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  In California, like in all other states, creditors retain certain rights to financed purchases until the borrower pays off the item in full. For instance, if a California consumer finances an automobile and stops making payments, then the creditor can repossess the vehicle. California has adopted the Uniform Commercial Code on this issue, so the creditor can repossess the vehicle with a court order.
  
  

Sales Contract

• In order for a creditor to loan someone money, that person must sign and agree to a sales contract. The sales contract will spell out the terms of the agreement, including the interest rate, number of payments and amount of money for each payment. In addition, the sales contract defines what behavior constitutes a "default" and what occurs if the borrower defaults. Typically, default simply means the borrower stops making payments. When the borrower goes into default, the creditor may then repossess the vehicle.
  
  

Repossession

• California law does not require that the creditor give the borrower notice prior to repossessing the vehicle. That means the creditor can send a tow truck to the borrower's house, chain it up and tow it away. However, in repossessing the vehicle, they must do it without "breaching the peace." That basically means that the creditor cannot use force or the threat of force to repossess the vehicle. Once the creditor has repossessed the vehicle, it can resell the vehicle at an auction.
  
  

Redemption

• California, like most states, allows the borrower a ten-day time period to get the car back before the creditor resells it. This process is called redemption. To redeem a repossessed vehicle in California, the borrower must satisfy all outstanding back payments, pay the costs incurred for storage and repossession and show proof of current car insurance and driver's license. However, even if a borrower meets all of those requirements, the creditor can still refuse to return the vehicle if the borrower lied on the credit application, tried to hide the automobile, intentionally damaged the car or used the car in the commission of a crime. Finally, the creditor can refuse to return the automobile if it's the borrower's second repossession in a twelve-month period or it's the third time the creditor has repossessed that automobile.
  
  

Warning

• Please consult a qualified attorney licensed to practice law in California to find out how the facts of your situation apply to California vehicle repossession laws, which are subject to change.