First — Understand Who You Are Dealing With
Credit Acceptance Corporation — CAC — is a Michigan-based subprime auto lender with a documented history of predatory lending and aggressive collection practices. The CFPB and New York Attorney General jointly sued them in 2023 alleging CAC used an algorithm to project how much it could extract from borrowers through loan payments, late fees, repossession, deficiency judgments, and wage garnishment — without ever considering whether the borrower could afford to repay the loan. The Massachusetts Attorney General settled a similar lawsuit against CAC for over $27 million in 2021.
That history matters here. CAC’s business model is built around repossession and deficiency collection. Knowing your rights is how you push back.
For a full background on who CAC is and their regulatory record, see our article: What Is Credit Acceptance Corporation?
Step One — Do You Want the Car Back?
California law gives you two ways to recover a repossessed vehicle: reinstatement and redemption. Both have short deadlines.
Reinstatement
Reinstatement means bringing the loan current — paying the missed payments, late fees, and repossession costs — and continuing on the original loan terms. Under California Civil Code § 2983.3, you have the right to reinstate once within any 12-month period and twice over the life of the loan.
Redemption
Redemption means paying the entire remaining loan balance in full to get the car back. This right exists under California Civil Code § 2983.2(b).
Both options require CAC to send you a Notice of Intent to Dispose of Motor Vehicle under Cal. Civ. Code § 2983.2 before they can sell the car. That notice must state the reinstatement amount, the redemption amount, and the date after which the vehicle will be sold. You typically have 15 days from the date that notice is mailed to act.
Step Two — Get Your Personal Property Out
Whatever was in the car when CAC took it — clothes, car seat, tools, medication, documents — is not theirs to keep. Under Cal. Civ. Code § 2983.2, CAC must inventory your personal property and make it available for retrieval. You have 60 days from the date of repossession to claim it.
Call CAC immediately and ask for the inventory list. Schedule pickup in person with a photo ID. Get a written receipt for everything you recover. Do not sign anything releasing claims for missing or damaged property without understanding what you are giving up.
Under Cal. Civ. Code § 2984.1, CAC cannot charge you a fee to retrieve your personal property unless your contract specifically authorizes it.
Step Three — Check Whether the Repo Was Legal
California Civil Code § 2983.3 prohibits repossession agents from breaching the peace. That means no physical force or threats, no taking the car over your explicit oral objection, and no entering a closed structure like a garage without permission.
If the repo agent threatened you, took the car while you were objecting, or entered your property without permission — that may be a wrongful repossession. Document everything now: the date, time, location, what was said, any witnesses, and any video footage.
A wrongful repossession gives rise to claims against both the repo company and CAC under Cal. Civ. Code § 2983.3 and potentially under the Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code § 1788 et seq.) and the federal FDCPA (15 U.S.C. § 1692 et seq.). Both statutes carry statutory damages and attorney fee provisions.
Step Four — Watch for the Deficiency Lawsuit
After CAC sells your car at auction, they will calculate what you owe — the difference between the sale price and your remaining loan balance. That is the deficiency balance. Given CAC’s documented business model, expect them to pursue it aggressively.
Before CAC can collect a deficiency, California’s Rees-Levering Motor Vehicle Sales and Finance Act (Cal. Civ. Code §§ 2981–2984.6) requires them to have:
- Sent a proper Notice of Intent to Dispose of Motor Vehicle under § 2983.2 — with correct amounts, correct disclosures, mailed within 60 days of repossession.
- Conducted a commercially reasonable sale — fair notice, fair method, price reflecting actual market value.
- Provided a written post-sale accounting showing the sale price, remaining balance, all fees, and how the deficiency was calculated.
If CAC missed any of those steps, Cal. Civ. Code § 2983.2(a) bars them from collecting the deficiency entirely. Not reduced — eliminated.
The 2023 federal complaint against CAC described borrowers who paid thousands of dollars, had their vehicles repossessed and sold at auction for a fraction of market value, and were then sued for deficiency balances that exceeded what the car was ever worth. Scrutinize their numbers carefully.
Do not ignore a deficiency lawsuit. A default judgment gives CAC the ability to garnish your wages and levy your bank account under Cal. Code Civ. Proc. § 706.010 et seq. Our course walks through exactly how to respond to a California debt lawsuit step by step: https://law-without-lawyers.com/ca-debt-lawsuit/
Step Five — Consider Bankruptcy If the Picture Is Bigger
If the CAC repossession is part of a larger debt crisis — credit cards, medical bills, other accounts in default — bankruptcy may address everything at once.
Chapter 13 filed before the car is sold at auction triggers an automatic stay under 11 U.S.C. § 362 that halts the sale. You may be able to get the vehicle back and restructure what you owe through a repayment plan. If you have owned the car more than 910 days, a cramdown under 11 U.S.C. § 1325(a)(5) may let you reduce the loan balance to the car’s current market value and pay that lower amount over three to five years.
Chapter 7 can discharge the deficiency balance after the car is gone, along with your other unsecured debt under 11 U.S.C. § 727 — including any balance CAC or a debt buyer is pursuing.
Timing is critical. Once CAC sells the car at auction, Chapter 13’s vehicle recovery options disappear. If you are considering bankruptcy to save the car, act before the sale — not after.
If CAC is one of several creditors coming at you at once, it is worth understanding all your options before a judgment enters. You can request a consult to speak with a bankruptcy attorney.
Frequently Asked Questions
Can CAC repo my car without warning in California?
Yes. California does not require advance notice before repossession. But CAC must follow strict post-repossession rules under Cal. Civ. Code § 2983.2 — including sending the required notice before selling the vehicle.
What if I was current on my payments when they repossessed?
Document everything immediately — payment records, bank statements, confirmation numbers. A repossession while current on payments may be wrongful under Cal. Civ. Code § 2983.3 and a violation of the FDCPA and Rosenthal Act.
What if I never received the notice after repossession?
Failure to provide the § 2983.2 notice is itself a Rees-Levering violation. Contact CAC in writing by certified mail demanding the notice and access to your personal property. Document that you never received it — that paper trail matters if you later challenge the deficiency.
What if CAC’s collectors are harassing me?
Take it seriously. Under the FDCPA (15 U.S.C. § 1692 et seq.) and the Rosenthal Act (Cal. Civ. Code § 1788 et seq.), collectors cannot threaten action they cannot take or disclose your debt to third parties. Document every contact — date, time, what was said — and file a complaint at consumerfinance.gov/complaint.
Does this apply outside California?
Laws vary by state. Rees-Levering is California-specific. The FDCPA applies nationwide. If the repossession occurred in another state, consult the rules in your state.