Are the Lender of a repossession allowed to charge storage fee and in state California?

In the state of California, if a lender repossesses a vehicle, the lender is entitled to charge reasonable storage fees. However, the lender must provide the borrower with a written statement within 10 days of the repossession that contains the following information:

- the location of the vehicle;

- the amount of the storage fees;

- the rate at which the storage fees are accruing; and

- the date on which the vehicle will be sold or otherwise disposed of if the storage fees are not paid.

The lender can only charge storage fees for the actual period of time that the vehicle is in storage. If the vehicle is sold or otherwise disposed of, the lender must stop charging storage fees.

The lender is also required to provide the borrower with a notice of the sale of the vehicle at least 10 days before the sale. The notice must include the following information:

- the date, time, and place of the sale;

- a description of the vehicle;

- the amount of the debt owed to the lender; and

- the minimum bid required for the vehicle.

If the borrower does not redeem the vehicle before the sale, the lender may sell the vehicle at a public auction. The lender must use reasonable efforts to sell the vehicle for the highest possible price. The lender is entitled to apply the proceeds of the sale to the debt owed to the lender. If there is any remaining proceeds, the lender must pay them to the borrower.

If you are a borrower who has had your vehicle repossessed, you should contact a qualified attorney to discuss your rights.