BUSINESS AND PROFESSIONS CODE
SECTION 7507-7507.13
7507. A licensee shall notify the bureau within 30 days of any
change of its corporate officers or of the addition of any partners.
Applications, on forms prescribed by the director, shall be submitted
by all new officers and partners. The director may suspend or revoke
a license issued under this chapter if the director determines that
a new officer or partner has committed any act that constitutes
grounds for the denial of a license pursuant to Section 7503.5.
7507.1. A licensee or a qualified certificate holder shall, within
30 days after such change, notify the bureau of any change of his or
her address. The principal place of business may be at a residence or
at a business address, but it shall be the place at which the
licensee maintains a permanent office.
7507.2. (a) A licensee is responsible for those actions that are
performed in violation of this chapter by his or her registrants,
including his or her manager, when acting within the course and scope
of his or her employment or contract.
(b) Each licensee shall maintain a file or record of the name,
address, commencing date of employment or retention, and position of
each registrant, and the date of termination of the employment or
contract when a registrant is terminated. The file and records,
together with usual compensation records, shall be available for
inspection by the bureau, and copies thereof, and information
pertaining thereto or contained therein, shall be submitted to the
bureau upon request.
7507.3. A repossession agency shall be required to keep and
maintain adequate records of all transactions, including, but not
limited to, assignment forms; vehicle report of repossession required
by Section 28 of the Vehicle Code; vehicle condition reports,
including odometer readings, if available; personal effects
inventory; notice of seizure; and records of all transactions
pertaining to the sale of collateral that has been repossessed,
including, but not limited to, bids solicited and received, cash
received, deposits made to the trust account, remittances to the
seller, and allocation of any moneys not so remitted to appropriate
ledger accounts. Records, including bank statements of the trust
account, shall be retained for a period of not less than four years
and shall be available for examination by the bureau upon demand. In
addition, collateral and personal effects storage areas shall be made
accessible for inspection by the bureau upon demand. An assignment
form may be an original, a photocopy, a facsimile copy, or a copy
stored in an electronic format.
7507.4. A licensed repossession agency or its registrants may make
demand for payment in lieu of repossession, if the demand is made
pursuant to an assignment for repossession.
In making demand upon a debtor for a money payment in lieu of
repossession, the repossessor shall present the demand in compliance
with the Rosenthal Fair Debt Collection Act (Title 1.6C (commencing
with Section 1788) of Part 4 of Division 3 of the Civil Code),
setting forth in the demand only the amount that was specified by the
creditor in the repossession referral and the fees that are properly
chargeable. Itemized receipts shall be furnished the debtor at the
time payment is received. Payments received shall forthwith be
transmitted to the creditor, disclosing the full amount of money
received from the debtor in addition to the contract payments.
7507.5. No charge shall be made for services incurred in connection
with the recovery, transportation, and storage of collateral except
under terms agreed to by the legal owner at the time of the
repossession authorization or specifically agreed upon at a
subsequent time. Repair work may not be charged to the legal owner
unless expressly authorized by him or her.
7507.6. (a) Within seven days after a violent act has occurred
involving a licensee, or any officer, partner, qualified certificate
holder, registrant or employee of a licensee, while acting within the
course and scope of his or her employment or contract, that results
in a police report or bodily harm or bodily injury, the licensee or
the licensee's qualified certificate holder or registrant, shall mail
or deliver to the chief a notice concerning the incident upon a form
provided by the bureau.
(b) Within seven days after the occurrence of a violent act or a
threatened violent act involving a licensee, or any officer, partner,
qualified certificate holder, registrant, or employee of a licensee
while acting within the course and scope of his or her employment or
contract, that results in a police report or bodily harm or bodily
injury, the licensee or the licensee's qualified certificate holder
or registrant shall send by certified mail, return receipt requested,
a notice containing information about the incident to the person or
individual who made the assignment. If the assignor is not the legal
owner, the assignor shall notify the legal owner of the contents of
the notice.
(c) A licensee, qualified certificate holder, or registrant may
send the notice set forth in subdivision (b) for a violent act or
threatened violent act even if a police report is not made or no
bodily harm or bodily injury occurs. Any notice of a threatened
violent act provided pursuant to subdivision (b) may only be used to
notify a subsequent assignee and not for any collateral purpose.
Nothing in this subdivision or subdivision (b) shall be construed to
provide immunity against any claim for defamation.
7507.7. Within seven days after receiving a final civil court
judgment filed against the licensee or any officer, partner,
qualified certificate holder, or registrant of a licensee, for an
amount of more than the then prevailing maximum claim that may be
brought in a small claims court pertaining to an act done within the
course and scope of his or her employment or contract, the licensee,
or his or her qualified certificate holder, or his or her registrant,
shall mail or deliver to the chief a copy of the judgment.
7507.8. Every advertisement by a licensee, soliciting or
advertising business, shall contain the licensee's name, address, and
license number as they appear in the records of the bureau.
7507.9. Personal effects shall be removed from the collateral,
including any personal effect that is mounted but detachable from the
collateral by a release mechanism. A complete and accurate inventory
of the personal effects shall be made, and the personal effects
shall be labeled and stored by the licensee for a minimum of 60 days
in a secure manner, except those personal effects removed by or in
the presence of the debtor or the party in possession of the
collateral at the time of the repossession. If the licensee or the
licensee's agent cannot determine whether the property attached to
the collateral is a personal effect or a part of the collateral, then
that fact shall be noted on the inventory and the licensee or agent
shall not be obligated to remove the item from the collateral, unless
the item can be removed without the use of tools, in which case it
shall be removed and inventoried. The licensee or the licensee's
agent shall notify the debtor that if the debtor takes the position
that an item is a personal effect, then the debtor shall contact the
legal owner to resolve the issue.
(a) The date and time the inventory is made shall be indicated.
The permanent records of the licensee shall indicate the name of the
employee or registrant who performed the inventory.
(b) The following items of personal effects are items determined
to present a danger or health hazard when recovered by the licensee
and shall be disposed of in the following manner:
(1) Deadly weapons and dangerous drugs shall be turned over to any
law enforcement agency for retention. These items shall be entered
on the inventory and a notation shall be made as to the date and the
time and the place the deadly weapon or dangerous drug was turned
over to the law enforcement agency, and a receipt from the law
enforcement agency shall be maintained in the records of the
repossession agency.
(2) Combustibles shall be inventoried and noted as "disposed of,
dangerous combustible," and the item shall be disposed of in a
reasonable and safe manner.
(3) Food and other health hazard items shall be inventoried and
noted as "disposed of, health hazard," and disposed of in a
reasonable and safe manner.
(c) Personal effects may be disposed of after being held for at
least 60 days. The inventory, and adequate information as to how,
when, and to whom the personal effects were disposed of, shall be
filed in the permanent records of the licensee.
(d) The inventory shall include the name, address, business hours,
and telephone number of the repossession agency to contact for
recovering the personal effects and an itemization of all personal
effects removal and storage charges that will be made by the
repossession agency. The inventory shall also include the following
statement: "Please be advised that the property listed on this
inventory will be disposed of by the repossession agency after being
held for 60 days from the date of this notice IF UNCLAIMED."
(e) The inventory shall be provided to a debtor not later than 48
hours after the recovery of the collateral, except that if:
(1) The 48-hour period encompasses a Saturday, Sunday, or postal
holiday, the inventory shall be provided no later than 72 hours after
the recovery of the collateral.
(2) The 48-hour period encompasses a Saturday or Sunday and a
postal holiday, the inventory shall be provided no later than 96
hours after the recovery of the collateral.
(3) Inventory resulting from repossession of a yacht, motor home,
or travel trailer is such that it shall take at least four hours to
inventory, then the inventory shall be provided no later than 96
hours after the recovery of the collateral. When the 96-hour period
encompasses a Saturday, Sunday, or postal holiday, the inventory
shall be provided no later than 120 hours after the recovery of the
collateral.
(f) Environmental, Olympic, special interest, or other license
plates issued pursuant to Article 8 (commencing with Section 5000),
Article 8.4 (commencing with Section 5060) or Article 8.5 (commencing
with Section 5100) of Chapter 1 of Division 3 of the Vehicle Code
that remain the personal effects of the debtor shall be removed from
the collateral and inventoried pursuant to this section. If the
plates are not claimed by the debtor within 60 days, they shall
either (1) be effectively destroyed and the licensee shall, within 30
days thereafter, notify the Department of Motor Vehicles of their
effective destruction on a form promulgated by the chief that has
been approved as to form by the Director of the Department of Motor
Vehicles; or (2) be retained by the licensee indefinitely to be
returned to the debtor upon request, in which case the licensee shall
not charge more than 60 days' storage on the plates.
(g) The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
(h) With the consent of the licensee, the debtor may waive the
preparation and presentation of an inventory if the debtor redeems
the personal effects or other personal property not covered by a
security interest within the time period for the notices required by
this section and signs a statement that he or she has received all
the property.
(i) If personal effects or other personal property not covered by
a security agreement are to be released to someone other than the
debtor, the repossession agency may request written authorization to
do so from the debtor.
(j) The inventory shall be a confidential document. A licensee
shall only disclose the contents of the inventory under the following
circumstances:
(1) In response to the order of a court having jurisdiction to
issue the order.
(2) In compliance with a lawful subpoena issued by a court of
competent jurisdiction.
(3) When the debtor has consented in writing to the release and
the written consent is signed and dated by the debtor subsequent to
the repossession and states the entity or entities to whom the
contents of the inventory may be disclosed.
(4) To the debtor.
7507.10. A licensee shall serve a debtor with a notice of seizure
as soon as possible after the recovery of collateral and not later
than 48 hours, except that if the 48-hour period encompasses a
Saturday, Sunday, or postal holiday, the notice of seizure shall be
provided not later than 72 hours or, if the 48-hour period
encompasses a Saturday or Sunday and a postal holiday, the notice of
seizure shall be provided not later than 96 hours, after the
repossession of collateral. The notice shall include all of the
following:
(a) The name, address, and telephone number of the legal owner to
be contacted regarding the repossession.
(b) The name, address, and telephone number of the repossession
agency to be contacted regarding the repossession.
(c) A statement printed on the notice containing the following:
"Repossessors are regulated by the Bureau of Security and
Investigative Services, Department of Consumer Affairs, Sacramento,
CA. Repossessors are required to provide you, not later than 48 hours
after the recovery of collateral, with an inventory of personal
effects or other personal property recovered during repossession
unless the 48-hour period encompasses a Saturday, Sunday, or a postal
holiday, then the inventory shall be provided no later than 96 hours
after the recovery of collateral."
(d) A disclosure that "Damage to a vehicle during or subsequent to
a repossession and only while the vehicle is in possession of the
repossession agency and which is caused by the repossession agency is
the liability of the repossession agency. A mechanical, electrical,
or tire failure, or the loss of, or any damage to, or as a result of,
or caused by, any aftermarket parts and accessories not in
compliance with Section 24008 of the Vehicle Code shall not be the
responsibility of the repossession agency unless the failure, damage,
or loss is due to the negligence of the repossession agency."
(e) If applicable, a disclosure that "Environmental, Olympic,
special interest, or other license plates issued pursuant to Article
8 (commencing with Section 5000), Article 8.4 (commencing with
Section 5060) or Article 8.5 (commencing with Section 5100) of
Chapter 1 of Division 3 of the Vehicle Code that remain the personal
effects of the debtor will be removed from the collateral and
inventoried, and that if the plates are not claimed by the debtor
within 60 days, they will be destroyed."
(f) A disclosure of the charges payable by the debtor to the
repossession agency for the storage of the collateral and personal
effects from the date of repossession until release of the property
from storage.
The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
7507.11. Any written report to a client shall be submitted by the
licensee, the qualified certificate holder, or a person authorized by
one or either of them, and the person submitting the report shall
exercise diligence in ascertaining whether or not the facts and
information in the report are true and correct.
7507.115. A licensee shall not appraise the value of any
collateral.
7507.12. With regard to collateral subject to registration under
the Vehicle Code, a repossession is complete when the repossessor
gains entry to the collateral or when the collateral becomes
connected to a tow truck or the repossessor's tow vehicle, as those
terms are defined in Section 615 of the Vehicle Code. No person other
than the legal owner may direct a repossessor to release a vehicle
without legal authority to do so.
7507.13. (a) A licensed repossession agency is not liable for the
act or omission of a legal owner, debtor, lienholder, lessor or
lessee, or an agent of any of them, in making an assignment to it or
for accepting an assignment from any legal owner, debtor, lienholder,
lessor or lessee, or an agent of any of them, and is entitled to
indemnity from the legal owner, debtor, lienholder, lessor or lessee
for any loss, damage, cost, or expense, including court costs and
attorney's fees, that it may reasonably incur as a result thereof.
Nothing in this subdivision limits the liability of any person for
his or her tortious conduct.
(b) The legal owner, debtor, lienholder, lessor or lessee, or the
agent of any of them, is not liable for any act or omission by a
licensed repossession agency, or its agent, in carrying out an
assignment and is entitled to indemnity from the repossession agency
for any loss, damage, cost, or expense, including court costs and
attorney's fees, that the legal owner, debtor, lienholder, lessor or
lessee, or the agent of any of them, may reasonably incur as a result
thereof. Nothing in this subdivision limits the liability of any
person for his or her tortious conduct.
(c) The legal owner, debtor, lienholder, lessor or lessee, or the
agent of any of them, is not guilty of a violation of Section 7502.1
or 7502.2 if, at the time of the assignment, the party making the
assignment has in its possession a copy of the repossessor's current,
unexpired repossession agency license, and a copy of the current,
unexpired repossession agency's qualified manager's certificate, and
does not have actual knowledge of any order of suspension or
revocation of the license or certificate.
(d) Neither a licensed repossession agency nor a legal owner,
debtor, lienholder, lessor or lessee, or an agent of any of them may,
by any means, direct or indirect, express or implied, instruct or
attempt to coerce the other to violate any law, regulation, or rule
regarding the recovery of any collateral, including, but not limited
to, the provisions of this chapter or Section 9609 of the Commercial
Code.
BUSINESS AND PROFESSIONS CODE
SECTION 7507-7507.13
7507. A licensee shall notify the bureau within 30 days of any
change of its corporate officers or of the addition of any partners.
Applications, on forms prescribed by the director, shall be submitted
by all new officers and partners. The director may suspend or revoke
a license issued under this chapter if the director determines that
a new officer or partner has committed any act that constitutes
grounds for the denial of a license pursuant to Section 7503.5.
7507.1. A licensee or a qualified certificate holder shall, within
30 days after such change, notify the bureau of any change of his or
her address. The principal place of business may be at a residence or
at a business address, but it shall be the place at which the
licensee maintains a permanent office.
7507.2. (a) A licensee is responsible for those actions that are
performed in violation of this chapter by his or her registrants,
including his or her manager, when acting within the course and scope
of his or her employment or contract.
(b) Each licensee shall maintain a file or record of the name,
address, commencing date of employment or retention, and position of
each registrant, and the date of termination of the employment or
contract when a registrant is terminated. The file and records,
together with usual compensation records, shall be available for
inspection by the bureau, and copies thereof, and information
pertaining thereto or contained therein, shall be submitted to the
bureau upon request.
7507.3. A repossession agency shall be required to keep and
maintain adequate records of all transactions, including, but not
limited to, assignment forms; vehicle report of repossession required
by Section 28 of the Vehicle Code; vehicle condition reports,
including odometer readings, if available; personal effects
inventory; notice of seizure; and records of all transactions
pertaining to the sale of collateral that has been repossessed,
including, but not limited to, bids solicited and received, cash
received, deposits made to the trust account, remittances to the
seller, and allocation of any moneys not so remitted to appropriate
ledger accounts. Records, including bank statements of the trust
account, shall be retained for a period of not less than four years
and shall be available for examination by the bureau upon demand. In
addition, collateral and personal effects storage areas shall be made
accessible for inspection by the bureau upon demand. An assignment
form may be an original, a photocopy, a facsimile copy, or a copy
stored in an electronic format.
7507.4. A licensed repossession agency or its registrants may make
demand for payment in lieu of repossession, if the demand is made
pursuant to an assignment for repossession.
In making demand upon a debtor for a money payment in lieu of
repossession, the repossessor shall present the demand in compliance
with the Rosenthal Fair Debt Collection Act (Title 1.6C (commencing
with Section 1788) of Part 4 of Division 3 of the Civil Code),
setting forth in the demand only the amount that was specified by the
creditor in the repossession referral and the fees that are properly
chargeable. Itemized receipts shall be furnished the debtor at the
time payment is received. Payments received shall forthwith be
transmitted to the creditor, disclosing the full amount of money
received from the debtor in addition to the contract payments.
7507.5. No charge shall be made for services incurred in connection
with the recovery, transportation, and storage of collateral except
under terms agreed to by the legal owner at the time of the
repossession authorization or specifically agreed upon at a
subsequent time. Repair work may not be charged to the legal owner
unless expressly authorized by him or her.
7507.6. (a) Within seven days after a violent act has occurred
involving a licensee, or any officer, partner, qualified certificate
holder, registrant or employee of a licensee, while acting within the
course and scope of his or her employment or contract, that results
in a police report or bodily harm or bodily injury, the licensee or
the licensee's qualified certificate holder or registrant, shall mail
or deliver to the chief a notice concerning the incident upon a form
provided by the bureau.
(b) Within seven days after the occurrence of a violent act or a
threatened violent act involving a licensee, or any officer, partner,
qualified certificate holder, registrant, or employee of a licensee
while acting within the course and scope of his or her employment or
contract, that results in a police report or bodily harm or bodily
injury, the licensee or the licensee's qualified certificate holder
or registrant shall send by certified mail, return receipt requested,
a notice containing information about the incident to the person or
individual who made the assignment. If the assignor is not the legal
owner, the assignor shall notify the legal owner of the contents of
the notice.
(c) A licensee, qualified certificate holder, or registrant may
send the notice set forth in subdivision (b) for a violent act or
threatened violent act even if a police report is not made or no
bodily harm or bodily injury occurs. Any notice of a threatened
violent act provided pursuant to subdivision (b) may only be used to
notify a subsequent assignee and not for any collateral purpose.
Nothing in this subdivision or subdivision (b) shall be construed to
provide immunity against any claim for defamation.
7507.7. Within seven days after receiving a final civil court
judgment filed against the licensee or any officer, partner,
qualified certificate holder, or registrant of a licensee, for an
amount of more than the then prevailing maximum claim that may be
brought in a small claims court pertaining to an act done within the
course and scope of his or her employment or contract, the licensee,
or his or her qualified certificate holder, or his or her registrant,
shall mail or deliver to the chief a copy of the judgment.
7507.8. Every advertisement by a licensee, soliciting or
advertising business, shall contain the licensee's name, address, and
license number as they appear in the records of the bureau.
7507.9. Personal effects shall be removed from the collateral,
including any personal effect that is mounted but detachable from the
collateral by a release mechanism. A complete and accurate inventory
of the personal effects shall be made, and the personal effects
shall be labeled and stored by the licensee for a minimum of 60 days
in a secure manner, except those personal effects removed by or in
the presence of the debtor or the party in possession of the
collateral at the time of the repossession. If the licensee or the
licensee's agent cannot determine whether the property attached to
the collateral is a personal effect or a part of the collateral, then
that fact shall be noted on the inventory and the licensee or agent
shall not be obligated to remove the item from the collateral, unless
the item can be removed without the use of tools, in which case it
shall be removed and inventoried. The licensee or the licensee's
agent shall notify the debtor that if the debtor takes the position
that an item is a personal effect, then the debtor shall contact the
legal owner to resolve the issue.
(a) The date and time the inventory is made shall be indicated.
The permanent records of the licensee shall indicate the name of the
employee or registrant who performed the inventory.
(b) The following items of personal effects are items determined
to present a danger or health hazard when recovered by the licensee
and shall be disposed of in the following manner:
(1) Deadly weapons and dangerous drugs shall be turned over to any
law enforcement agency for retention. These items shall be entered
on the inventory and a notation shall be made as to the date and the
time and the place the deadly weapon or dangerous drug was turned
over to the law enforcement agency, and a receipt from the law
enforcement agency shall be maintained in the records of the
repossession agency.
(2) Combustibles shall be inventoried and noted as "disposed of,
dangerous combustible," and the item shall be disposed of in a
reasonable and safe manner.
(3) Food and other health hazard items shall be inventoried and
noted as "disposed of, health hazard," and disposed of in a
reasonable and safe manner.
(c) Personal effects may be disposed of after being held for at
least 60 days. The inventory, and adequate information as to how,
when, and to whom the personal effects were disposed of, shall be
filed in the permanent records of the licensee.
(d) The inventory shall include the name, address, business hours,
and telephone number of the repossession agency to contact for
recovering the personal effects and an itemization of all personal
effects removal and storage charges that will be made by the
repossession agency. The inventory shall also include the following
statement: "Please be advised that the property listed on this
inventory will be disposed of by the repossession agency after being
held for 60 days from the date of this notice IF UNCLAIMED."
(e) The inventory shall be provided to a debtor not later than 48
hours after the recovery of the collateral, except that if:
(1) The 48-hour period encompasses a Saturday, Sunday, or postal
holiday, the inventory shall be provided no later than 72 hours after
the recovery of the collateral.
(2) The 48-hour period encompasses a Saturday or Sunday and a
postal holiday, the inventory shall be provided no later than 96
hours after the recovery of the collateral.
(3) Inventory resulting from repossession of a yacht, motor home,
or travel trailer is such that it shall take at least four hours to
inventory, then the inventory shall be provided no later than 96
hours after the recovery of the collateral. When the 96-hour period
encompasses a Saturday, Sunday, or postal holiday, the inventory
shall be provided no later than 120 hours after the recovery of the
collateral.
(f) Environmental, Olympic, special interest, or other license
plates issued pursuant to Article 8 (commencing with Section 5000),
Article 8.4 (commencing with Section 5060) or Article 8.5 (commencing
with Section 5100) of Chapter 1 of Division 3 of the Vehicle Code
that remain the personal effects of the debtor shall be removed from
the collateral and inventoried pursuant to this section. If the
plates are not claimed by the debtor within 60 days, they shall
either (1) be effectively destroyed and the licensee shall, within 30
days thereafter, notify the Department of Motor Vehicles of their
effective destruction on a form promulgated by the chief that has
been approved as to form by the Director of the Department of Motor
Vehicles; or (2) be retained by the licensee indefinitely to be
returned to the debtor upon request, in which case the licensee shall
not charge more than 60 days' storage on the plates.
(g) The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
(h) With the consent of the licensee, the debtor may waive the
preparation and presentation of an inventory if the debtor redeems
the personal effects or other personal property not covered by a
security interest within the time period for the notices required by
this section and signs a statement that he or she has received all
the property.
(i) If personal effects or other personal property not covered by
a security agreement are to be released to someone other than the
debtor, the repossession agency may request written authorization to
do so from the debtor.
(j) The inventory shall be a confidential document. A licensee
shall only disclose the contents of the inventory under the following
circumstances:
(1) In response to the order of a court having jurisdiction to
issue the order.
(2) In compliance with a lawful subpoena issued by a court of
competent jurisdiction.
(3) When the debtor has consented in writing to the release and
the written consent is signed and dated by the debtor subsequent to
the repossession and states the entity or entities to whom the
contents of the inventory may be disclosed.
(4) To the debtor.
7507.10. A licensee shall serve a debtor with a notice of seizure
as soon as possible after the recovery of collateral and not later
than 48 hours, except that if the 48-hour period encompasses a
Saturday, Sunday, or postal holiday, the notice of seizure shall be
provided not later than 72 hours or, if the 48-hour period
encompasses a Saturday or Sunday and a postal holiday, the notice of
seizure shall be provided not later than 96 hours, after the
repossession of collateral. The notice shall include all of the
following:
(a) The name, address, and telephone number of the legal owner to
be contacted regarding the repossession.
(b) The name, address, and telephone number of the repossession
agency to be contacted regarding the repossession.
(c) A statement printed on the notice containing the following:
"Repossessors are regulated by the Bureau of Security and
Investigative Services, Department of Consumer Affairs, Sacramento,
CA. Repossessors are required to provide you, not later than 48 hours
after the recovery of collateral, with an inventory of personal
effects or other personal property recovered during repossession
unless the 48-hour period encompasses a Saturday, Sunday, or a postal
holiday, then the inventory shall be provided no later than 96 hours
after the recovery of collateral."
(d) A disclosure that "Damage to a vehicle during or subsequent to
a repossession and only while the vehicle is in possession of the
repossession agency and which is caused by the repossession agency is
the liability of the repossession agency. A mechanical, electrical,
or tire failure, or the loss of, or any damage to, or as a result of,
or caused by, any aftermarket parts and accessories not in
compliance with Section 24008 of the Vehicle Code shall not be the
responsibility of the repossession agency unless the failure, damage,
or loss is due to the negligence of the repossession agency."
(e) If applicable, a disclosure that "Environmental, Olympic,
special interest, or other license plates issued pursuant to Article
8 (commencing with Section 5000), Article 8.4 (commencing with
Section 5060) or Article 8.5 (commencing with Section 5100) of
Chapter 1 of Division 3 of the Vehicle Code that remain the personal
effects of the debtor will be removed from the collateral and
inventoried, and that if the plates are not claimed by the debtor
within 60 days, they will be destroyed."
(f) A disclosure of the charges payable by the debtor to the
repossession agency for the storage of the collateral and personal
effects from the date of repossession until release of the property
from storage.
The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
7507.11. Any written report to a client shall be submitted by the
licensee, the qualified certificate holder, or a person authorized by
one or either of them, and the person submitting the report shall
exercise diligence in ascertaining whether or not the facts and
information in the report are true and correct.
7507.115. A licensee shall not appraise the value of any
collateral.
7507.12. With regard to collateral subject to registration under
the Vehicle Code, a repossession is complete when the repossessor
gains entry to the collateral or when the collateral becomes
connected to a tow truck or the repossessor's tow vehicle, as those
terms are defined in Section 615 of the Vehicle Code. No person other
than the legal owner may direct a repossessor to release a vehicle
without legal authority to do so.
7507.13. (a) A licensed repossession agency is not liable for the
act or omission of a legal owner, debtor, lienholder, lessor or
lessee, or an agent of any of them, in making an assignment to it or
for accepting an assignment from any legal owner, debtor, lienholder,
lessor or lessee, or an agent of any of them, and is entitled to
indemnity from the legal owner, debtor, lienholder, lessor or lessee
for any loss, damage, cost, or expense, including court costs and
attorney's fees, that it may reasonably incur as a result thereof.
Nothing in this subdivision limits the liability of any person for
his or her tortious conduct.
(b) The legal owner, debtor, lienholder, lessor or lessee, or the
agent of any of them, is not liable for any act or omission by a
licensed repossession agency, or its agent, in carrying out an
assignment and is entitled to indemnity from the repossession agency
for any loss, damage, cost, or expense, including court costs and
attorney's fees, that the legal owner, debtor, lienholder, lessor or
lessee, or the agent of any of them, may reasonably incur as a result
thereof. Nothing in this subdivision limits the liability of any
person for his or her tortious conduct.
(c) The legal owner, debtor, lienholder, lessor or lessee, or the
agent of any of them, is not guilty of a violation of Section 7502.1
or 7502.2 if, at the time of the assignment, the party making the
assignment has in its possession a copy of the repossessor's current,
unexpired repossession agency license, and a copy of the current,
unexpired repossession agency's qualified manager's certificate, and
does not have actual knowledge of any order of suspension or
revocation of the license or certificate.
(d) Neither a licensed repossession agency nor a legal owner,
debtor, lienholder, lessor or lessee, or an agent of any of them may,
by any means, direct or indirect, express or implied, instruct or
attempt to coerce the other to violate any law, regulation, or rule
regarding the recovery of any collateral, including, but not limited
to, the provisions of this chapter or Section 9609 of the Commercial
Code.
BUSINESS AND PROFESSIONS CODE
SECTION 7507-7507.13
7507. A licensee shall notify the bureau within 30 days of any
change of its corporate officers or of the addition of any partners.
Applications, on forms prescribed by the director, shall be submitted
by all new officers and partners. The director may suspend or revoke
a license issued under this chapter if the director determines that
a new officer or partner has committed any act that constitutes
grounds for the denial of a license pursuant to Section 7503.5.
7507.1. A licensee or a qualified certificate holder shall, within
30 days after such change, notify the bureau of any change of his or
her address. The principal place of business may be at a residence or
at a business address, but it shall be the place at which the
licensee maintains a permanent office.
7507.2. (a) A licensee is responsible for those actions that are
performed in violation of this chapter by his or her registrants,
including his or her manager, when acting within the course and scope
of his or her employment or contract.
(b) Each licensee shall maintain a file or record of the name,
address, commencing date of employment or retention, and position of
each registrant, and the date of termination of the employment or
contract when a registrant is terminated. The file and records,
together with usual compensation records, shall be available for
inspection by the bureau, and copies thereof, and information
pertaining thereto or contained therein, shall be submitted to the
bureau upon request.
7507.3. A repossession agency shall be required to keep and
maintain adequate records of all transactions, including, but not
limited to, assignment forms; vehicle report of repossession required
by Section 28 of the Vehicle Code; vehicle condition reports,
including odometer readings, if available; personal effects
inventory; notice of seizure; and records of all transactions
pertaining to the sale of collateral that has been repossessed,
including, but not limited to, bids solicited and received, cash
received, deposits made to the trust account, remittances to the
seller, and allocation of any moneys not so remitted to appropriate
ledger accounts. Records, including bank statements of the trust
account, shall be retained for a period of not less than four years
and shall be available for examination by the bureau upon demand. In
addition, collateral and personal effects storage areas shall be made
accessible for inspection by the bureau upon demand. An assignment
form may be an original, a photocopy, a facsimile copy, or a copy
stored in an electronic format.
7507.4. A licensed repossession agency or its registrants may make
demand for payment in lieu of repossession, if the demand is made
pursuant to an assignment for repossession.
In making demand upon a debtor for a money payment in lieu of
repossession, the repossessor shall present the demand in compliance
with the Rosenthal Fair Debt Collection Act (Title 1.6C (commencing
with Section 1788) of Part 4 of Division 3 of the Civil Code),
setting forth in the demand only the amount that was specified by the
creditor in the repossession referral and the fees that are properly
chargeable. Itemized receipts shall be furnished the debtor at the
time payment is received. Payments received shall forthwith be
transmitted to the creditor, disclosing the full amount of money
received from the debtor in addition to the contract payments.
7507.5. No charge shall be made for services incurred in connection
with the recovery, transportation, and storage of collateral except
under terms agreed to by the legal owner at the time of the
repossession authorization or specifically agreed upon at a
subsequent time. Repair work may not be charged to the legal owner
unless expressly authorized by him or her.
7507.6. (a) Within seven days after a violent act has occurred
involving a licensee, or any officer, partner, qualified certificate
holder, registrant or employee of a licensee, while acting within the
course and scope of his or her employment or contract, that results
in a police report or bodily harm or bodily injury, the licensee or
the licensee's qualified certificate holder or registrant, shall mail
or deliver to the chief a notice concerning the incident upon a form
provided by the bureau.
(b) Within seven days after the occurrence of a violent act or a
threatened violent act involving a licensee, or any officer, partner,
qualified certificate holder, registrant, or employee of a licensee
while acting within the course and scope of his or her employment or
contract, that results in a police report or bodily harm or bodily
injury, the licensee or the licensee's qualified certificate holder
or registrant shall send by certified mail, return receipt requested,
a notice containing information about the incident to the person or
individual who made the assignment. If the assignor is not the legal
owner, the assignor shall notify the legal owner of the contents of
the notice.
(c) A licensee, qualified certificate holder, or registrant may
send the notice set forth in subdivision (b) for a violent act or
threatened violent act even if a police report is not made or no
bodily harm or bodily injury occurs. Any notice of a threatened
violent act provided pursuant to subdivision (b) may only be used to
notify a subsequent assignee and not for any collateral purpose.
Nothing in this subdivision or subdivision (b) shall be construed to
provide immunity against any claim for defamation.
7507.7. Within seven days after receiving a final civil court
judgment filed against the licensee or any officer, partner,
qualified certificate holder, or registrant of a licensee, for an
amount of more than the then prevailing maximum claim that may be
brought in a small claims court pertaining to an act done within the
course and scope of his or her employment or contract, the licensee,
or his or her qualified certificate holder, or his or her registrant,
shall mail or deliver to the chief a copy of the judgment.
7507.8. Every advertisement by a licensee, soliciting or
advertising business, shall contain the licensee's name, address, and
license number as they appear in the records of the bureau.
7507.9. Personal effects shall be removed from the collateral,
including any personal effect that is mounted but detachable from the
collateral by a release mechanism. A complete and accurate inventory
of the personal effects shall be made, and the personal effects
shall be labeled and stored by the licensee for a minimum of 60 days
in a secure manner, except those personal effects removed by or in
the presence of the debtor or the party in possession of the
collateral at the time of the repossession. If the licensee or the
licensee's agent cannot determine whether the property attached to
the collateral is a personal effect or a part of the collateral, then
that fact shall be noted on the inventory and the licensee or agent
shall not be obligated to remove the item from the collateral, unless
the item can be removed without the use of tools, in which case it
shall be removed and inventoried. The licensee or the licensee's
agent shall notify the debtor that if the debtor takes the position
that an item is a personal effect, then the debtor shall contact the
legal owner to resolve the issue.
(a) The date and time the inventory is made shall be indicated.
The permanent records of the licensee shall indicate the name of the
employee or registrant who performed the inventory.
(b) The following items of personal effects are items determined
to present a danger or health hazard when recovered by the licensee
and shall be disposed of in the following manner:
(1) Deadly weapons and dangerous drugs shall be turned over to any
law enforcement agency for retention. These items shall be entered
on the inventory and a notation shall be made as to the date and the
time and the place the deadly weapon or dangerous drug was turned
over to the law enforcement agency, and a receipt from the law
enforcement agency shall be maintained in the records of the
repossession agency.
(2) Combustibles shall be inventoried and noted as "disposed of,
dangerous combustible," and the item shall be disposed of in a
reasonable and safe manner.
(3) Food and other health hazard items shall be inventoried and
noted as "disposed of, health hazard," and disposed of in a
reasonable and safe manner.
(c) Personal effects may be disposed of after being held for at
least 60 days. The inventory, and adequate information as to how,
when, and to whom the personal effects were disposed of, shall be
filed in the permanent records of the licensee.
(d) The inventory shall include the name, address, business hours,
and telephone number of the repossession agency to contact for
recovering the personal effects and an itemization of all personal
effects removal and storage charges that will be made by the
repossession agency. The inventory shall also include the following
statement: "Please be advised that the property listed on this
inventory will be disposed of by the repossession agency after being
held for 60 days from the date of this notice IF UNCLAIMED."
(e) The inventory shall be provided to a debtor not later than 48
hours after the recovery of the collateral, except that if:
(1) The 48-hour period encompasses a Saturday, Sunday, or postal
holiday, the inventory shall be provided no later than 72 hours after
the recovery of the collateral.
(2) The 48-hour period encompasses a Saturday or Sunday and a
postal holiday, the inventory shall be provided no later than 96
hours after the recovery of the collateral.
(3) Inventory resulting from repossession of a yacht, motor home,
or travel trailer is such that it shall take at least four hours to
inventory, then the inventory shall be provided no later than 96
hours after the recovery of the collateral. When the 96-hour period
encompasses a Saturday, Sunday, or postal holiday, the inventory
shall be provided no later than 120 hours after the recovery of the
collateral.
(f) Environmental, Olympic, special interest, or other license
plates issued pursuant to Article 8 (commencing with Section 5000),
Article 8.4 (commencing with Section 5060) or Article 8.5 (commencing
with Section 5100) of Chapter 1 of Division 3 of the Vehicle Code
that remain the personal effects of the debtor shall be removed from
the collateral and inventoried pursuant to this section. If the
plates are not claimed by the debtor within 60 days, they shall
either (1) be effectively destroyed and the licensee shall, within 30
days thereafter, notify the Department of Motor Vehicles of their
effective destruction on a form promulgated by the chief that has
been approved as to form by the Director of the Department of Motor
Vehicles; or (2) be retained by the licensee indefinitely to be
returned to the debtor upon request, in which case the licensee shall
not charge more than 60 days' storage on the plates.
(g) The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
(h) With the consent of the licensee, the debtor may waive the
preparation and presentation of an inventory if the debtor redeems
the personal effects or other personal property not covered by a
security interest within the time period for the notices required by
this section and signs a statement that he or she has received all
the property.
(i) If personal effects or other personal property not covered by
a security agreement are to be released to someone other than the
debtor, the repossession agency may request written authorization to
do so from the debtor.
(j) The inventory shall be a confidential document. A licensee
shall only disclose the contents of the inventory under the following
circumstances:
(1) In response to the order of a court having jurisdiction to
issue the order.
(2) In compliance with a lawful subpoena issued by a court of
competent jurisdiction.
(3) When the debtor has consented in writing to the release and
the written consent is signed and dated by the debtor subsequent to
the repossession and states the entity or entities to whom the
contents of the inventory may be disclosed.
(4) To the debtor.
7507.10. A licensee shall serve a debtor with a notice of seizure
as soon as possible after the recovery of collateral and not later
than 48 hours, except that if the 48-hour period encompasses a
Saturday, Sunday, or postal holiday, the notice of seizure shall be
provided not later than 72 hours or, if the 48-hour period
encompasses a Saturday or Sunday and a postal holiday, the notice of
seizure shall be provided not later than 96 hours, after the
repossession of collateral. The notice shall include all of the
following:
(a) The name, address, and telephone number of the legal owner to
be contacted regarding the repossession.
(b) The name, address, and telephone number of the repossession
agency to be contacted regarding the repossession.
(c) A statement printed on the notice containing the following:
"Repossessors are regulated by the Bureau of Security and
Investigative Services, Department of Consumer Affairs, Sacramento,
CA. Repossessors are required to provide you, not later than 48 hours
after the recovery of collateral, with an inventory of personal
effects or other personal property recovered during repossession
unless the 48-hour period encompasses a Saturday, Sunday, or a postal
holiday, then the inventory shall be provided no later than 96 hours
after the recovery of collateral."
(d) A disclosure that "Damage to a vehicle during or subsequent to
a repossession and only while the vehicle is in possession of the
repossession agency and which is caused by the repossession agency is
the liability of the repossession agency. A mechanical, electrical,
or tire failure, or the loss of, or any damage to, or as a result of,
or caused by, any aftermarket parts and accessories not in
compliance with Section 24008 of the Vehicle Code shall not be the
responsibility of the repossession agency unless the failure, damage,
or loss is due to the negligence of the repossession agency."
(e) If applicable, a disclosure that "Environmental, Olympic,
special interest, or other license plates issued pursuant to Article
8 (commencing with Section 5000), Article 8.4 (commencing with
Section 5060) or Article 8.5 (commencing with Section 5100) of
Chapter 1 of Division 3 of the Vehicle Code that remain the personal
effects of the debtor will be removed from the collateral and
inventoried, and that if the plates are not claimed by the debtor
within 60 days, they will be destroyed."
(f) A disclosure of the charges payable by the debtor to the
repossession agency for the storage of the collateral and personal
effects from the date of repossession until release of the property
from storage.
The notice may be given by regular mail addressed to the last
known address of the debtor or by personal service at the option of
the repossession agency.
7507.11. Any written report to a client shall be submitted by the
licensee, the qualified certificate holder, or a person authorized by
one or either of them, and the person submitting the report shall
exercise diligence in ascertaining whether or not the facts and
information in the report are true and correct.
7507.115. A licensee shall not appraise the value of any
collateral.
7507.12. With regard to collateral subject to registration under
the Vehicle Code, a repossession is complete when the repossessor
gains entry to the collateral or when the collateral becomes
connected to a tow truck or the repossessor's tow vehicle, as those
terms are defined in Section 615 of the Vehicle Code. No person other
than the legal owner may direct a repossessor to release a vehicle
without legal authority to do so.
7507.13. (a) A licensed repossession agency is not liable for the
act or omission of a legal owner, debtor, lienholder, lessor or
lessee, or an agent of any of them, in making an assignment to it or
for accepting an assignment from any legal owner, debtor, lienholder,
lessor or lessee, or an agent of any of them, and is entitled to
indemnity from the legal owner, debtor, lienholder, lessor or lessee
for any loss, damage, cost, or expense, including court costs and
attorney's fees, that it may reasonably incur as a result thereof.
Nothing in this subdivision limits the liability of any person for
his or her tortious conduct.
(b) The legal owner, debtor, lienholder, lessor or lessee, or the
agent of any of them, is not liable for any act or omission by a
licensed repossession agency, or its agent, in carrying out an
assignment and is entitled to indemnity from the repossession agency
for any loss, damage, cost, or expense, including court costs and
attorney's fees, that the legal owner, debtor, lienholder, lessor or
lessee, or the agent of any of them, may reasonably incur as a result
thereof. Nothing in this subdivision limits the liability of any
person for his or her tortious conduct.
(c) The legal owner, debtor, lienholder, lessor or lessee, or the
agent of any of them, is not guilty of a violation of Section 7502.1
or 7502.2 if, at the time of the assignment, the party making the
assignment has in its possession a copy of the repossessor's current,
unexpired repossession agency license, and a copy of the current,
unexpired repossession agency's qualified manager's certificate, and
does not have actual knowledge of any order of suspension or
revocation of the license or certificate.
(d) Neither a licensed repossession agency nor a legal owner,
debtor, lienholder, lessor or lessee, or an agent of any of them may,
by any means, direct or indirect, express or implied, instruct or
attempt to coerce the other to violate any law, regulation, or rule
regarding the recovery of any collateral, including, but not limited
to, the provisions of this chapter or Section 9609 of the Commercial
Code.
