Legal Question in Credit and Debt Law in California
debt collection
Would repo, lease, financing, and debt collection laws be different on a small sole proprietor company than they are for an individual? I read up on consumer laws, but I'm not sure if my husband's business falls under them, as, for example, the Equipment Finance Agreement he signed for (which they call a lease but he's the registered owner and they're lienholder) doesn't seem to follow any consumer protection laws I find. It's on a limo, not a standard car--don't know if that makes a difference.
1 Answer from Attorneys
Re: debt collection
Generally, consumer protection laws only apply to purchases made primarily for personal, family, or household purposes. So, unless the Limo is used as the family car, it probably would not be subject to any consumer protection laws.
However, it would be subject to the implied warranty of merchantability laws under the Commercial Code, and the unfair business practice laws under the Business and Professions Code.
The key difference between consumer protection laws and other laws, is the ability to obtain an award of attorney fees. If your contract with the leasing company has an attorney fees clause in it, you may be entitled to an award of attorney fees anyway.
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