Do Car Repossessions Violate Stay-At-Home Orders?

This post has been updated as of February 17, 2021, based on developments. It seems the answer is, “It may, but it’s unclear.” Looking just at the text of California’s stay-at-home orders, they appear to have precluded repossessions while in effect. By not specifically exempting workers in the collection or collateral recovery aspects of the…

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Voluntary Repossessions of Motor Vehicles

Consumers sometimes consider voluntary repossessions or surrenders of their vehicles when they are unable to meet their payment obligations under their car notes or loans. A voluntary surrender occurs when the consumer contacts the finance company or lender and makes arrangements to turn over the vehicle. The creditor then may send a repossession company to…

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Car Repossessions in Garages, Gated Communities or Gated Areas

A repossessor sometimes completes a repossession by following a car into a gated area or gated community (sometimes referred to as “piggybacking”), or the repossessor drives in when someone exits the gate. Both situations amount to a breach of the peace and are unlawful. California statutory law and caselaw define a breach of the peace…

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Licensing Requirements for Repossessors

In California, a company needs a “repossession agency” license to locate or recover a vehicle. The licensing is provided by the Bureau of Security and Investigative Services (BSIS), a division of the California Department of Consumer Affairs. Acting as a repossession agency without a license is a crime and grounds for a civil lawsuit in…

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Repossessors & The Fair Debt Collection Laws

A repossessor who takes – or attempts to take – property in breach of the peace (e.g., by force or by illegally entering a locked garage) can be sued for violations of the fair debt collection laws. In fact, the repossessor can be sued under both the federal Fair Debt Collection Practices Act and the…

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