AFSA’s Letter to CA on Vehicle Repossessions
AFSA’s State Government Affairs team released a joint comment letter earlier this week to California’s Assembly Judiciary Committee in regards to Assembly Bill 2228 and vehicle repossessions. The letter emphasizes that the bill’s proposed language allows repossession agencies in California to charge any fee for retrieving personal property from repossessed vehicles, contrary to federal consumer protection laws. It prohibits oversight required by the Dodd-Frank Act by treating fee amounts as confidential information.
The proposed law would prevent finance companies from safeguarding customers against illegal fees, possible discrimination, and other unfair practices regarding their personal property. This could lead to serious harm for customers if their property is held or disposed of due to fee non-payment or difficulties in locating it.
While the legislation claims to prevent repossession agencies from breaking laws by keeping information confidential, it poses substantial risks to consumers and regulatory compliance by contradicting federal regulations. AFSA urges the state to change the language suggested in AB 2228 by eliminating the proposed alterations to statutes regarding consumer personal property, which encompasses the fees associated with that property and any additional confidentiality stipulations.
This letter, along with SGA’s other recent letters, can be found on the direct advocacy section of AFSA’s website.
April 18th, 2024
