Winters

The principal issue in this case is whether the Rees-Levering Motor Vehicle Sales and Finance Act (RLA) (Civ. Code, § 2981 et seq.) prohibits an automobile dealer or assignee from retaining legal title to a vehicle in order to secure payment of additional amounts it charged to the buyer for the purchase of vendor’s single interest (VSI) insurance.

Facts

Since the facts are not in dispute, we adopt them substantially as set forth in the stipulation of agreed statement of facts.

On July 5, 1968, plaintiff Eugene Winters purchased a used 1965 Chevrolet automobile from Parkwood Chevrolet. The total purchase price of $2,299.20 was to be paid in 30 monthly installments of $56.64 commencing August 12, 1968, with a down payment of $500, and a pickup payment of $100 due on July 31, 1968. On July 12, 1968, Parkwood Chevrolet assigned the conditional sales contract to defendant Security Pacific National Bank (the bank). Thereafter, plaintiff paid off his monthly installments and requested that the bank transfer the certificate of legal title to him. The bank refused, asserting that plaintiff had not paid an additional $84.23 which represented the amount paid by the bank during…