Legal Question in Business Law in California

Re: vehicle loan became default because lender made adjustment without notice to

This is a really tough one, and maybe someone else will respond and give you a better idea. The only thing that occurs to me (because it would not be economical to go to Superior Court) as a possibility is to sue in small-claims court for up to $5,000 of lost equity and other direct damages caused by the repo. Then, after filing and serving, you can offer to settle out of court by an agreement trading dismissal for un-doing the error including retraction of the negative report to the credit agencies. A variant is to show up in court, prove your case to the judge, then suggest before the court to settle on that basis. Small-claims courts have some authority to order non-monetary relief, and that could include requiring the lender to return the vehicle (if they can) or carry out the specific terms of their agreement with you, if they were violated.

It still remains a tough position from which to get justice. Red tape, corporate indifference and the amount which lies between Superior Court economics and Small Claims jurisdictional max will combine to make things tough.

There is always the possibility of complaining to some regulatory agency. In my experience this is usually ineffective, but it might be worthwhile to determine who regulates this lender and how to make a complaint.