Can a dealership assess a fee to a lien holder that fails to release the title in a timely manner once a payoff is made?
Can a dealership assess a fee to a lien holder that fails to release the title in a timely manner once a payoff is made?
Yes, a dealer may assess the legal owner or lessor a fee of $25 per day for each day that the release requirements are not satisfied, not to exceed a maximum payment of $2,500.
If the legal owner or lessor fails to pay within 60 days following written demand by the transferee, the amount shall be tripled, not to exceed a maximum payment of $7,500 (CA Vehicle Code 5753e).
You can review the CA vehicle code here:
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=VEH§ionNum...