California Business and Professions Code 7508.3 – A licensee, or any of his or her registrants or employees, or a …
A licensee, or any of his or her registrants or employees, or a qualified certificate holder, is prohibited from using any false or misleading representation during the course of recovery of collateral. The bureau shall issue a notice of warning for a first violation, a fine of one hundred dollars ($100) for the second violation, and a fine not to exceed two hundred fifty dollars ($250) for any subsequent violation of any of the following:
(a) The false representation or implication that the individual is vouched for, bonded by, or affiliated with the United States or with any state, county, city, or city and county, including the use of any badge, uniform, or facsimile thereof.
Terms Used In California Business and Professions Code 7508.3
- Arrest: Taking physical custody of a person by lawful authority.
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Bureau: means the Bureau of Security and Investigative Services. See California Business and Professions Code 7500.1
- City: includes city and county. See California Business and Professions Code 18
- Collateral: means any specific vehicle, trailer, boat, recreational vehicle, motor home, appliance, or other property that is subject to a security agreement. See California Business and Professions Code 7500.1
- County: includes city and county. See California Business and Professions Code 17
- Debtor: means any person obligated under a security agreement. See California Business and Professions Code 7500.1
- Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
- Licensee: means an individual, partnership, limited liability company, or corporation licensed under this chapter as a repossession agency. See California Business and Professions Code 7500.1
- Person: includes any individual, partnership, limited liability company, or corporation. See California Business and Professions Code 7500.1
- Repossession: means any of the following:
California Business and Professions Code 7500.1
- State: means the State of California, unless applied to the different parts of the United States. See California Business and Professions Code 21
(b) The false representation or implication that any individual is an attorney or that any communication is from any attorney.
(c) The representation or implication by a repossession agency or its registrants or employees that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person, unless the action is lawful and the creditor has instructed the repossession agency to inform the debtor that the creditor intends to take the action.
(d) The threat to take any action that cannot legally be taken.
(e) The false representation or implication that the debtor committed any crime or other conduct in order to disgrace the debtor.
(f) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any state, or which creates a false impression as to its source, authorization, or approval.
(g) The false representation or implication that documents are legal process.
(h) The use of any business, company, or organization name other than the true name of the repossession agency’s business, company, or organization.
(i) The use of any deceptive forms.
(Amended by Stats. 2016, Ch. 800, Sec. 6. (SB 1196) Effective January 1, 2017.)