What Are the Repossession Laws in California?

California has specific laws governing the repossession of vehicles, which can have significant consequences for consumers. Understanding these laws is crucial for anyone facing the possibility of having their car repossessed.

When Can Cars Be Repossessed in California?

California law permits cars to be repossessed after a single late or missed loan payment. Additionally, vehicles may be repossessed if the owner fails to maintain the required insurance coverage. Importantly, there is no legally required grace period, and the repossession company does not have to provide any notice before seizing the vehicle.

Limitations on Repossession Agents

Repossession agents in California must follow certain restrictions on where and how they can seize a vehicle. They are not allowed to enter private property, such as a gated community or a locked garage, without the consent of the property owner or person in control of the property. Additionally, they are prohibited from breaching the peace, which means they cannot use physical force, threats, or intimidation tactics during the repossession process.

Rights After Repossession

Even after a vehicle has been repossessed, the consumer still has certain rights. The repossession agency must provide the owner with a notice of seizure within 48 hours, as well as an inventory of any personal effects left in the vehicle. The consumer has 60 days to retrieve these personal items before the agency can dispose of them. Additionally, the consumer may have the opportunity to reinstate the loan or redeem the vehicle before it is sold at auction.