Legal Question in Credit and Debt Law in California

Yes, they can refuse voluntary surrender. If you stop making payments, they will likely repossess the vehicle, sell for minimal value and then sue you for breach of contract for the full value of the contract plus attorney fees, repossession fees and several other fees.

If you are having problems paying your bills, you may want to consult with a local bankruptcy attorney for options.

Mr. Jordan is exactly right. There is no law that requires a lender to accept voluntary surrender. Furthermore a voluntary surrender hits your credit score exactly the same as a repossession and if the repossessed vehicle sells for less than the balance owed, you still owe the rest. All a voluntary surrender does for you is save the potential hassle and embarrassment of a repo.