CHAPTER 11. Repossessors [7500. - 7511.5.]
Chapter 11 added by Stats. 1981, Ch. 1138, Sec. 11.
§§ 7500–7511.5 · 100 sections
ARTICLE 1. General Provisions §§ 7500–7500.3 · 4 sections
- § 7500 This chapter of the Business and Professions Code constitutes the chapter on repossessors. It may be cited as the “Collateral Recovery Act.”
- § 7500.1 As used in this chapter: (a) “Advertisement” means any written or printed communication, including a directory listing, except a free telephone directory…
- § 7500.2 (a) A repossession agency means and includes any person who, for any consideration whatsoever, engages in business or accepts employment to locate or recover…
- § 7500.3 (a) A repossession agency shall not include any of the following: (1) Any bank subject to the jurisdiction of the Commissioner of Financial Protection and…
ARTICLE 2. Administration §§ 7501–7501.9 · 11 sections
- § 7501 There is in the Department of Consumer Affairs a Bureau of Security and Investigative Services. The bureau is under the supervision and control of the…
- § 7501.05 Protection of the public shall be the highest priority for the Bureau of Security and Investigative Services in exercising its licensing, regulatory, and…
- § 7501.1 The Governor shall appoint a chief of the bureau at a salary to be fixed in accordance with Section 12080.3 of the Government Code. The chief shall serve under…
- § 7501.2 Every power and duty granted to or imposed upon the director under this chapter may be delegated to the chief, except that the director may not delegate…
- § 7501.3 The director, in accordance with the State Civil Service Act, and Section 159.5, may appoint and fix the compensation of such clerical, inspection,…
- § 7501.4 The chief shall gather evidence of violations of this chapter and of any rule or regulation established pursuant to this chapter by persons engaged in the…
- § 7501.5 It shall be the duty of the chief to initiate and conduct investigations into the business and affairs of licensees on the chief’s own motion.
- § 7501.6 The director may establish and enforce such rules and regulations as may be reasonable and necessary for the examination and licensing of applicants, for the…
- § 7501.7 If, upon investigation, the director determines that a licensee, a qualified certificate holder, or a registrant is in violation of Section 7508.1, 7508.2,…
- § 7501.8 (a) When considering the denial of a license, registration, or certificate under Section 7503.5, for which application has been made under this chapter, the…
- § 7501.9 It is the intent of the Legislature, consistent with Section 128.5 of the Business and Professions Code, that the bureau shall not maintain a reserve balance…
ARTICLE 3. Application of Chapter §§ 7502–7502.6 · 7 sections
- § 7502 No person shall engage within this state in the activities of a repossession agency as defined in Section 7500.2 unless the person holds a valid repossession…
- § 7502.1 (a) Any person who violates any provision of this chapter, or who conspires with another person to violate any provision of this chapter, or who knowingly…
- § 7502.2 (a) A financial institution or a buy-here-pay-here dealer, as defined by Section 241 of the Vehicle Code, that knowingly engages a nonexempt unlicensed person…
- § 7502.3 Any person who knowingly falsifies the fingerprints or photographs required by any provision of this chapter is guilty of a felony.
- § 7502.4 In addition to the remedy provided for in Section 125.5, the superior court for the county in which any licensee licensed under this chapter has engaged or is…
- § 7502.5 The provisions of this chapter do not prevent the local authorities in any city, county, or city and county, by ordinance and within the exercise of the police…
- § 7502.6 (a) The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a repossession agency without first having…
ARTICLE 4. Licenses §§ 7503–7503.14 · 16 sections
- § 7503 An application for a repossession agency license shall be made in writing to, and filed with, the bureau in the form that may be required by the director and…
- § 7503.05 (a) The bureau shall require each applicant as a repossession agency licensee, qualified certificate holder, or registrant, as defined in Sections 7500.1 and…
- § 7503.1 (a) Each individual applicant for examination and each manager, partner of a partnership, and officer of a corporation shall submit with the application, one…
- § 7503.2 If the applicant for license is an individual, the application shall state the full residence address of the applicant and that the applicant is to be…
- § 7503.3 If the applicants for license are copartners, the application shall state the true names and addresses of all partners and the name of the partner to be…
- § 7503.4 (a) If the applicant for a license is a corporation, the application shall state the true names and complete residence addresses of all officers. The…
- § 7503.5 If the director determines that the applicant, if an individual, or if the applicant is a person other than an individual, that its manager and any of its…
- § 7503.6 No license may be issued to any applicant pending final disposition of any disciplinary action by the director previously filed against the person or applicant…
- § 7503.7 The form and content of the license shall be determined by the director in accordance with Section 164.
- § 7503.8 Each repossession agency license or duplicate license, together with current renewal license, if any, shall at all times be conspicuously displayed at the…
- § 7503.9 (a) Except as provided in this section, a repossession agency license issued under this chapter is not assignable. (b) A repossession agency may apply to the…
- § 7503.10 (a) An original repossession agency license shall expire one year following the date of issuance, unless renewed as provided in this chapter. (b) A renewal…
- § 7503.11 An expired license may be reinstated within one year of the date of expiration upon compliance with the provisions of this chapter, application by the…
- § 7503.12 A suspended repossession agency license is subject to expiration and shall be renewed as provided in this article, but renewal of the license does not entitle…
- § 7503.13 A revoked repossession agency license is subject to expiration as provided in this article, but it may not be renewed. If it is reinstated after its…
- § 7503.14 (a) A repossession agency license which is not renewed within 10 years after its expiration shall not be renewed, restored, reinstated, or reissued thereafter.…
ARTICLE 5. Examination §§ 7504–7504.8 · 9 sections
- § 7504 (a) Except as otherwise provided in this chapter, an applicant for a qualification certificate shall comply with all of the following: (1) Be at least 18 years…
- § 7504.1 The director may refuse to issue a qualification certificate, or may suspend or revoke a previously issued qualification certificate, if the individual has…
- § 7504.2 Examinations and reexaminations shall be given at least once every other month at such places and on such specific dates as the chief may from time to time…
- § 7504.3 In order to be eligible for an initial examination, an applicant shall have completed and filed his or her application together with the application fee…
- § 7504.4 If an applicant fails to pass an initial examination, the applicant shall not be eligible for a subsequent examination except upon payment of the reexamination…
- § 7504.5 All applicants shall be examined concerning their competency, experience, and qualifications by the chief and the chief may take testimony of anyone in regard…
- § 7504.6 If an applicant fails to complete his or her application within one year after it has been filed, or fails to take the examination within a one-year period…
- § 7504.7 (a) Except as provided in this section, every qualification certificate issued or renewed under this chapter is subject to the same renewal provisions that…
- § 7504.8 A person may work as a qualified certificate holder pending receipt of the qualification certificate if he or she has been approved by the bureau and carries…
ARTICLE 6. Offices §§ 7505–7505.5 · 5 sections
- § 7505 A licensee desiring to operate a repossession business at a location other than the address shown on his or her license shall apply and qualify for a license…
- § 7505.1 Every office licensed as a repossession agency shall be under the active charge of a qualified certificate holder. Nothing in this chapter prohibits a licensee…
- § 7505.3 (a) Whenever a qualified certificate holder actively in charge of an office ceases to be in charge, the licensee shall file with the bureau notice, in writing,…
- § 7505.4 Except as herein otherwise provided, no person shall be in charge of any licensed office if the person has ever had a license revoked or suspended or has ever…
- § 7505.5 The person deemed to be actively in charge of an office shall be the holder of a qualification certificate and the certificate, together with the current…
ARTICLE 7. Registration §§ 7506.3–7506.14 · 12 sections
- § 7506.3 Except as otherwise provided in this article, every person entering the employ of, or contracting with, a licensee or multiple licensee after the effective…
- § 7506.4 The application for an initial registration or a reregistration under this article shall be on a form prescribed by the director and shall be accompanied by…
- § 7506.5 All information obtained on the application shall be confidential pursuant to the Information Practices Act (Chapter 1 (commencing with Section 1798) of Title…
- § 7506.6 Qualified certificate holders who comply with other provisions of this chapter are not required to register under this article.
- § 7506.7 Employees of a licensee who are engaged exclusively in stenographic, typing, filing, clerical, in-office skip tracing, or other office activities are not…
- § 7506.8 (a) The director may refuse to register any applicant if the individual has failed to pay any or all fines assessed pursuant to Section 7501.7 and not resolved…
- § 7506.9 (a) Upon the issuance of the initial registration, reregistration, or renewal, the chief shall issue to the registrant a suitable pocket identification card.…
- § 7506.10 (a) Every initial registration shall expire one year following the date of issuance, unless renewed as provided in this section. A renewal registration shall…
- § 7506.11 (a) Each registration is valid until the registrant ceases performing services for the licensee indicated on the registration card or until the registration…
- § 7506.12 The proceedings under this article shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the…
- § 7506.13 (a) The licensee shall at all times be responsible for ascertaining that his or her registrants are currently registered or have made proper application for…
- § 7506.14 If the chief determines that continued services by an applicant for registration in his or her current capacity may present undue hazard to public safety, the…
ARTICLE 8. Conduct of Business §§ 7507–7507.13 · 16 sections
- § 7507 A licensee shall notify the bureau within 30 days of any change of its corporate officers or of the addition of any partners. Applications, on forms prescribed…
- § 7507.1 A licensee or a qualified certificate holder shall, within 30 days after such change, notify the bureau of any change of his or her address. The principal…
- § 7507.2 (a) A licensee is responsible for those actions that are performed in violation of this chapter by his or her registrants, including his or her manager, when…
- § 7507.3 A repossession agency shall be required to keep and maintain adequate records of all transactions, including, but not limited to, assignment or repossession…
- § 7507.4 A licensed repossession agency or its registrants shall not make demand for payment in lieu of repossession and shall not sell collateral recovered under this…
- § 7507.5 No charge shall be made for services incurred in connection with the recovery, transportation, and storage of collateral except under terms agreed to by the…
- § 7507.6 (a) Within seven days after a violent act has occurred involving a licensee, or any officer, partner, qualified certificate holder, registrant, or employee of…
- § 7507.7 Within seven days after receiving a final civil court judgment filed against the licensee or any officer, partner, qualified certificate holder, or registrant…
- § 7507.8 Every advertisement by a licensee, soliciting or advertising business, shall contain the licensee’s name, address, and license number as they appear in the…
- § 7507.9 Personal effects shall be removed from the collateral, including any personal effect that is mounted but detachable from the collateral by a release mechanism.…
- § 7507.10 (a) A licensee shall serve a debtor with a notice of seizure as soon as possible after the recovery of collateral and not later than 48 hours, except that if…
- § 7507.11 Any written report to a client shall be submitted by the licensee, the qualified certificate holder, or a person authorized by one or either of them, and the…
- § 7507.115 (a) A licensee shall not appraise or determine the value of any collateral, whether damaged or not. (b) (1) Notwithstanding subdivision (a), a licensee may…
- § 7507.12 (a) With regard to collateral subject to registration under the Vehicle Code, a repossession is complete if any of the following occurs: (1) The repossessor…
- § 7507.125 Nothing in this chapter prohibits the using or taking of personal effects that are connected, adjoined, or affixed to the collateral through an unbroken…
- § 7507.13 (a) A licensed repossession agency is not liable for the act or omission of a legal owner, debt collector, debtor, lienholder, lessor, lessee, or registered…
ARTICLE 9. Prohibited Acts and Citations §§ 7508–7509.3 · 13 sections
- § 7508 The director may assess administrative fines against any repossession agency licensee, qualified certificate holder, or registrant for any of the prohibited…
- § 7508.1 The director may assess administrative fines for the following prohibited acts: (a) Knowingly making any false report to his or her employer or client for whom…
- § 7508.2 The director may assess administrative fines for any of the following prohibited acts: (a) Recovering collateral or making any money demand in lieu thereof,…
- § 7508.3 A licensee, or any of his or her registrants or employees, or a qualified certificate holder, is prohibited from using any false or misleading representation…
- § 7508.4 The director may assess administrative fines for any of the following prohibited acts: (a) Conducting business from any location other than that location to…
- § 7508.5 The director may assess administrative fines against a repossession agency registrant for the following acts, in addition to fines imposed pursuant to any…
- § 7508.6 The director may assess administrative fines against any repossession agency licensee, qualified certificate holder, or registrant for failure to notify the…
- § 7508.7 (a) Except as otherwise provided by law, a repossession agency shall not disclose to the public, any person other than the individual to whom the information…
- § 7508.8 (a) Notwithstanding Section 7508.3, an oval, shield, round, square, or non-seven-point badge, cap insignia, or jacket patch may be worn by a licensee, officer,…
- § 7509 (a) (1) A licensee, certificate holder, or registrant under this chapter may request a review by the Collateral Recovery Disciplinary Review Committee, as…
- § 7509.1 (a) On or before July 1, 2017, the Governor shall appoint a Collateral Recovery Disciplinary Review Committee, and may remove any member of the committee for…
- § 7509.2 (a) The Collateral Recovery Disciplinary Review Committee shall perform the following functions: (1) Affirm, rescind, or modify all decisions concerning…
- § 7509.3 (a) The bureau shall provide the Collateral Recovery Disciplinary Review Committee all evidence used by the bureau in reaching its decision prior to any review…
ARTICLE 10. Disciplinary Proceedings §§ 7510–7510.4 · 5 sections
- § 7510 Except as otherwise required to comply with the provisions of this chapter, the proceedings under this article shall be conducted in accordance with Chapter 5…
- § 7510.1 In addition to any other remedies authorized by this chapter, the director may suspend or revoke a repossession agency license, a qualification certificate, or…
- § 7510.2 (a) Any licensee, or any officer, partner, registrant, employee, or manager of a licensee, who is found by the director to have committed any acts prohibited…
- § 7510.3 Notwithstanding any other law, the failure of any person licensed to do business as a corporation or limited liability company in this state to be registered…
- § 7510.4 The record of conviction, or a certified copy thereof, shall be conclusive evidence of such conviction. A plea or verdict of guilty or a conviction following a…
ARTICLE 11. Revenue § 7511 · 1 section
- § 7511 The bureau shall establish and assess fees and penalties for licensure and registration as displayed in this section. The fees prescribed by this chapter are…
ARTICLE 12. Review § 7511.5 · 1 section
- § 7511.5 Notwithstanding any other law, the powers and duties of the bureau, as set forth in this chapter, shall be subject to review by the appropriate policy…