilding, OR other enclosed structure or any secured area which means and includes any fenced and locked area.

(Q) At what point has a motor vehicle been legally repossessed

(A)    With regard to collateral subject to registration under the Vehicle Code, a repossession occurs when the repossessor gains entry to the collateral or when the collateral becomes connected to a tow truck. [B&P 7507.12]

7507.12.  (a) With regard to collateral subject to registration

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