Section 26-C2608. REPOSSESSION

 

2608.1No person, except a licensee or the authorized agent of a licensee acting under or by virtue or a right or authority contained in the evidence of indebtedness of, or instrument of security for, a loan of money made by that licensee, shall repossess within the District of Columbia property which was accepted as collateral security for a loan of money.

 

2608.2No person shall repossess, seize, or participate in any manner in the physical repossession or seizure of personal property offered as collateral security for a loan of money without first having three (3) sets of his or her fingerprints taken by the Metropolitan Police Department and filing the same with the Director or the Director's designee.

 

2608.3In the case of the repossession of property which was accepted as collateral security for a loan of money, it shall be the duty of the licensee for whose account the property was repossessed to give four (4) days written notice to the borrower by registered mail of each of the following:

 

(a)The proposed date, time, and place of the sale or other disposition of the property;

 

(b)The actual amount of the loan and other charges due; and

 

(c)That the borrower may, within the four (4) day notice period, redeem the property by paying to the licensee the actual amount of the loan and lawful charges authorized by this chapter.

 

2608.4If the borrower fails to redeem the property under § 2608.3(c), unless the period of redemption is extended by the licensee, the licensee shall effect the cancellation of any insurance on the property for which the premium has been paid by the borrower.

 

2608.5Upon cancellation of an insurance policy under § 2608.4, the licensee shall ascertain the amount of unearned premium to be refunded by the insurance company, and shall apply the amount of that refund to the actual amount of the loan and charges authorized by this chapter.

 

2608.6If the borrower fails to redeem the property under § 2608.3(c), the licensee shall sell or dispose of (or cause the sale or disposition of) the property at a price not less than the highest current market value of the property at the time of sale or disposition.

 

2608.7Within ten (10) days after the sale or disposition of the property under this section, the licensee shall do the following:

 

(a)Apply the proceeds of the sale or disposition of the property to payment of the actual amount of the loan and lawful charges authorized by this chapter;

 

(b)Remit to the borrower any balance; and

 

(c)Deliver the note or other evidence of indebtedness to the borrower marked "PAID AND CANCELLED," along with a release of any evidence of indebtedness or instrument of security for the loan.

 

2608.8If the price paid for property at sale or disposition is less than the total actual amount of the loan (plus lawful charges authorized under this chapter), the note or other evidence of indebtedness of the borrower shall be endorsed by the licensee to show curtailment of the actual amount of the loan in an amount equal to the sale or disposition price less lawful charges authorized by this chapter.

 

2608.9Within five (5) days after the sale or disposition of the property, the licensee shall deliver to the borrower a full account giving the date, time, and place of the sale, the price for which the property was sold or disposed of, an itemized statement of expenses incident to the sale or disposition, and the name of the person to whom the property was sold or transferred.

 

2608.10The licensee shall deliver a copy of the information provided to the borrower under § 2608.9 to the Director or the Director's designee.

 

2608.11Whenever within the knowledge of the licensee in the repossession of collateral security, property other than the collateral is taken, it shall be the duty of the person secured by the instrument granting or purporting to grant authority for the repossession to tender delivery of the other property, in the same condition as it was at the time of the taking, to the person from whom that other property was taken, within forty-eight (48) hours after the taking.

 

2608.12Each licensee shall make all repairs to repossessed property which will be compensated by the insurance covering the property at the time of repossession.

 

source

Section 7 of Regulations for the conduct of the business of loaning money, Commissioners' Order 275,403/13, promulgated September 6, 1949, 5Q DCRR §§ 7.1 through 7.3, Special Edition (September 21, 1970).