​

California has strict laws that protect consumers whose cars are repossessed. Those laws govern how your car can be repossessed and what the finance company or lender must do after it repossesses your car. Below is a brief overview of some of those laws.  

Unlawful Repossession

 

While your finance company can repossess your car if you are in default on your loan contract (i.e., you are behind on your monthly payments), it cannot breach the peace in doing so. That means, for example, that your car cannot be repossessed over your objection, the repossession company cannot use force or threats, and the repossession company may not break a lock to get into a garage or past a gate. 

If there is a breach of the peace, you could have claims against the repossession company, and we can help you determine that.

​

Your Rights After Repossession
 

After your car is repossessed, there is a written notice that your finance company must send you. Among other things, the post-repossession notice has to provide you with specific information regarding your rights to get your car back, either by redeeming the car or reinstating the contract. The redemption and reinstatement rights are important, and you have only a short time to exercise them. If you do not redeem or reinstate before the applicable time period passes, the finance company can sell your car at auction. The finance company will likely then seek to hold you responsible for the contract balance that often remains after the money obtained by selling the car is applied to what is owed under the contract. That outstanding amount is called the deficiency balance, and the finance company will usually pursue you to collect that amount.  

However, if the finance company does not send you a post-repossession notice that complies fully with the law, the finance company may not claim that you owe a deficiency balance. Put another way, if the notice is not accurate and complete, you are not liable for a deficiency balance.   

If your car has been repossessed and you have questions about your legal rights, please contact the Gratch Law Group for a free consultation. We can review your post-repossession notice to see if it is fully compliant. If it is not, we may be able to help you.  
 

​

This overview does not constitute legal advice. It is intended solely for general information purposes and provides only a  broad sense of possible legal issues. Any legal rights and remedies you may have will depend on your specific experience(s) and facts.

​

​