Repossession Rights 

California Repossession and Debtors' Rights Attorneys

Has your vehicle been repossessed? As a debtor, it is important to understand that you have specific rights. If the loan company repossessed your car, contact William M. Krieg & Associates today.

What are my rights if my car is repossessed?

California law generally allows a creditor to repossess your vehicle without prior notice even if you are only one day late on your payment. Once the vehicle is repossessed, however, California law requires the creditor to follow very strict notice requirements in order to claim a right to any deficiency balance.

A deficiency balance is the difference between the amount you owe on the loan, together with any repossession fees or other costs, and the amount the creditor receives for selling the vehicle. For example, if the creditor repossessed your vehicle and sold it at auction for $5,000, but you still owed $15,000 on your auto loan, the creditor would be entitled to collect the $10,000 deficiency if it follows the correct notice procedures under California law. Keep in mind that most creditors auction the vehicles for less than its fair market value, thus increasing any deficiency you may owe.

If your vehicle has been repossessed, the creditor is required to provide you written notice of its intent to sell your vehicle 15 days before the sale is to take place. This notice must be provided to every person liable on the loan contract. Generally, the notice must inform you of your right to redeem the vehicle by paying the outstanding balance of the loan in full, plus any repossession costs or storage fees.

You also have a right to reinstate the vehicle by paying the past due monthly payments, plus any repossession costs or storage fees. The creditor may deny the buyer's right to reinstate the loan only if there is legal justification (i.e. if the buyer lied on the credit application, intentionally concealed the vehicle to avoid repossession, failed to take care of the vehicle, or threatened to commit acts of violence on the repossessor). However, you should have an attorney review the post-repossession notice to determine if it contains all the required legal disclosures. Remember, the creditor may not collect any money from you unless it follows the proper notice requirements.

What if I am already being sued by a creditor on a repossession?

If you have already been sued by a creditor after repossession, contact a debtors' rights attorney immediately to discuss your legal rights. Under California law, you only have 30 days to answer the complaint or you might lose your legal rights and have a judgment entered against you. If a default judgment has already been entered against you, you must act quickly to have an attorney set it aside. The longer you wait, the less likely a judge will be inclined to set the judgment aside. Don't assume you have no defense until you contact an experienced consumer protection attorney.

Repossession companies - breach of the peace

A repossession company may repossess a vehicle from a driveway, open carport, or a public area. The repossession company may not break into your property, threaten or touch you, misrepresent him-or herself as a peace officer, or damage your vehicle while attempting to repossess it. If you had personal property in the vehicle at the time of repossession, the repossessor is required to provide you an inventory of your belongings within 48 hours of repossession, and must hold it for 60 days.

Other tactics used by the creditor to repossess

Creditors may try to repossess your vehicle where there has been no default (i.e. you have not missed any monthly payments), or may demand more than your past due monthly payments in order to reinstate the loan. If this happens to you, please contact us immediately.

Contact William M. Krieg & Associates for a free consultation with an experienced repossession debtors' rights lawyer in Central California.