First — Understand Who You Are Dealing With
Exeter Finance is a Texas-based subprime auto lender partnered with more than 12,000 dealerships nationwide including CarMax. They have drawn scrutiny from state regulators in Massachusetts, Delaware, and Georgia, generated nearly 900 CFPB complaints in 2023 alone, and face a class action lawsuit alleging their post-repossession notices overstate the reinstatement amount borrowers must pay to get their vehicles back — a direct violation of the rules that govern whether they can collect a deficiency at all.
That last point matters immediately. If Exeter sent you a notice after repossession, read every number on it carefully before you do anything else.
For a full background on Exeter’s practices and regulatory record, see our article: What Is Exeter Finance?
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 Exeter 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 correct reinstatement amount, the correct 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 Exeter took it — clothes, car seat, tools, medication, documents — is not theirs to keep. Under Cal. Civ. Code § 2983.2, Exeter must inventory your personal property and make it available for retrieval. You have 60 days from the date of repossession to claim it.
Call Exeter 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, Exeter 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 Exeter 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 Exeter 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 Exeter’s business model — which ProPublica documented can make more money on defaulted loans than on loans repaid on time — expect them to pursue it.
Before Exeter 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 Exeter missed any of those steps — including overstating the reinstatement amount on the notice — Cal. Civ. Code § 2983.2(a) bars them from collecting the deficiency entirely. Not reduced — eliminated.
If you took payment extensions before the repossession, request a full payment history and accounting. If Exeter failed to clearly disclose that extensions would add significant interest costs, that may be a separate violation under the Dodd-Frank Act’s prohibition on unfair, deceptive, or abusive acts and practices (12 U.S.C. § 5531) and the Rosenthal Act (Cal. Civ. Code § 1788 et seq.).
Do not ignore a deficiency lawsuit. A default judgment gives Exeter 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 Exeter 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 Exeter or a debt buyer is pursuing.
Timing is critical. Once Exeter 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 Exeter 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 Exeter repo my car without warning in California?
Yes. California does not require advance notice before repossession. But Exeter must follow strict post-repossession rules under Cal. Civ. Code § 2983.2 — including sending the required notice with correct amounts before selling the vehicle.
What if the reinstatement amount on Exeter’s notice seems too high?
That is exactly what a class action lawsuit has alleged Exeter does — overstating the reinstatement amount by improperly including the full repossession cost. Do not pay based on a number you cannot verify. Contact Exeter in writing by certified mail demanding a breakdown of how the reinstatement amount was calculated. A defective notice may bar them from collecting any deficiency.
I took extensions and my balance ballooned — can I challenge that?
Possibly. If Exeter failed to clearly disclose that extensions would add significant interest and increase your total loan cost, that may be a violation of federal consumer protection law. Document every extension — date, what Exeter told you, and how your balance changed. That paper trail matters.
What if I never received the notice after repossession?
Failure to provide the § 2983.2 notice is itself a Rees-Levering violation. Contact Exeter in writing by certified mail demanding the notice and access to your personal property. Document that you never received it.
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.