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AB-2262 Repossessors.(2003-2004)

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CALIFORNIA LEGISLATURE— 2003–2004 REGULAR SESSION

Assembly Bill
No. 2262

Introduced  by  Assembly Member Oropeza

February 19, 2004

An act to add Section 7508.7 to the Business and Professions Code, relating to repossessors.


LEGISLATIVE COUNSEL'S DIGEST


AB 2262, as introduced, Oropeza. Repossessors.
Existing law, the Collateral Recovery Act, provides for the licensure and regulation by the Bureau of Security and Investigative Services, of persons engaged in the activities of a repossession agency, as defined. Under existing law, a violation of the act’s provisions is a crime.
This bill would require a licensee or specified persons acting for a licensee in the course of recovery of collateral at a debtor’s residence to identify himself or herself, the collateral being recovered, and its legal owner. The bill would prohibit those persons from using a plan, scheme, or ruse that misrepresents their purpose of making a recovery of collateral.
Because the bill would specify an additional requirement under the act, the violation of which would be a crime, it would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 7508.7 is added to the Business and Professions Code, to read:

7508.7.
 (a) A licensee or any of his or her registrants or employees or a qualified certificate holder during the course of recovery of collateral at the residence of a debtor shall clearly, affirmatively, and expressly reveal at the time of initial contact with the debtor and before making any other statement, except a greeting, or asking the debtor any other questions, that the purpose of the contact is to effect a recovery or collateral. To reveal the purpose of the contact, the person shall do all of the following:
(1) State the identity of the person making the recovery of collateral.
(2) State the name of the legal owner of the collateral being recovered.
(3) State the collateral being recovered.
(4) Display identification that includes the information required by paragraphs (1) and (2) as well as the address of the place of business of one of those persons so identified.
(b) A licensee or any of his or her registrants or employees or a qualified certificate holder during the course of recovery of collateral at the residence of a debtor may not use any plan, scheme, or ruse that misrepresents his or her true status or mission for the purpose of making the recovery of collateral.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.