Californians File Kia Car Repo Class Action Lawsuit

According to a recently filed Kia car repo class action lawsuit filed in California state court, a consumer finance company acted improperly with regard to consumers’ repossessed cars.

According to the class action lawsuit, all three plaintiffs seeking to represent the putative Class admit that they did lose their vehicles as a result of missing at least one payment. However, they argue that Kia Finance violated California state law, and more specifically the Rees-Levering Act, which provides for very specific disclosures when financing companies seek to repossess a vehicle.

Plaintiff Alyssa Caras, for example, was sent a notice to pay roughly $5,500 in order to keep her 2012 Kia Rio. However, after paying that amount, she alleges in the class action lawsuit that she was also asked to pay more than $500 in addition due to administrative and other costs. The Kia car repo class action lawsuit argues that this runs against state statutes. Further, it argues that by breaking the Rees-Levering Act, Kia and parent company Hyundai Capital were not able to seek extra money in the form of a deficiency judgment.

According to the class action lawsuit, the company placed onerous restrictions on the consumers beyond the lack of clear payment requirements including the total cost to keep their vehicle. By asking for proof of income, insurance, residence and other documentation, Kia Finance allegedly created “burdens that are not permitted by the Rees-Levering Act,” the class action lawsuit says. “A consumer … has no obligation to provide a financial institution with additional updated references, proof of income, a valid drivers license, or proof of residency. These are simply burdens designed to make reinstatement more difficult.”

Based on the similarity of the experiences of the three plaintiffs with the consumer financing wing of the car maker, they allege in the class action lawsuit there was a uniform corporate policy in place that allegedly violated state statutes. As a result, they seek to represent a putative Class of all California car buyers who went through the same repossession process with Kia Finance and had their vehicles repossessed in the four years prior to the filing of their class action lawsuit. In addition to violations of the Rees-Levering act, they also seek injunctive relief based on violations of California’s Unfair Competition Law.

The putative Class is represented by Amy Tay and Bryan Kemnitzer of Kemnitzer Barron & Krieg LLP.

The Kia Car Repo Class Action Lawsuit is Debra Johnson, et al. v. Hyundai Capital America, et al., Case No. BC565263, in Superior Court for the State of California, Los Angeles Division.