2009 California Business and Professions Code - Section 7508-7508.6 :: Article 9. Prohibited Acts And Citations

7508.  The director may assess administrative fines against any
repossession agency licensee, qualified certificate holder, or
registrant for any of the prohibited acts outlined in this article.

7508.1.  The director may assess administrative fines for the
following prohibited acts:
   (a) Knowingly making any false report to his or her employer or
client for whom information was being obtained. The fine shall be one
hundred dollars ($100) for the first violation, and five hundred
dollars ($500) for each violation thereafter.
   (b) Using any identification to indicate registration as a
repossessor, other than the bureau-issued registration card, except
an employer identification card issued by the repossession agency
which has met bureau approval. A bureau-issued registration card
shall be carried by those individuals specified by Section 7506.3,
and shall be shown on demand to any bureau employee or law
enforcement officer. The fine shall be twenty-five dollars ($25) for
each violation.
   (c) Using an alias in connection with the official activities of
the licensee's business. A notice of warning shall be issued for the
first violation. Thereafter the fine shall be twenty-five dollars
($25) for each violation.
   (d) Appearing as an assignee party in any court proceeding
involving claim and delivery, replevin, or other possessory court
action, action to foreclose a chattel mortgage, mechanic's lien,
materialman's lien, or any other lien. This section shall not
prohibit a licensee from appearing as a defendant in any of the
preceding actions. The fine shall be one hundred dollars ($100) for
each violation.

7508.2.  The director may assess administrative fines for any of the
following prohibited acts:
   (a) Recovering collateral or making any money demand in lieu
thereof, including, but not limited to, collateral registered under
the Vehicle Code, that has been sold under a security agreement
before a signed or telegraphic authorization has been received from
the legal owner, debtor, lienholder, lessor, or repossession agency
acting on behalf of the legal owner, debtor, lienholder, or lessor of
the collateral. A telephonic assignment is acceptable if the legal
owner, debtor, lienholder, lessor, or repossession agency acting on
behalf of the legal owner, debtor, lienholder, or lessor is known to
the licensee and a written authorization from the legal owner,
debtor, lienholder, lessor, or repossession agency acting on behalf
of the legal owner, debtor, lienholder, or lessor is received by the
licensee within 10 working days or a request by the licensee for a
written authorization from the legal owner, debtor, lienholder,
lessor, or repossession agency acting on behalf of the legal owner,
debtor, lienholder, or lessor is made in writing within 10 working
days. Referrals of assignments from one licensee to another licensee
are acceptable. The referral of an assignment shall be made under the
same terms and conditions as in the original assignment. The fine
shall be twenty-five dollars ($25) for each of the first five
violations and one hundred dollars ($100) for each violation
thereafter, per audit.
   (b) Using collateral or personal effects, which have been
recovered, for the personal benefit of a licensee, or officer,
partner, manager, registrant, or employee of a licensee. The fine
shall be twenty-five dollars ($25) for the first violation and one
hundred dollars ($100) for each violation thereafter. This
subdivision does not apply to personal effects disposed of pursuant
to subdivision (c) of Section 7507.9. Nothing in this subdivision
prohibits the using or taking of personal property connected,
adjoined, or affixed to the collateral through an unbroken sequence
if that use or taking is reasonably necessary to effectuate the
recovery in a safe manner or to protect the collateral or personal
effects.
   (c) Selling collateral recovered under the provisions of this
chapter, except with written authorization from the legal owner or
mortgagee thereof. The fine shall be one hundred dollars ($100) for
the first violation and five hundred dollars ($500) for each
violation thereafter, per audit.
   (d) Failing to remit all money due clients within 10 working days
after finalization of the sale of collateral. The licensee shall
deposit all money received in the form of cash or negotiable
instruments made payable to the licensee for money due clients from
the sale of collateral that has been repossessed in a trust account
within five working days, and the money shall be withdrawn only for
remittance to the client and for the payment of amounts due the
licensee. The fine shall be two hundred fifty dollars ($250) for the
first violation and one thousand dollars ($1,000) for each violation
thereafter. For purposes of this subdivision, "finalization of sale"
means the time when the documents of title or ownership which permit
transfer of title from the legal owner to the purchaser are received
by the repossession agency.
   (e) Failing to remit moneys collected in lieu of repossession or
redemption to a client within 10 working days after receipt of the
moneys. The fine shall be two hundred fifty dollars ($250) for the
first violation and one thousand dollars ($1,000) for each violation
thereafter.
   (f) Failing to deliver to a client any negotiable instrument
received by the licensee made payable to the client within 10 working
days of receipt of the negotiable instrument. No licensee, manager,
registrant, or employee of a licensee shall accept a negotiable
instrument made payable to a client unless they have authorization
from the client to accept the negotiable instrument. The fine shall
be two hundred fifty dollars ($250) for the first violation and one
thousand dollars ($1,000) for each violation thereafter.
   (g) Unlawfully entering any private building or secured area
without the consent of the owner, or of the person in legal
possession thereof, at the time of repossession. The fine shall be
five hundred dollars ($500) for each violation.
   (h) Committing unlawful assault or battery on another person. The
fine shall be five hundred dollars ($500) for each violation.
   (i) Falsification or alteration of an inventory. The fine shall be
twenty-five dollars ($25) for each violation.
   (j) Soliciting from the legal owner the recovery of specific
collateral registered under the Vehicle Code or under the motor
vehicle licensing laws of other states after the collateral has been
seen or located on a public street or on public or private property
without divulging the location of the vehicle. The fine shall be one
hundred dollars ($100) for the first violation and two hundred fifty
dollars ($250) for each violation thereafter.

7508.3.  A licensee, or any of his or her registrants or employees,
or a qualified certificate holder, shall be prohibited from using any
false or misleading representation during the course of recovery of
collateral and may be issued a notice of warning for the first
violation; assessed a twenty-five dollar ($25) fine for the second
violation; and assessed a one hundred dollar ($100) fine 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.
   (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 or
that is not intended to 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.

7508.4.  The director may assess administrative fines for any of the
following prohibited acts:
   (a) Conducting business from any location other than that location
to which a license was issued or conducting a business as an
individual, partnership, limited liability company, or corporation
unless the licensee holds a valid license issued to that exact same
individual, partnership, limited liability company, or corporation.
The fine shall be one thousand dollars ($1,000) for each violation.
   (b) Aiding or abetting an unlicensed repossessor or assigning his
or her license. "Assigning his or her license" means that no licensee
shall permit a registrant, employee, or agent in his or her own name
to advertise, engage clients, furnish reports, or present bills to
clients, or in any manner whatsoever to conduct business for which a
license is required under this chapter. The fine shall be one
thousand dollars ($1,000) for each violation.
   (c) Failing to register registrants within 15 days. The fine shall
be two hundred fifty dollars ($250) for each of the first two
violations and one thousand dollars ($1,000) for each violation
thereafter.
   (d) Employing a person whose registration has expired or been
revoked, denied, suspended, or canceled, if the bureau has furnished
a listing of these persons to the licensee. The fine shall be
twenty-five dollars ($25) for each violation.
   (e) Failing to notify the bureau, within 30 days, of any change in
officers. A notice of warning shall be issued for the first
violation. Thereafter, the fine shall be twenty-five dollars ($25)
for each violation.
   (f) Failing to present the debtor with an itemized receipt of
payment, if payment is made in lieu of repossession. The fine shall
be twenty-five dollars ($25) for the first violation and one hundred
dollars ($100) for each violation thereafter.
   (g) Failing to submit the notices regarding a violent act or
threatened violent act within seven days pursuant to Section 7507.6
or to submit a copy of a judgment awarded against the licensee for an
amount of more than the then prevailing maximum claim that may be
brought in small claims court within seven days pursuant to Section
7507.7. The fine shall be twenty-five dollars ($25) for the first
violation and one hundred dollars ($100) per violation thereafter.
   (h) Failing to include the licensee's name, address, and license
number in any advertisement. A notice of warning shall be issued for
the first violation. Thereafter, the fine shall be twenty-five
dollars ($25) for each violation.
   (i) Failing to maintain personal effects for at least 60 days. The
fine shall be twenty-five dollars ($25) for the first violation and
one hundred dollars ($100) for each violation thereafter.
   (j) Failing to provide a personal effects list or a notice of
seizure within the time limits set forth in Section 7507.9 or
7507.10. The fine shall be twenty-five dollars ($25) for the first
violation and one hundred dollars ($100) for each violation
thereafter.
   (k) Failing to file the required report pursuant to Section 28 of
the Vehicle Code. The fine shall be twenty-five dollars ($25) for
each of the first five violations and one hundred dollars ($100) for
each violation thereafter, per audit.
   (l) Failing to maintain an accurate record and accounting of
secure temporary registration forms. The qualified certificate holder
shall be fined twenty-five dollars ($25) for the first violation,
one hundred dollars ($100) for the second violation, two hundred
fifty dollars ($250) for the third violation, and two hundred fifty
dollars ($250) plus a one-year suspension of the privilege to issue
temporary registrations pursuant to Section 7506.9 for the fourth and
subsequent violations.
   (m) Representing that a licensee has an office and conducts
business at a specific address when that is not the case. The fine
shall be five thousand dollars ($5,000) for each violation.
   (n) Notwithstanding any other provision of law, the money in the
Private Security Services Fund that is attributable to administrative
fines imposed pursuant to subdivision (c) shall not be continuously
appropriated and shall be available for expenditure only upon
appropriation by the Legislature.

7508.5.  The director may assess administrative fines against a
repossession agency registrant for the following acts, in addition to
fines imposed pursuant to any other section in this article. The
fine shall be twenty-five dollars ($25) for each of the following
violations:
   (a) Knowingly submit a false report to his or her employer.
   (b) Submitting a report to a client without authorization by his
or her employer.
   (c) Failing to carry a bureau-issued identification card and
failing to show that card upon demand to a bureau employee or a law
enforcement officer.
   (d) Failing to register.
   (e) Failing to return his or her registration card to the employer
upon termination.
   (f) Failing to report a violent act involving the registrant to
the licensee or the licensee's qualified certificate holder within 24
hours.

7508.6.  The director may assess administrative fines against any
repossession agency licensee, qualified certificate holder, or
registrant for failure to notify the bureau within 30 days of any
change of residence or business address. The fine shall be
twenty-five dollars ($25) for each violation.