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 prohibit, except as otherwise provided by law, 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 contractor that it employs.
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
begin delete repossession, andend delete would also prohibit a repossession agency from selling collateral recovered under the provisions of the begin delete act.end delete The bill would make conforming changes.
The bill would also allow a person affiliated with a repossession agency to wear
begin delete aend delete badge, cap insignia, or jacket begin delete labelend delete if it bears on its face all or a substantial part of the repossession agency’s name, the license number issued by the Director of Consumer Affairs to that individual or agency, and the word “repossessor.” The bill would require all badges, cap insignias, and jacket begin delete labelsend delete worn by a repossessor to be a standard design approved by the director and to be clearly visible. The
bill would prohibit a repossessor from wearing a badge on his or her begin delete belt.end delete The bill would make these provisions inapplicable to a holder of a temporary registration, as specified. The bill would authorize the director to assess a fine of begin delete $25 per violation of these provisions.end delete
Fiscal committee: yes.
State-mandated local program:
begin deleteno end delete.
The people of the State of California do enact as follows:
Nothing in this chapter prohibits the using or taking
4of personal effects that are connected, adjoined, or affixed to the
5collateral through an unbroken sequence, if that use or taking is
6reasonably necessary to effectuate the recovery in a safe manner
7or to protect the collateral or personal effects.
10 No storage fee shall be charged for the first week on any personal
11effects used to effectuate a recovery pursuant to this section. Any
12personal effects used or taken pursuant to this section shall be
13processed in a reasonably expedient manner pursuant to Sections
147507.9 and 7507.10.
(a) Upon the issuance of the initial registration,
2reregistration or renewal, the chief shall issue to the registrant a
3suitable pocket identification card. At the request of the registrant,
4the identification card may include a photograph of the registrant.
5The photograph shall be of a size prescribed by the bureau. The
6card shall contain the name of the licensee with whom the registrant
7is registered. The applicant may request to be issued an enhanced
8pocket card that shall be composed of durable material and may
9incorporate technologically advanced security features. The bureau
10may charge a fee sufficient to reimburse the department for costs
11for furnishing the enhanced pocket card. The fee charged may not
12exceed the actual cost for system development, maintenance, and
13processing necessary to provide the service, and may not exceed
14six dollars ($6). If the applicant does not request an enhanced card,
15the department shall issue a standard card at no cost to the
17(b) Until the registration certificate is issued or denied, a person
18may be assigned to work with a temporary registration on a secure
19form prescribed by the chief, and issued by the qualified certificate
begin delete that has been embossed by the bureau with the state sealend delete
21 for a period not to exceed 120 days from the date the employment
22or contract commenced, provided the person signs a declaration
23under penalty of perjury that he or she has not been convicted of
24a felony or committed any other act constituting grounds for denial
25of a registration pursuant to Section 7506.8 (unless he or she
26declares that the conviction of a felony or the commission of a
27specified act or acts occurred prior to the issuance of a registration
28by the chief and the conduct was not the cause of any subsequent
29suspension or termination of a registration), and that he or she has
30read and understands the provisions of this chapter.
31(c) The chief shall issue an additional temporary registration
32for not less than 60 days nor more than 120 days, if the chief
33determines that the investigation of the applicant will take longer
34to complete than the initial temporary registration time period.
35(d) No person shall perform the duties of a registrant for a
36licensee unless the person has in his or her possession a valid
37repossessor registration card or evidence of a valid temporary
38registration or registration renewal as described in subdivision (b)
39or (e) of this section or subdivision (c) of Section 7506.10. Every
40 person, while engaged in any activity for which licensure is
P5 1required, shall display his or her valid pocket card as provided by
3(e) A person may work as a registrant pending receipt of the
4registration card if he or she has been approved by the bureau and
5carries on his or her person a hardcopy printout or electronic copy
6of the bureau’s approval from the bureau’s Internet Web site and
7a valid picture identification.
Section 7507.4 of the Business and Professions Code
10 is amended to read:
A licensed repossession agency or its registrants shall
12not make demand for payment in lieu of repossession and shall
13not sell collateral recovered under this chapter.
With regard to collateral subject to registration
17under the Vehicle Code, a repossession is complete
begin delete when the
18repossessor gainsend delete
entry to the
begin delete collateral or when theend delete
21 collateral becomes connected to a tow truck or the
22repossessor’s tow vehicle, as those terms are defined in Section
23615 of the Vehicle Code.
begin delete Noend delete
person other than the legal owner may direct a
28repossessor to release a vehicle without legal authority to do so.
Section 7508.2 of the Business and Professions Code
31 is amended to read:
The director may assess administrative fines for any
33of the following prohibited acts:
34(a) Recovering collateral or making any money demand in lieu
35thereof, including, but not limited to, collateral registered under
36the Vehicle Code, that has been sold under a security agreement
37before a signed or telegraphic authorization has been received from
38the legal owner, debtor, lienholder, lessor, or repossession agency
39acting on behalf of the legal owner, debtor, lienholder, or lessor
40of the collateral. A telephonic assignment is acceptable if the legal
P6 1owner, debtor, lienholder, lessor, or repossession agency acting
2on behalf of the legal owner, debtor, lienholder, or lessor is known
3to the licensee and a written authorization from the legal owner,
4 debtor, lienholder, lessor, or repossession agency acting on behalf
5of the legal owner, debtor, lienholder, or lessor is received by the
6licensee within 10 working days or a request by the licensee for a
7written authorization from the legal owner, debtor, lienholder,
8lessor, or repossession agency acting on behalf of the legal owner,
9debtor, lienholder, or lessor is made in writing within 10 working
10days. Referrals of assignments from one licensee to another
11licensee are acceptable. The referral of an assignment shall be
12made under the same terms and conditions as in the original
13assignment. The fine shall be twenty-five dollars ($25) for each
14of the first five violations and one hundred dollars ($100) for each
15violation thereafter, per audit.
16(b) Using collateral or personal effects, which have been
17recovered, for the personal benefit of a licensee, or officer, partner,
18manager, registrant, or employee of a licensee. The fine shall be
19 twenty-five dollars ($25) for the first violation and one hundred
20dollars ($100) for each violation thereafter. This subdivision does
21not apply to personal effects disposed of pursuant to subdivision
22(c) of Section 7507.9. Nothing in this subdivision prohibits the
23using or taking of personal property connected, adjoined, or affixed
24to the collateral through an unbroken sequence if that use or taking
25is reasonably necessary to effectuate the recovery in a safe manner
26or to protect the collateral or personal effects.
27(c) Selling collateral recovered under this chapter. The fine shall
28be one hundred dollars ($100) for the first violation and five hundred dollars
30($500) for each violation
begin delete thereafter, per audit.end delete
31(d) Unlawfully entering any private building or secured area
32without the consent of the owner, or of the person in legal
33possession thereof, at the time of repossession. The fine shall be
34five hundred dollars ($500) for each violation.
35(e) Committing unlawful assault or battery on another person.
36The fine shall be five hundred dollars ($500) for each violation.
37(f) Falsification or alteration of an inventory. The fine shall be
38twenty-five dollars ($25) for each violation.
39(g) Soliciting from the legal owner the recovery of specific
40collateral registered under the Vehicle Code or under the motor
P7 1vehicle licensing laws of other states after the collateral has been
2seen or located on a public street or on public or private property
3without divulging the location of the vehicle. The fine shall be one
4hundred dollars ($100) for the first violation and two hundred fifty
5dollars ($250) for each violation thereafter.
Section 7508.7 is added to the Business and Professions
8Code, to read:
Except as otherwise provided by law, a repossession
10agency shall not disclose to the public, without a court order, the
11residence address, residence telephone number, cellular telephone
12number, driver’s license number, work schedule, past, present, or
13future location, or any other personal information of any licensee,
14registrant, employee, or independent contractor that it employs.
Section 7508.8 is added to the Business and Professions
17Code, to read:
begin deleteA end deletebadge, cap insignia, or jacket
begin delete labelend delete may be worn by a licensee, officer, director, partner,
21manager, independent contractor, or employee of a repossession agency. If a
23badge, cap insignia, or jacket
begin delete labelend delete is worn, it shall bear on
24its face all of the following:
25(1) All or a substantial part of the repossession agency’s name.
26(2) The license number issued by the
27director to that individual or agency.
28(3) The word “repossessor.”
29(b) A repossessor shall not wear a badge on his or her
begin delete belt.end delete
31(c) All badges, cap insignias, and jacket
begin delete labelsend delete worn by
32a repossessor shall be a standard design approved by the director
33and shall be clearly visible.
34(d) This section shall not apply to a holder of temporary
35registration pursuant to Section 7506.9.
36(e) The director may assess a fine of
begin delete twenty-five dollars ($25) .
37per violation of this sectionend delete