California Repossession Law Blog

When cars are repossessed, the owners' personal property is removed from the cars and stored by the repo company. The California Business & Professions Code requires repo companies to send the owner an inventory of the goods and a disclosure of charges for the storage. However, there is no law governing the amount of money the repo companies may charge for storage of goods.

Unfortunately, some repo companies are taking advantage of owners by demanding excessive fees for storage. For example, H & H Recovery in Livermore, CA recently demanded $30 a day plus a $50 admin fee to store some papers and goods that would fit in a garbage bag. The owner got the run-around for a month trying to get his papers and goods back. The company demanded over $900 to get the goods back. Charging rental car rates for storing a quantity is goods is unconscionable. The owner is considering legal action at this time.

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The California Bureau of Security and Investigative Services regulates auto repo companies. The agency cites and fines licensed repo companies for violating the statutes that govern their conduct. Violations include entering property without the owner's consent, failing to report violent acts, failing to register employees, and using owner 's personal property. The agency website lists 26 violations by twelve repo companies. Fines ranged up to $500 per violation.

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THe NY Times reports that repo companies are increasingly using a digital system to spot cars on lenders' repo lists. MVTRAC provides mobile digital cameras to repo companies that take pictures of license plates as the repo truck goes down the road. The data is matched to a list of licenses representing cars to be repossessed. When a match is found, the operator brings up additional info on the car to determine he has spotted a wanted car. The repo companies' incentives are to realize the $200 to $400 repo fee from the lenders. Police departments are using the same technology to spot stolen cars. http://www.nytimes.com/2010/02/28/automobiles/28REPO.html?pagewanted=2&ref=automobiles

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AOL Autos online reports that as the economy sinks, repossessions are increasing. Major auction houses like Manheim Auto Auction report increased sales of repossessed autos. A repo professional in Orange County said the firm just had its best month. He said his firm was "popping" luxury cars from owners who were upside down on their house and cars. The repo man added he sometimes wished business were not so good proving even repo men have a heart.

The AOL Autos article describes the repossesion process starting with the repossesson and eventual sale of the vehicle at auction houses. The repossessed vehicles generally sell for what other vehicles sell for at the auction house with the main variable being the condition of the vehicle.

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