Miss a payment? Your car stops running

[dmcowen674]

9-25-2014

http://beta.slashdot.org/story/207681

Miss a Payment? Your Car Stops Running



Auto loan borrowers considered subprime must have their car outfitted with a so-called starter interrupt device, which allows lenders to remotely disable the ignition. By simply clicking a mouse or tapping a smartphone, lenders retain the ultimate control.



Borrowers must stay current with their payments, or lose access to their vehicle and a leading device maker, PassTime of Littleton, Colo., says its technology has reduced late payments to roughly 7 percent from nearly 29 percent. "The devices are reshaping the dynamics of auto lending by making timely payments as vital to driving a car as gasoline."

Mary Bolender, who lives in Las Vegas, needed to get her daughter to an emergency room, but her 2005 Chrysler van would not start. Bolender was three days behind on her monthly car payment.

Others said their cars were shut down while idling at stoplights. Some described how they could not take their children to school or to doctor's appointments. One woman in Nevada said her car was shut down while she was driving on the freeway.

Attorney Robert Swearingen says there's an old common law principle that a lender can't "breach the peace" in a repossession. That means they can't put a person in harm's way. To Swearingen, that would mean "turning off a car in a bad neighborhood, or for a single female at night."

 

[dmcowen674]

This will continue until someone dies.

 

[Corn]

All for this with one major exception: cannot shut off the car when running. Just disabling the starter should suffice. No one gets put in harm's way then.

 

[Genx87]

Yeah this will work out well. Some deadbeat driving down the freeway at 70 mph and he loses power steering and brakes. What could go wrong?

 

[fskimospy]

Yeah this will work out well. Some deadbeat driving down the freeway at 70 mph and he loses power steering and brakes. What could go wrong?

As per the article, the systems are designed to keep you from starting the car, not to shut it off while it's operating. Yes I know in the article someone says that happened anyway, but that seems unlikely to me. (it's called a starter interrupt device for a reason)

These kind of devices are shitty and really open to abuse, but it doesn't appear that what you're describing is an issue.

 

[GoPackGo]

They have been doing that here in MN for years. That is what you get with "no credit check" places

 

[PokerGuy]

All for this with one major exception: cannot shut off the car when running. Just disabling the starter should suffice. No one gets put in harm's way then.

Exactly. If you don't pay, you don't have a right to drive the vehicle, so I have no problem with the lender simply disabling it until you do pay. It's kind of like putting one of those boots on a car for parking violations.

The idea of shutting the vehicle down while it's running is an incredibly stupid one. I'm amazed lenders would subject themselves to that kind of liability. Can you imagine the amount of money they'd be sued for if a vehicle got turned off while driving on the highway and plowed into other vehicles?? They'd get sued by the borrower (the driver), but they'd also get sued by every other vehicle on the road, not to mention criminal charges of reckless endangerment. Who in the world would authorize such a thing? Idiots.

Guess they'll learn their lesson soon enough, there's going to be some massive suit and they'll change the process in a hurry.

 

[GoPackGo]

Exactly. If you don't pay, you don't have a right to drive the vehicle, so I have no problem with the lender simply disabling it until you do pay. It's kind of like putting one of those boots on a car for parking violations.

The idea of shutting the vehicle down while it's running is an incredibly stupid one. I'm amazed lenders would subject themselves to that kind of liability. Can you imagine the amount of money they'd be sued for if a vehicle got turned off while driving on the highway and plowed into other vehicles?? They'd get sued by the borrower (the driver), but they'd also get sued by every other vehicle on the road, not to mention criminal charges of reckless endangerment. Who in the world would authorize such a thing? Idiots.

Guess they'll learn their lesson soon enough, there's going to be some massive suit and they'll change the process in a hurry.

So if you are a day or two late with the house payment you have no problem being put out on the street and being homeless?

 

[glenn1]

One woman in Nevada said her car was shut down while she was driving on the freeway.

Yep, because when I want a trustworthy witness with no ulterior motives I'll take the word of someone who just got their car disabled because they were behind on their payments. Absolutely no possible way that such a person would ever slightly embellish a story like this.

 

[bshole]

Yep, because when I want a trustworthy witness with no ulterior motives I'll take the word of someone who just got their car disabled because they were behind on their payments. Absolutely no possible way that such a person would ever slightly embellish a story like this.

LoL....

 

[glenn1]

So if you are a day or two late with the house payment you have no problem being put out on the street and being homeless?

Yes, but unfortunately it's illegal for landlords to do that and thus get stuck with non-paying tenants for months if not years before they're able to evict them. It's not like making it illegal would suddenly reform all the horrible/evil landlords out there anyway.

 

[cabri]

Buried in one of the linked articles

The car stalled, and when she tried to restart it, the starter was blocked

Some of the devices beep at customers just before payments are due, and whistle when they’re a day away from being shut off.

It is not like one is blind sided by getin gup in the morning and SURPRISE, no transportation

That means they can't put a person in harm's way. To Swearingen, that would mean "turning off a car in a bad neighborhood, or for a single female at night."

And how will a system know who the driver is and what is the definition of a bad neighborhood. If the vehicle owner lives in the neighborhood or chooses to go there, then they have to take the responsibility of such.

 

[Jaskalas]

All for this with one major exception: cannot shut off the car when running. Just disabling the starter should suffice. No one gets put in harm's way then.

That's a great idea. Let's kill people from exposure by stranding them.

 

[nageov3t]

sure, if a guy owes you money, a surefire way of recouping the money owed is causing him to lose his job because he can't get to work.

seems like a terrible idea, but it makes me question why they don't put GPS's in cars to track them down if it comes down to repo'ing them.

 

[PokerGuy]

So if you are a day or two late with the house payment you have no problem being put out on the street and being homeless?

No, if that's what the buyer agreed to, I have no problem with those terms being enforced. The terms are that you get the vehicle as long as you pay for it. If you don't pay, you should not get the use the vehicle.

The only problem I have is with the idea that they would disable the vehicle while in use. That creates danger. Simply refusing to start as of a certain day (especially if you get warning that the day is approaching) is perfectly reasonable.

 

[JulesMaximus]

What's next? You can report the car stolen if someone doesn't make their payments?

 

[mpo]

Everything that is old is new again, just a little more high tech...

Auto Dealer Has an Offer for Drivers With Bad Credit, but There's a Catch
By ROBYN MEREDITH
Published: August 30, 1999

A car dealer here is making a big push into leasing used cars to poor people with no credit or bad credit. But the deals come with streetwise terms: miss a payment and the car won't start.

The dealer, Mel Farr, the former Detroit Lions football player, leases the cars to anyone who can come up with at least $50 a week. The catch is that a payment is due every Friday and customers must pay up weekly to get a code they must punch into a device attached to the dashboard. Otherwise, the car stays parked.

 

[cabri]

sure, if a guy owes you money, a surefire way of recouping the money owed is causing him to lose his job because he can't get to work.

seems like a terrible idea, but it makes me question why they don't put GPS's in cars to track them down if it comes down to repo'ing them.

GPS transmitters cost $$.
Many of these cutoff units come with transmitters with them to aid in locating the vehicle.

Repo people do not like to be sent out on a wild goose chase; they are paid by the hook, not the hour.

 

[highland145]

What's next? You can report the car stolen if someone doesn't make their payments?

I like this idea.



How many of you have a vested interest in a business that gives credit?

but it makes me question why they don't put GPS's in cars to track them down if it comes down to repo'ing them.

Some do.

Talked with a "buy here, pay here" guy 10+ years ago when he started using them. His past due rate went from 20%+ to under 5%.

Why can't the customer get some jack leg mechanic to take it off?

 

[WHAMPOM]

sure, if a guy owes you money, a surefire way of recouping the money owed is causing him to lose his job because he can't get to work.

seems like a terrible idea, but it makes me question why they don't put GPS's in cars to track them down if it comes down to repo'ing them.

Law says you cannot repo for a late payment. I think ours is ninety days, three payments behind. Only add a late payment fee.

 

[smackababy]

sure, if a guy owes you money, a surefire way of recouping the money owed is causing him to lose his job because he can't get to work.

seems like a terrible idea, but it makes me question why they don't put GPS's in cars to track them down if it comes down to repo'ing them.

Rather than shut off on the day after payment is due, just do like credit card companies. If it is paid before say 30 days, you just get charged a late fee. If after a grace period, payment (or, at least, contact) hasn't been made by the debtor, then the lender can issue the shut off.

 

[highland145]

Law says you cannot repo for a late payment. I think ours is ninety days, three payments behind. Only add a late payment fee.

YMMV. Once we've sent a notice of default, it can be picked up anytime it's past due but we never did unless it was 2 months.

I do not miss that at my old job.

 

[Vic]

This only prevents the vehicle from starting. It will not shut off one that is already running. And the borrower has to be 30+ days past due, not just 1 or 2 days late.

Edit : also, these terms have to built into the loan contract. Don't like it, don't sign.

 

[Raizinman]

The cost of such a device and labor to install would only be beneficial to higher end vehicles, not a 2005 Chrysler Vans. Not to mention, it really would not take much effort to disable and or remove this type of device in just a few minutes.

 

[Sinsear]

I don't have a problem with this.

Pay your bills