Legis
Transportation
AB 2437, Chapter 942, Statutes of 2026 · Wednesday 30 September 2026

Impounded vehicles

AB 2437 requires tow yards and impound facilities to accept debit cards and bars added paperwork for lawful vehicle releases.

Owners, lenders, and repossession agents can retrieve towed or impounded vehicles without being limited to cash or credit cards or facing document demands beyond those set by law.

What the law does ​

  • Requires storage facilities handling covered tows and impounds to accept valid bank debit cards, valid bank credit cards, and cash for towing, storage, and related fees.
  • Treats demands for ownership-release documents beyond the specified documents as an unlawful refusal to release a vehicle or other collateral.
  • Applies the debit-card requirement across specified impoundments, public tows, and private-property tows.
  • Subjects facilities that improperly refuse required payment methods to existing civil penalties, generally up to $500.

Who it affects ​

  • Drivers, registered owners, and their agents seeking release of towed or impounded vehicles.
  • Vehicle lenders, dealers, financial institutions, legal owners, and repossession agents.
  • Tow yards, storage facilities, impounding agencies, and law-enforcement agencies.