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Home > FAQ's > Consumer Defense
Consumer Law / Consumer Defense - Frequently Asked QuestionsConsumer Law / Consumer Defense - Frequently Asked Questions

SERVING THE RESIDENTS OF LONG BEACH CONSUMER LAW/CONSUMER DEFENSE ATTORNEYS, ORANGE COUNTY CONSUMER LAW/CONSUMER DEFENSE ATTORNEYS, AND THE GREATER LOS ANGELES COUNTY CONSUMER LAW/CONSUMER DEFENSE ATTORNEYS


What rights does a consumer have when a vehicle has been repossessed?

California's Rees-Levering Automobile Sales and Finance Act outlines these basic rights for the consumer: at least 15 days' written notice must be given of intent to dispose of a repossessed or surrendered motor vehicle to all persons liable on the contract (this includes the named purchaser, and any co-signers to the contract) and served personally or by certified or first-class mail, postage prepaid, to the last known address of the persons named in the contract. In order to collect a deficiency, the notice is required to be given within 60 days of repossession, AND must include the following:


  • The right to reclaim the vehicle by paying in full the entire outstanding balance within 15 days. Relevant information regarding payment in full must include an itemization of the balance, any delinquency, collection or repossession costs and fees, as well as the amount of any credit for unearned finance charges or canceled insurance, as well as the name and address of whom the payment should be made;

  • A conditional right to reclaim the vehicle by paying the past due amounts and repossession costs/fees; a condition which is allowed once every 12 months and twice total, within 15 days provided that the consumer did not lie on credit application, hid the car, failed to care for the car, or threatened to or did commit acts of violence on repossessor;

  • Upon written request the redemption or reinstatement period will be extended 10 days (this requirement also includes that a form and necessary instructions be provided);

  • The location the vehicle will be taken to upon repossession;


 
  • Upon written request a written accounting of the disposition of the vehicle and that upon disposition the consumer will be liable for the deficiency balance plus interest at the agreed contract rate until the entry of a judgment, and finally;

  • Includes the notice, in at least 10-point bold print reading, “NOTICE. YOU MAY BE SUBJECT TO SUIT AND LIABILITY IF THE AMOUNT OBTAINED UPON DISPOSITION OF THE VEHICLE IS INSUFFICIENT TO PAY THE CONTRACT BALANCE AND ANY OTHER AMOUNTS DUE."

Unless it is automatically provided to the consumer within 45 days after the disposition of a vehicle, a written accounting of the disposition, including the gross proceeds, expenses incurred for the repossession, storage and preparation for the re-sale, as well as reasonable attorney fees and legal fees, and satisfaction of any subordinate lien that has been properly demanded must be provided to any other person liable (i.e. a co-signer or co-borrower) on the contract within 45 days after written request if said request is made within one year. This law does not apply to a lender licensed under Section 22000. et seq. or 24000, et seq. of the California Financial Code. Assuming the creditor is entitled to the deficiency, the entire amount is now due, with no automatic right to installment payments.

Call Smith and Garg today at 1.877.517.4275 or complete our contact form and let us assist you with your consumer defense needs.