What happens after the car is taken?

California law requires that the consumer be sent a notice either by personal service or by certified mail. It must be sent or delivered to the consumer within 60 days of the repossession.

It is called a Notice of Intent to Dispose of Vehicle. Done properly, it informs the consumer how much is owed, how much it will cost get the car back, where to go to get the car back, and important information that is vital to protect your rights and preserve any defenses you have to a claim by the lender to a deficiency judgment. This document, like all your papers, is very important. If you receive one, be sure to save it.

After the sale of the vehicle, the Finance Company will normally report the repossession to the credit agencies, and may sue you for a deficiency. The deficiency is the difference between what you owed on the vehicle and what they got for it at auction. The difference is usually substantial. The Finance Company will probably sue you for the deficiency. Whether you owe a deficiency depends on whether the Finance Company complied with the Automobile Sales Finance Act.