Can a rent-to-own store in California have me arrested for missing payments?

Falling behind on payments is a civil matter, not a crime. The Karnette Act's only criminal penalty is a misdemeanor for a business that willfully violates it (Cal. Civ. Code §1812.647), and that applies to stores, not to a customer who falls behind.

In California, can I owe money after the item is repossessed?

California bars any fee for terminating or rescinding the agreement (Cal. Civ. Code §1812.624). Because the agreement renews one period at a time, you can return the item and stop owing future payments.

Rent-to-Own Laws in California: Your Rights

California's Karnette Rental-Purchase Act gives renters some of the country's strongest protections. The state charges no reinstatement fee, and if you return the item, you get a full year to reinstate. A store can't breach the peace or come into your home without your permission. Late fees are capped, and falling behind on payments is a civil matter, not a crime.

What California's rental-purchase law generally provides

Can you be charged with a crime?: Not for the debt, but keeping the item and refusing to return it can be charged as theft.
Can they enter your home?: No home entry without your permission
Getting it back (reinstatement): Yes, 365-day window
Paid enough to own it?: California sets the early-purchase price by formula: in the first few months, the cash price plus any past-due fees minus everything you've already paid; after that, the cash price times (payments remaining ÷ total payments) (Cal. Civ. Code §1812.632).
Fee caps: California charges no reinstatement fee. A late fee can't exceed the lesser of 5% of the payment or $5 (a $2 minimum may apply), and a security deposit can't exceed one month's rent (Cal. Civ. Code §§1812.624, 1812.626, 1812.625).
Owe a balance after repossession?: Not allowed

These describe what the statute says. Your own contract and the facts of your situation can affect how they apply.

Verified against California Karnette Rental-Purchase Act (Cal. Civ. Code §§ 1812.620–1812.650) on 2026-07-05.

California’s rent-to-own law, the Karnette Rental-Purchase Act, is built to protect customers, especially anyone who has fallen behind and wants to keep the item.

Can the store come into my home?

No. The Act bars a rental-purchase agreement from authorizing the store to commit a breach of the peace when repossessing, or to enter your home without your consent at the time of entry (Cal. Civ. Code §1812.624). The protection is explicit: the store needs your permission, given at that moment, to come inside.

Can I be arrested for not paying?

No. Falling behind is a civil matter. The only criminal penalty in the Karnette Act is a misdemeanor for a business that willfully violates the Act (§1812.647). It targets stores that break the rules, not customers who miss payments.

Can I be charged with theft for keeping the item?

This is a different question. California’s theft law lets a court rebuttably presume an intent to commit theft by fraud if a person who leased or rented property fails to return it after the owner sends a written demand by certified or registered mail (Cal. Penal Code §484). For a commonly used household item, the window is 20 days after that demand (it is 10 days for property worth more than $1,000 that is not a household item), and the demand has to be made within 30 days after the agreement expires.

Because the presumption can be rebutted, it is not the same as an automatic charge, and it is aimed at holding onto the item rather than being behind and trying to catch up. If you decide to walk away, returning the item, or responding to a demand, is what keeps you clear of it.

Reinstatement: up to a full year

This is where California stands out. If you fall behind, you can reinstate the agreement without losing rights you’d already earned. While you still have the item, you can catch up by the end of the 7th day after the due date (weekly payments) or the 10th day (longer intervals). If you’ve returned the item, you have up to one full year after the due date to reinstate (§1812.631). California also charges no reinstatement fee (§1812.624), so catching up costs you only what you already owed.

Fees are tightly capped

A late fee can’t exceed the lesser of 5% of the payment or $5 (a $2 minimum may apply), and a security deposit can’t exceed one month’s rent (§§1812.626, 1812.625). Combined with the no-reinstatement-fee rule, the cost of a rough patch stays low.

Buying it early, or returning it

California sets the early-purchase price by formula: in the first few months, the cash price plus any past-due fees minus everything you’ve already paid; after that, the cash price times (payments remaining ÷ total payments) (§1812.632). The ownership calculator can help you estimate it. Because the Act bars any fee for terminating the agreement (§1812.624), you can return the item and stop owing future payments.

California rent-to-own questions

Can a rent-to-own store in California have me arrested for missing payments?: Falling behind on payments is a civil matter, not a crime. The Karnette Act's only criminal penalty is a misdemeanor for a business that willfully violates it (Cal. Civ. Code §1812.647), and that applies to stores, not to a customer who falls behind.
Can I be charged with theft for keeping rent-to-own property in California?: Keeping the item is a separate question. California's theft law lets a court rebuttably presume an intent to commit theft by fraud if a person who leased or rented property fails to return it after the owner makes a written demand by certified or registered mail (Cal. Penal Code §484). For a commonly used household item the window is 20 days after that demand (10 days for property worth more than $1,000 that is not a household item), and the demand has to be made within 30 days after the agreement expires. The presumption can be rebutted, and it targets holding onto the item rather than being behind; returning the item, or responding to the demand, takes you out of it.
Can a rent-to-own store enter my home in California to take the item back?: A rental-purchase agreement can't authorize the store to commit a breach of the peace when repossessing, or to enter your home without your consent at the time of entry (Cal. Civ. Code §1812.624).
Can I get rented rented merchandise back after it is repossessed in California?: If you fall behind, you can reinstate without losing rights you'd earned. While you still have the item, you can cure by the end of the 7th day after the due date (weekly payments) or the 10th day (longer intervals). If you return the item, you have up to one year after the due date to reinstate (Cal. Civ. Code §1812.631). California allows no reinstatement fee (§1812.624).
In California, can I owe money after the item is repossessed?: California bars any fee for terminating or rescinding the agreement (Cal. Civ. Code §1812.624). Because the agreement renews one period at a time, you can return the item and stop owing future payments.

Sources

Cal. Civ. Code §1812.624: Prohibited provisions (retrieved 2026-06-19)
Cal. Civ. Code §1812.631: Reinstatement (retrieved 2026-06-19)
Cal. Civ. Code §1812.632: Acquisition of ownership and early purchase (retrieved 2026-06-19)
Cal. Civ. Code §1812.647: Willful violation; misdemeanor (retrieved 2026-06-19)
Cal. Civ. Code §1812.626: Late charge limit (retrieved 2026-06-19)
Cal. Civ. Code §1812.625: Security deposit limit (retrieved 2026-06-19)
Cal. Penal Code §484: Theft (failure to return leased or rented property) (retrieved 2026-06-21)

Every statement about the law on this page links to the official statute itself, so you can read the law, not just our summary of it. Notice something out of date? Let us know.

Consumer information, not legal advice. For your situation, consider speaking with a licensed California attorney or a local legal-aid office.