June 14, 2020<\/p>\n\n\n\n

The Honorable Monique Lim\u00f3n<\/p>\n\n\n\n

State Capitol, Room <\/p>\n\n\n\n

Sacramento, CA  95814<\/p>\n\n\n\n

Re:  AB 2501 (Lim\u00f3n)<\/strong><\/p>\n\n\n\n

Position:  OPPOSE<\/strong><\/p>\n\n\n\n

The California Association of Licensed Repossessors (CALR) Opposes your bill, AB 2501 as amended June 10, 2020.  The bill is intended to provide homeowner, tenant, and consumer relief to Californians suffering from the impact of the COVID-19 Pandemic.  As such, CALR wants to help vulnerable consumers and work to find appropriate relief which provides reasonable consumer protections to vehicle loan borrowers who are impacted by job loss, job retractions, stay at home orders, and challenges presented by the medical impacts of COVID-19.  <\/p>\n\n\n\n

However, as amended, the bill would prohibit, as specified, any lender from self-help repossession of a mobile home or vehicle until January 1, 2023 \u2013 2 1\/2 years from now.  The bill would instead require lenders to use a judicial process, in which the courts and the police are involved to repossess vehicles.  Under current law, self-help is the term for lenders to repossess a vehicle in default under the terms of the lending contract, and does not require the intrusive costs, and judicial processes of using the courts and police to repossess a vehicle.  <\/p>\n\n\n\n

Judicial Process Repossession.  <\/strong><\/p>\n\n\n\n

By requiring a judicial process for repossessions, the bill would:<\/p>\n\n\n\n

\u2022 Require a lender to take consumers to court when they are behind on their car payments<\/p>\n\n\n\n

\u2022 If the consumer fails to appear in court a bench warrant may be issued<\/p>\n\n\n\n

\u2022 Consumers are responsible for all judicial process costs<\/p>\n\n\n\n

\u2022 Requires law enforcement to go to your home or work to repossess your car<\/p>\n\n\n\n

\u2022 There is no breach of the peace protection for the consumer<\/p>\n\n\n\n

\u2022 There is no oversight for law enforcement repossessions<\/p>\n\n\n\n

\u2022 Judicial process attorney and court costs run from $3,500 to $4,500<\/p>\n\n\n\n

\u2022 Judicial process to involve law enforcement costs $1,200 to $1,500<\/p>\n\n\n\n

\u2022 Judicial process repossession costs $5,000 to $6,000<\/p>\n\n\n\n

All of these costs are ultimately charged to the consumer.  <\/p>\n\n\n\n

After the judicial repossession process is completed:  <\/p>\n\n\n\n

\u2022 Judgments stay on the consumer\u2019s public court record for 10 years<\/p>\n\n\n\n

\u2022 The judgment will stay on the consumer\u2019s credit report for seven years<\/p>\n\n\n\n

\u2022 Liens may be issued against the consumer\u2019s assets including retirement, 401k, etc.<\/p>\n\n\n\n

\u2022 The consumer does not have the right to redeem or reinstate their loan.<\/p>\n\n\n\n

Self Help Repossession\u2014<\/strong><\/p>\n\n\n\n

The CURRENT REPOSSESSION PRACTICE:  <\/p>\n\n\n\n

\u2022 The consumer has up to 25 days to redeem or reinstate their loan<\/p>\n\n\n\n

\u2022 The consumer has up to 60 days to pick up their personal effects<\/p>\n\n\n\n

\u2022 Non-Judicial repossession costs approximately $350<\/p>\n\n\n\n

\u2022 Repossessors are regulated by the Department of Consumer Affairs<\/p>\n\n\n\n

The bottom line is this:  If lenders must use a judicial process for repossessions, those lenders will be unwilling to extend financing to lower income, economically disadvantaged California workers who need to purchase a vehicle to go to their jobs.  It will further make repossession in communities that are made up of the economically disadvantaged, minorities and people of color an action by the police.<\/strong><\/p>\n\n\n\n

For these reasons, CALR is strongly Opposed to AB 2501 as amended on June 10. <\/p>\n\n\n\n

If you have any questions, please don\u2019t hesitate to contact me.   <\/p>\n\n\n\n

Sincerely,<\/p>\n\n\n\n

Joe Collins<\/p>\n\n\n\n

CALR Legislative Liaison<\/p>\n\n\n\n

cc: Members, California State Assembly <\/p>\n","protected":false},"excerpt":{"rendered":"

The day before AB 2501 went to vote, the California Association of Licensed Repossessors (CALR)…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":10402,"menu_order":1,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-19907","page","type-page","status-publish","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/pages\/19907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/comments?post=19907"}],"version-history":[{"count":3,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/pages\/19907\/revisions"}],"predecessor-version":[{"id":21703,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/pages\/19907\/revisions\/21703"}],"up":[{"embeddable":true,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/pages\/10402"}],"wp:attachment":[{"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/media?parent=19907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}