Legal Question in Banking Law in California

Re: car repo

I have seen this issue many times before. Typically under the sales contract a finance company has the contractual right to add insurance to protect their collateral if the consumer does not purchase insurance, provide a copy of the policy, or purchases inadequate coverage. In your situation it does not appear this occurred. If you have a valid policy in place with the appropriate limits and the finance company had knowledge they would not have the right to charge for additional insurance. The repossession would then be inappropriate. You have certain rights under California law, which would protect against this type of conduct.