AB 791, as amended, Hagman. Collateral recovery: repossessors.
law, the Collateral Recovery Act, provides for the licensure and regulation of repossession agencies by the Bureau of Security and Investigative Services under the supervision and control of the Director of Consumer Affairs. Existing law requires an applicant for a qualification certificate or for an initial registration or a reregistration to submit an application to the bureau and include certain personal information in the application that is confidential and is prohibited from being disclosed to the public.
This bill would make a technical, nonsubstantive change to these provisions.end delete
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 7506.5 of the Business and Professions
2Code is amended to read:
All information obtained on the application shall be
4confidential pursuant to the Information Practices Act (Chapter 1
5(commencing with Section 1798) of Title 1.8 of Part 4 of Division
63 of the Civil Code)
begin delete and shall not be released to the public except . The application shall be verified and shall
7for the registrant’s full name, the licensee’s name and address, and
8the registration numberend delete
9include the following:
10(a) The full name, residence address, residence telephone
11number, date and place of birth, and driver’s license number of
12the applicant or registrant.
13(b) A statement listing any and all names
used by the applicant
14or registrant, other than the name by which he or she is currently
15known. If the applicant or registrant has never used a name other
16than his or her true name, this fact shall be set forth in the
18(c) The name and address of the licensee and the date the
19employment or contract commenced.
20(d) The title of the position occupied by the applicant or
21registrant and a description of his or her duties.
P3 1(e) Two recent photographs of the applicant or registrant, of a
2type prescribed by the chief, and two classifiable sets of his or her
3fingerprints, one set of which shall be forwarded to the Federal
4Bureau of Investigation for purposes of a background check.
5(f) The bureau may impose a fee not to exceed three dollars
6($3) for processing classifiable fingerprint cards submitted by
7applicants, excluding those submitted into an electronic fingerprint
8system using electronic fingerprint technology.
A licensed repossession agency or its registrants
begin delete mayend delete
12 make demand for payment in lieu of repossession
begin delete, if the .
13demand is made pursuant to an assignment for repossessionend delete
16In making demand upon a debtor for a money payment in lieu
17of repossession, the repossessor shall present the demand in
18compliance with the Rosenthal Fair Debt Collection Act (Title
191.6C (commencing with Section 1788) of Part 4 of Division 3 of
20the Civil Code), setting forth in the demand only the amount that
21was specified by the creditor in the repossession referral and the
22fees that are properly chargeable. Itemized receipts shall be
23furnished the debtor at the time payment is received. Payments
24received shall forthwith be transmitted to the creditor, disclosing
25the full amount of money received from the debtor in addition to
26the contract payments.
The director may assess administrative fines for any
30of the following prohibited acts:
31(a) Recovering collateral or making any money demand in lieu
32thereof, including, but not limited to, collateral registered under
33the Vehicle Code, that has been sold under a security agreement
34before a signed or telegraphic authorization has been received from
35the legal owner, debtor, lienholder, lessor, or repossession agency
36acting on behalf of the legal owner, debtor, lienholder, or lessor
37of the collateral. A telephonic assignment is acceptable if the legal
38owner, debtor, lienholder, lessor, or repossession agency acting
39on behalf of the legal owner, debtor, lienholder, or lessor is known
40to the licensee and a written authorization from the legal owner,
P4 1 debtor, lienholder, lessor, or repossession agency acting on behalf
2of the legal owner, debtor, lienholder, or lessor is received by the
3licensee within 10 working days or a request by the licensee for a
4written authorization from the legal owner, debtor, lienholder,
5lessor, or repossession agency acting on behalf of the legal owner,
6debtor, lienholder, or lessor is made in writing within 10 working
7days. Referrals of assignments from one licensee to another
8licensee are acceptable. The referral of an assignment shall be
9made under the same terms and conditions as in the original
10assignment. The fine shall be twenty-five dollars ($25) for each
11of the first five violations and one hundred dollars ($100) for each
12violation thereafter, per audit.
13(b) Using collateral or personal effects, which have been
14recovered, for the personal benefit of a licensee, or officer, partner,
15manager, registrant, or employee of a licensee. The fine shall be
16 twenty-five dollars ($25) for the first violation and one hundred
17dollars ($100) for each violation thereafter. This subdivision does
18not apply to personal effects disposed of pursuant to subdivision
19(c) of Section 7507.9. Nothing in this subdivision prohibits the
20using or taking of personal property connected, adjoined, or affixed
21to the collateral through an unbroken sequence if that use or taking
22is reasonably necessary to effectuate the recovery in a safe manner
23or to protect the collateral or personal effects.
24(c) Selling collateral recovered under the provisions of this
25chapter, except with written authorization from the legal owner or
26mortgagee thereof. The fine shall be one hundred dollars ($100)
27for the first violation and five hundred dollars ($500) for each
28violation thereafter, per audit.
29(d) Failing to remit all money due clients within 10 working
30days after finalization of the sale of collateral. The licensee shall
31deposit all money received in the form of cash or negotiable
32instruments made payable to the licensee for money due clients
33from the sale of collateral that has been repossessed in a trust
34account within five working days, and the money shall be
35withdrawn only for remittance to the client and for the payment
36of amounts due the licensee. The fine shall be two hundred fifty
37dollars ($250) for the first violation and one thousand dollars
38($1,000) for each violation thereafter. For purposes of this
39subdivision, “finalization of sale” means the time when the
40documents of title or ownership which permit transfer of title from
P5 1the legal owner to the purchaser are received by the repossession
3(e) Failing to remit moneys collected in lieu of repossession or
4redemption to a client within 10 working days after receipt of the
5moneys. The fine shall be two hundred fifty dollars ($250) for the
6first violation and one thousand dollars ($1,000) for each violation
8(f) Failing to deliver to a client any negotiable instrument
9received by the licensee made payable to the client within 10
10working days of receipt of the negotiable instrument. No licensee,
11manager, registrant, or employee of a licensee shall accept a
12negotiable instrument made payable to a client unless they have
13authorization from the client to accept the negotiable instrument.
14The fine shall be two hundred fifty dollars ($250) for the first
15violation and one thousand dollars ($1,000) for each violation
18 Unlawfully entering any private building or secured area
19without the consent of the owner, or of the person in legal
20possession thereof, at the time of repossession. The fine shall be
21five hundred dollars ($500) for each violation.
23 Committing unlawful assault or battery on another person.
24The fine shall be five hundred dollars ($500) for each violation.
26 Falsification or alteration of an inventory. The fine shall be
27twenty-five dollars ($25) for each violation.
29 Soliciting from the legal owner the recovery of specific
30collateral registered under the Vehicle Code or under the motor
31vehicle licensing laws of other states after the collateral has been
32seen or located on a public street or on public or private property
33without divulging the location of the vehicle. The fine shall be one
34hundred dollars ($100) for the first violation and two hundred fifty
35dollars ($250) for each violation thereafter.
Corrected 3-21-13—See last page. 98