First — Understand Who You Are Dealing With
DriveTime is the largest buy-here, pay-here used car dealer in the country. Unlike most auto lenders, DriveTime sold you the car and holds your loan through their affiliated finance company, DT Acceptance Corporation. There is no third-party lender. DriveTime is both the seller and the collector — and they have an extensive collections operation built for exactly this situation.
The CFPB fined DriveTime $8 million in 2014 for harassing debt collection calls, calling borrowers at work after being told to stop, harassing personal references, and reporting inaccurate repossession information to the credit bureaus for as many as 90,000 customers.
That history matters. DriveTime does not always follow the rules. Knowing your rights is how you push back.
For a full background on who DriveTime is and their regulatory record, see our article: What Is DriveTime?
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 DriveTime 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 DriveTime took it — clothes, car seat, tools, medication, documents — is not theirs to keep. Under Cal. Civ. Code § 2983.2, DriveTime must inventory your personal property and make it available for retrieval. You have 60 days from the date of repossession to claim it.
Call DriveTime 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, DriveTime 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 DriveTime 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 DriveTime 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 DriveTime’s buy-here, pay-here model and documented collection practices, expect them to pursue it.
Before DriveTime 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 DriveTime missed any of those steps, Cal. Civ. Code § 2983.2(a) bars them from collecting the deficiency entirely. Not reduced — eliminated.
Do not ignore a deficiency lawsuit. A default judgment gives DriveTime 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 — Check Your Credit Report
DriveTime has a documented history of reporting inaccurate repossession information to the credit bureaus — including wrong repossession dates that make the derogatory item appear more recent than it actually is. The CFPB found they did this to as many as 90,000 customers.
Pull your credit reports from all three bureaus at AnnualCreditReport.com and check the DriveTime account carefully. Look for incorrect repossession dates, wrong balances, and accounts still showing as open when they should be closed.
If you find errors, dispute them in writing by certified mail with each bureau under the Fair Credit Reporting Act (15 U.S.C. § 1681i) and California’s Consumer Credit Reporting Agencies Act (Cal. Civ. Code § 1785.1 et seq.).
Step Six — Consider Bankruptcy If the Picture Is Bigger
If the DriveTime 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.
Timing is critical. Once DriveTime 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 DriveTime 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 DriveTime repo my car without warning in California?
Yes. California does not require advance notice before repossession. But DriveTime must follow strict post-repossession rules under Cal. Civ. Code § 2983.2 — including sending the required notice before selling the vehicle.
How many payments behind before DriveTime repossesses?
DriveTime can repossess after a single missed payment if your contract does not provide a grace period. Given that nearly half their loan portfolio is delinquent at any given time, their collections operation moves quickly. Do not wait to contact them if you are falling behind.
What if I never received the notice after repossession?
Failure to provide the § 2983.2 notice is itself a Rees-Levering violation. Contact DriveTime in writing by certified mail demanding the notice and access to your personal property. Document that you never received it.
What if DriveTime’s collectors are harassing me?
The CFPB already found DriveTime guilty of exactly that. Under the FDCPA (15 U.S.C. § 1692 et seq.) and the Rosenthal Act (Cal. Civ. Code § 1788 et seq.), collectors cannot call you at work after you ask them to stop, contact your references, or call wrong numbers repeatedly. Document every contact — date, time, what was said.
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.