In the event of any default by the buyer in the performance of his obligations under a contract or installment account, the holder, pursuant to any rights granted therein, may proceed to recover judgment for the balance due without retaking the goods, or he may retake the goods and proceed as hereinafter provided. If he retakes the goods, he shall, within 10 days, give notice to the buyer of his intention to sell the goods at public sale or give notice to the buyer of his intention to retain the goods in satisfaction of the balance due. The notice must state the amount of the overdue payments, that the buyer must pay, if he pays within 10 days of the notice, in order
to redeem the goods. In either case the buyer shall have an absolute right to redeem the goods within 10 days after the notice is given by paying or tendering the amount owing under the contract. If the holder gives notice of election to sell the goods the buyer shall also have the absolute right to redeem the goods at any time before sale by paying or tendering the amounts specified above and also any expense reasonably incurred by the seller or holder in good faith in repairing, reconditioning the goods or preparing them for sale. If the holder gives notice of his intention to retain the goods in satisfaction of the indebtedness he shall be deemed to have done so at the end of the 10-day period if the goods are not redeemed; at the time the notice is given, the holder shall furnish the buyer a written statement of the sum due under the contract and the expenses provided for in this section. For failure to render such a statement the holder shall forfeit to the buyer ten dollars ($10) and also be liable to
him for all damages suffered because of such failure.
Retail Installment SalesRepossession and Resale
Section § 1812.2
If a buyer fails to meet the terms of a purchase contract, the seller can either take back the goods or demand payment without taking them back. If the goods are reclaimed, the seller must notify the buyer within 10 days about plans to sell or keep the goods to settle the debt. The buyer has 10 days to pay off what's owed and reclaim the goods. If the seller plans to sell the goods, the buyer can still reclaim by paying off the balance and any costs incurred by the seller before the sale. If the seller keeps the goods instead, the buyer must be told how much is owed. If the seller fails to provide this information, they owe the buyer $10 and any related damages.
default by buyer installment account recover judgment
Section § 1812.3
This section says that when someone is told they can get their stuff back, the notice should be given to them personally or mailed to their last known address. If the item is going to be sold at a public auction, the notice must include when and where the sale will happen, and it has to be sent at least 10 days before the sale.
The notice provided for in Section 1812.2 shall be given to the buyer and any other person liable by causing it to be delivered personally or to be deposited in the United States mail addressed to the buyer or to such other person at his last known address and shall advise the buyer or such other person of his right to redeem as provided for in Section 1812.2. If the holder determines to sell the goods at public sale he shall give notice of the time and place of sale at least 10 days before the date of sale by delivering a copy of the notice personally to the buyer or other person liable or depositing the same in the United States mail addressed to the buyer or such
other person at his last known address.
notice delivery last known address right to redeem
Section § 1812.4
When items are resold, the money made goes first to cover the costs of the resale itself. Next, it pays for any costs associated with taking back the items, including reasonable attorney's fees, and other costs like storage, repairs, or preparing the items for sale. After all these costs are covered, the remaining money is used to pay off any remaining balance due under the original contract. If there's any money left over after that, it goes back to the buyer.
The proceeds of a resale shall be applied (1) to the payment of the expenses thereof, (2) to the payment of any expenses of retaking, including reasonable attorney’s fees actually incurred, and of any expenses of keeping, storing, repairing, reconditioning or preparing the goods for sale to which the holder may be entitled, (3) to the satisfaction of the balance due under the contract. Any sum remaining after the satisfaction of such claims shall be paid to the buyer.
proceeds of resale expenses of retaking reasonable attorney’s fees
Section § 1812.5
This law says that if the money from a sale isn't enough to cover certain costs, the seller can't demand the remaining amount from the original buyer or anyone who has taken over the buyer's responsibilities.
If the proceeds of the sale are not sufficient to cover items (1), (2) and (3) of Section 1812.4, the holder may not recover the deficiency from the buyer or from anyone who has succeeded to the obligations of the buyer.
sale proceeds deficiency recover deficiency
