Legal Question in Credit and Debt Law in California

Wrongful Auto Lease Repossession

Under the California laws, please explain the creditors responsibility for proving default and subsequently, repossessing leased vehicles. Also, please indicate whether or not the debtor can cure default on lease vehicles by paying back payments or is it legal for the creditor to accelerate and require the full contract amount paid in full. Finally, please explain whether or not there are any requirements for the creditor to communicate intent to reposession. What is considered appropriate means of notification? Can the creditor simply claim that they sent a letter without proving receipt by the debtor.

Thanks


Asked on 12/04/02, 9:33 pm

1 Answer from Attorneys
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Wrongful Auto Lease Repossession

Generally, creditors who hold a lien on a vehicle (whether a leased vehicle, or a purchased vehicle) can repossess the vehicle once the debtor has failed to make a single payment. All the creditor need do is claim that a default has occurred, and it is then up to the debtor to show that payment has been made. Further, the creditor need not notify the debtor that it intends to repossess the vehicle.

As always, you should review all of the documents you have concerning your lease to determine if there are any special requirements imposed by the contracts you signed. As a general rule, any contract you signed will govern the creditor's, as well as your, rights and responsibilities.

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Answered on 12/05/02, 1:36 pm


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