MultiGen Law Institute is a consumer-advocacy organization that helps California borrowers understand their rights when a subprime auto lender like American Credit Acceptance repossesses a vehicle. This page is general information about California law, not legal advice. California borrowers have unusually strong protections here: American Credit Acceptance already agreed to forgive more than $98 million in deficiency balances across roughly 8,500 accounts to settle Jay Sherrard et al. v. American Credit Acceptance LLC (L.A. County Superior Court No. 19STCV43101), a case alleging its post-repossession notices did not comply with California’s Rees-Levering Act. If your car was repossessed, the rules below may work strongly in your favor.
This guide covers California. For the full state-by-state breakdown, see American Credit Acceptance repossession laws in all 50 states.
When can American Credit Acceptance repossess your car in California?
California allows “self-help” repossession, meaning American Credit Acceptance can take your car once you are in default without first going to court or giving advance warning. However, the repossession agent may not “breach the peace” — they cannot use force, threats, or physical confrontation, and generally cannot break into a locked garage to reach the vehicle. If the repossession involved a breach of the peace, that conduct may itself be unlawful. Repossession agents in California must also be licensed and must promptly notify local law enforcement after taking the car.
The Rees-Levering notice rules — cure and reinstatement in California
California’s Rees-Levering Automobile Sales Finance Act (Cal. Civ. Code §2981 et seq.) governs consumer car loans. Under Civil Code §2983.2, before selling your repossessed car American Credit Acceptance must send a detailed written Notice of Intent to Dispose of the vehicle, giving you at least 15 days and disclosing the amount you must pay to get the car back and your right to reinstate the contract. Under Civil Code §2983.3, you generally have the right to reinstate the contract by curing the default — paying the missed payments plus reasonable repossession costs — rather than paying off the entire loan balance. That reinstatement right is a powerful tool many California borrowers do not realize they have.
After the repossession — sale, redemption, and your personal property
After American Credit Acceptance repossesses the car, you have two main ways to recover it during the notice period: reinstate the contract (cure the default) or redeem it by paying the full balance owed. You are also entitled to retrieve your personal belongings from inside the vehicle — the lender cannot keep or charge you for your personal property. If the car is eventually sold, the sale must be commercially reasonable, and American Credit Acceptance must account for how the sale proceeds were applied to your balance.
Can American Credit Acceptance sue you for a deficiency in California? (the notice-defect defense)
A “deficiency” is the balance that remains after the repossessed car is sold for less than you owed. This is the heart of the Sherrard case: under California law, a lender may collect a deficiency only if it gave a post-repossession notice that was timely and contained every disclosure Civil Code §2983.2 requires. If the notice was defective, the deficiency is barred entirely — the lender cannot collect it. Plaintiffs alleged that American Credit Acceptance’s statutory notices were deficient, and rather than litigate to judgment ACA agreed to waive over $98 million in deficiency balances. If you are being pursued for a deficiency, the exact wording of the notice you received may be your strongest defense.
How long can they collect? California’s statute of limitations
A car loan is a written contract, and California’s statute of limitations for a written contract is four years under Code of Civil Procedure §337. The clock generally starts running from the date of your default or last payment. If American Credit Acceptance or a debt buyer sues you more than four years after that date, the debt is time-barred and the statute of limitations is an affirmative defense you can raise. Be careful: making a new payment or acknowledging the debt in writing can restart the clock, so confirm the dates before you act.
Your consumer-protection rights in California
Beyond Rees-Levering, California gives borrowers several tools. The Rosenthal Fair Debt Collection Practices Act applies to creditors like American Credit Acceptance collecting their own debts and bars harassment, false statements, and abusive collection tactics. California’s Consumers Legal Remedies Act and the Unfair Competition Law (Business & Professions Code §17200) can reach deceptive or unfair auto-lending and collection practices. You can also file complaints with the California Department of Financial Protection and Innovation (DFPI), which has taken enforcement action against auto lenders, and with the California Attorney General’s office.
Repossessed by American Credit Acceptance in California? Here’s what to do
- Save every document American Credit Acceptance sent you — especially the post-repossession Notice of Intent to Dispose — and note the dates you received them.
- Compare that notice against Civil Code §2983.2’s requirements; a missing or defective disclosure can bar any deficiency.
- Ask about reinstatement under §2983.3 if you want the car back and can cure the default.
- Track your default/last-payment date against the four-year limitations period, and never make a payment that could restart it without understanding the consequences.
- File complaints with the DFPI and the California Attorney General, and consider consulting a licensed California consumer attorney about the Sherrard-style notice defense.
American Credit Acceptance’s $98 million California settlement shows how seriously the Rees-Levering notice rules are taken. To see other actions and settlements involving the company, visit the class-action list. If you want to respond on your own, the pro-se kit walks you through the documents and defenses step by step.
MultiGen Law Institute is a consumer-advocacy organization, not a law firm, and does not provide legal representation. The above is general information about California law and is not legal advice. Laws change and every situation is different; consult a licensed California attorney about your specific circumstances.
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