California CCP §1582 Explained: The Asset Locator Law

Last updated 2026-07-28

Any business that charges a fee to help you recover unclaimed property in California operates under a specific law: California Code of Civil Procedure section 1582. Understanding what it requires is the fastest way to tell a legitimate service from one that isn't following the rules.

What CCP §1582 is

CCP §1582 governs "asset locators" — sometimes called finders or heir hunters — who charge a fee to help someone recover property held by the state, including unclaimed property reported to the California State Controller's Office.

It exists to protect consumers from predatory fees and pressure tactics, since asset locators are often reaching out to people who don't yet know money is owed to them.

The 10% fee cap

The law caps an asset locator's fee at 10% of the amount actually recovered for the client. This is a hard maximum, not a typical or suggested rate — no locator operating under California law can legally charge more.

If a company quotes a higher percentage, or bundles in additional charges that push the effective rate above 10%, that is a violation of the statute.

No upfront fees

The fee can only be collected from funds actually recovered — never before. A legitimate locator earns nothing if the claim isn't approved and paid, which is why the arrangement is called a contingency fee.

Any request for payment before funds are recovered — a "processing fee," a "verification fee," or anything similar — is not consistent with how §1582 works and should be treated as a red flag.

Written disclosure requirement

The law requires a written, signed agreement disclosing the fee arrangement before the locator provides services. This agreement should clearly state the percentage fee, that it only applies to recovered funds, and the client's right to file directly with the state for free instead.

A locator who doesn't provide this kind of written disclosure before you sign up isn't meeting the law's basic requirement.

Your right to file yourself, for free

Nothing in California law requires you to use a paid locator. You can always search and file directly with the state at no cost through claimit.ca.gov. A locator's value is doing the paperwork and follow-up for you — not access to information you couldn't get on your own.

Frequently asked questions

Does CCP §1582 apply to every unclaimed property finder in California?

Yes, it governs any business charging a fee to locate and recover property held by the state on behalf of a client in California.

Can a company legally charge more than 10%?

No. Ten percent of the amount actually recovered is the statutory maximum under California law.

What should a written disclosure agreement include?

At minimum, the fee percentage, confirmation that it applies only to recovered funds, and a statement that you can file directly with the state for free.

Is there a state agency that enforces §1582?

Complaints about unclaimed-property locators can generally be directed to California consumer protection authorities. If you believe a locator has violated the law, that's worth reporting.

Why do you charge 10% if I could file for free?

Our fee covers the time we spend searching, preparing documentation, and following up with the state on your behalf — but you're never required to use us. Filing yourself, for free, is always your right.

Related guides

• Is Unclaimed Money Real? A Skeptic's Guide
• Unclaimed Property Red Flags: How to Avoid Scams
• Do I Need a Finder to Claim Unclaimed Property in California?