AB 791, as amended, Hagman. Collateral recovery: repossessors.
(1) Existing 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 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, except for the registrant’s full name, the licensee’s name and address, and the registration number.
This bill would delete those exceptions from the requirement that the information in the application be confidential. Theend delete
begin delete alsoend delete prohibit a repossession agency from disclosing to the public, without a court order, the residence address, residence telephone number, cellular telephone number, driver’s license number, work schedule, past, present, or future location, or any other personal information of any licensee, registrant, employee, or independent begin delete contractor.end delete
(2) Existing law allows a licensed repossession agency or its registrants to make demand for payment in lieu of repossession.
This bill would prohibit a licensed repossession agency or its registrants from making a demand for payment in lieu of repossession, and would also prohibit a repossession agency from selling collateral recovered under the provisions of the act. The bill would make conforming changes.
The bill would also allow a person affiliated with a repossession agency to wear a badge, cap insignia, or jacket label if it bears on its face a substantial part of the repossession agency’s name, the license number issued by the Director of Consumer Affairs to that individual or
begin delete aend delete word begin delete referring to the individual as a repossessor.end delete The bill would authorize the director to assess a fine of $25 per violation of these provisions.
begin deleteno end delete.
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). The application shall be verified and shall
7include the following:
8(a) The full name, residence address, residence telephone
9number, date and place of birth, and driver’s license number of
10the applicant or registrant.
11(b) A statement listing any and all names used by the applicant
12or registrant, other than the name by which he or she is currently
13known. If the applicant or registrant has never used a name other
P3 1than his or her true name, this fact shall be set forth in the
3(c) The name and address of the licensee and the date the
4employment or contract commenced.
5(d) The title of the position occupied by the applicant or
6registrant and a description of his or her duties.
7(e) Two recent photographs of the applicant or registrant, of a
8type prescribed by the chief, and two classifiable sets of his or her
9fingerprints, one set of which shall be forwarded to the Federal
10Bureau of Investigation for purposes of a background check.
11(f) The bureau may impose a fee not to exceed three dollars
12($3) for processing classifiable fingerprint cards submitted by
13applicants, excluding those submitted into an electronic fingerprint
14system using electronic fingerprint technology.
Section 7507.4 of the Business and Professions
17Code is amended to read:
A licensed repossession agency or its registrants shall
19not make demand for payment in lieu of repossession and shall
20not sell collateral recovered under this chapter.
Section 7508.2 of the Business and Professions Code
23 is amended to read:
The director may assess administrative fines for any
25of the following prohibited acts:
26(a) Recovering collateral or making any money demand in lieu
27thereof, including, but not limited to, collateral registered under
28the Vehicle Code, that has been sold under a security agreement
29before a signed or telegraphic authorization has been received from
30the legal owner, debtor, lienholder, lessor, or repossession agency
31acting on behalf of the legal owner, debtor, lienholder, or lessor
32of the collateral. A telephonic assignment is acceptable if the legal
33owner, debtor, lienholder, lessor, or repossession agency acting
34on behalf of the legal owner, debtor, lienholder, or lessor is known
35to the licensee and a written authorization from the legal owner,
36 debtor, lienholder, lessor, or repossession agency acting on behalf
37of the legal owner, debtor, lienholder, or lessor is received by the
38licensee within 10 working days or a request by the licensee for a
39written authorization from the legal owner, debtor, lienholder,
40lessor, or repossession agency acting on behalf of the legal owner,
P4 1debtor, lienholder, or lessor is made in writing within 10 working
2days. Referrals of assignments from one licensee to another
3licensee are acceptable. The referral of an assignment shall be
4made under the same terms and conditions as in the original
5assignment. The fine shall be twenty-five dollars ($25) for each
6of the first five violations and one hundred dollars ($100) for each
7violation thereafter, per audit.
8(b) Using collateral or personal effects, which have been
9recovered, for the personal benefit of a licensee, or officer, partner,
10manager, registrant, or employee of a licensee. The fine shall be
11 twenty-five dollars ($25) for the first violation and one hundred
12dollars ($100) for each violation thereafter. This subdivision does
13not apply to personal effects disposed of pursuant to subdivision
14(c) of Section 7507.9. Nothing in this subdivision prohibits the
15using or taking of personal property connected, adjoined, or affixed
16to the collateral through an unbroken sequence if that use or taking
17is reasonably necessary to effectuate the recovery in a safe manner
18or to protect the collateral or personal effects.
19(c) Selling collateral recovered under this chapter. The fine shall
20be one hundred dollars ($100) for the first violation and five
21hundred dollars ($500) for each violation thereafter, per audit.
22(d) Unlawfully entering any private building or secured area
23without the consent of the owner, or of the person in legal
24possession thereof, at the time of repossession. The fine shall be
25five hundred dollars ($500) for each violation.
26(e) Committing unlawful assault or battery on another person.
27The fine shall be five hundred dollars ($500) for each violation.
28(f) Falsification or alteration of an inventory. The fine shall be
29twenty-five dollars ($25) for each violation.
30(g) Soliciting from the legal owner the recovery of specific
31collateral registered under the Vehicle Code or under the motor
32vehicle licensing laws of other states after the collateral has been
33seen or located on a public street or on public or private property
34without divulging the location of the vehicle. The fine shall be one
35hundred dollars ($100) for the first violation and two hundred fifty
36dollars ($250) for each violation thereafter.
Section 7508.7 is added to the Business and Professions
39Code, to read:
begin deleteA end deleterepossession
2agency shall not disclose to the public, without a court order, the
3residence address, residence telephone number, cellular telephone
4number, driver’s license number, work schedule, past, present, or
5future location, or any other personal information of any licensee,
6registrant, employee, or independent contractor that it employs.
Section 7508.8 is added to the Business and Professions
9Code, to read:
(a) A badge, cap insignia, or jacket label may be worn
11by a licensee, officer, director, partner, manager, independent
12contractor, or employee of a repossession agency. If a badge, cap
13insignia, or jacket label is worn, it shall bear on its face all of the
begin deleteA end deletesubstantial part of the repossession agency’s name.
16(2) The license number issued by the director to that individual
begin deleteA word referring to the individual as a repossessor. end delete
27 The director may assess a fine of twenty-five dollars ($25)
28per violation of
begin delete subdivision (a)end delete.