Miss a Payment? Good Luck Moving That Car

[Strictly Street]

This new technology is bringing auto loans — and Wall Street’s version of Big Brother — into the lives of people with credit scores battered by the financial downturn.

 

Auto loans to borrowers considered subprime, those with credit scores at or below 640, have spiked in the last five years. The jump has been driven in large part by the demand among investors for securities backed by the loans, which offer high returns at a time of low interest rates. Roughly 25 percent of all new auto loans made last year were subprime, and the volume of subprime auto loans reached more than $145 billion in the first three months of this year.

 

But before they can drive off the lot, many subprime borrowers like Ms. Bolender must have their car outfitted with a so-called starter interrupt device, which allows lenders to remotely disable the ignition. Using the GPS technology on the devices, the lenders can also track the cars’ location and movements.

 

 

Interesting use of technology.

More here: http://dealbook.nytimes.com/2014/09/24/miss-a-payment-good-luck-moving-that-car/?_php=true&_type=blogs&src=twr&_r=0

 

 

As the ignition devices proliferate, so have complaints from troubled borrowers, many of whom are finding that credit comes at a steep price to their privacy and, at times, their dignity, according to interviews with state and federal regulators, borrowers and consumer lawyers.

 

Some borrowers say their cars were disabled when they were only a few days behind on their payments, leaving them stranded in dangerous neighborhoods. 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.

 

[MidgetTodd]

Easy bypass

[Strictly Street]

Easy bypass

 

If you have a clue, sure. But for those that don't...

[vf1000ride]

This is why both of my vehicles are pre-blackbox.  I prefer that other people can't use my driving against me.  Just wait until the hackers break that network and turn everyones shit off at the same time.

[rawlins87]

12 valve. Three wires to run and no computer.

[magley64]

Build your own car, problem solved.

[Anden]

This has been around for a long time at the buy here pay here level. Worked with a fool that every other monday he couldn't leave for lunch because he didn't make his payment on friday. His payment was $350 biweekly.

Yeah thats a ton of money but his Pathfinder would have been paid for in two years. That is he had not lost his job.

[Gixxus Christ!]

So pay your bills. If I don't pay my electric bill, they shut it off. Yes the grace period is longer, but that's because my house is not mobile.

When people are facing repo they get desperate. They'll hide the car any way they can to avoid it getting hooked. This is a handy way to end - run that. You know your car payment, you know when it's due...so pay it on time like it says in the document you signed.

[smccrory]

So pay your bills. If I don't pay my electric bill, they shut it off. Yes the grace period is longer, but that's because my house is not mobile.

When people are facing repo they get desperate. They'll hide the car any way they can to avoid it getting hooked. This is a handy way to end - run that. You know your car payment, you know when it's due...so pay it on time like it says in the document you signed.

 

^^^ This ^^^

 

And I'm calling BS on being disabled while idling or on the highway unless the devices were programmed wrongly.  It's more likely the borrower was pissed and made up the story to create faux outrage.  Or the lender is engaged in unfair practices as defined by multiple regulations that will ultimately fine them back to the stone ages.

 

You see, loan losses are passed on as higher interest rates and tighter credit markets for everyone else.  It may seem undignified to put a device like this on a borrower's car, but the alternative is that they won't get a loan at all, which is why they'll willing to accept the stipulation.  Nobody owes subprime borrowers a car.

[Scruit]

the inability to drive a disabled car to school/doctor etc is not a valid complaint if the car was disabled in accordance with the agreed contract.  They would be unable to drive a repossessed car, no?

 

If the contract says 1 day late = disabled car then don't complain when you are a day late and they turn it off.

 

Disabling a car in traffic is clearly ridiculously dangerous and I'd like to see proof that it actually happened before getting annoyed.  If true, then that company should be fined and have to pay back any towing charge. 

 

 

Be careful what you wish for - Better to be disabled than repo'd.  Just like people who complain about tazer use - would you prefer they used bullets?

[Scruit]

Oh, and remember this story?

 

http://www.wired.com/2010/03/hacker-bricks-cars/

[bloodninja420]

 

 

You see, loan losses are passed on as higher interest rates and tighter credit markets for everyone else.  It may seem undignified to put a device like this on a borrower's car, but the alternative is that they won't get a loan at all, which is why they'll willing to accept the stipulation.  Nobody owes subprime borrowers a car.

 

Yes. It's the same thing when people complain about the "predatory" payday loan business. Sure 20%+ interest rates seem bad, until you realize the alternative to capping them is no credit at all.

 

It's pretty presumptuous for regulators to take options like this off the table for someone's own good. Give folks the choice and let them vote with their wallet.

[RCBS]

So this system is cellular based?  Would be a no-go in many areas where I'm at.

[3.504]

I've installed tons of these systems.

They've been out for years.

You can bypass them easily, but that voids contract and they repo your car. (It's also boarder line considered stolen at that point.)

The system only interrupts starter signal. So stalling your engine in traffic or any time while running is complete horse flop. They can disable anytime, but you won't be affected until you shut the car off yourself (it won't restart).

If you do find yourself stranded, not able to start the car, in a dangerous or unsafe place, or even if your just flat out not home, you can call a number, they'll temporarily turn it on, and you can go home. It's in the contract.

It's really not a big deal. The system is completely hidden from view. No one would know you have it.

The system also acts like a low jack incase your car is stolen, so not all bad.

[3.504]

I've installed tons of these systems.

They've been out for years.

You can bypass them easily, but that voids contract and they repo your car. (It's also boarder line considered stolen at that point.)

The system only interrupts starter signal. So stalling your engine in traffic or any time while running is complete horse flop. They can disable anytime, but you won't be affected until you shut the car off yourself (it won't restart).

If you do find yourself stranded, not able to start the car, in a dangerous or unsafe place, or even if your just flat out not home, you can call a number, they'll temporarily turn it on, and you can go home. It's in the contract.

It's really not a big deal. The system is completely hidden from view. No one would know you have it.

The system also acts like a low jack incase your car is stolen, so not all bad.

[2talltim]

Some guys I work with bought 4 wheelers with shit credit. They were lo jacked with GPS transmitters as per the loan agreement. One of them left their key turned on for a couple of days and killed the battery so the GPS signal was interupted. The bank sent collection agents to their door with in a couple of days to investigate. So i guess if owning crap you can't afford means giving up your privacy, more power to ya.

Edited September 26, 2014 by 2talltim

[magley64]

On star can completely disable your car on the fly, not just interrupt the starter.

[jporter12]

On star can completely disable your car on the fly, not just interrupt the starter.

 

Different system, different topic all together.

[3.504]

On star can completely disable your car on the fly, not just interrupt the starter.

If you think on star is scary, you should see some discussions about the proposed obdIII mandate.

Federal regulations are getting out of control. Next up is another crunch on CO2 emissions, and the only way to reduce those emissions is to reduce engine displacement. That's why there's been a hike in forced induction in recent years, the most obscene of which is a twin turbo v6 in a full size pickup. You can thank old Henry for that. Can't wait to see those trucks at 100k, abandoned because people can't afford Cvvt phasers and new turbos.

[oldschoolsdime92]

If you think on star is scary, you should see some discussions about the proposed obdIII mandate.

Federal regulations are getting out of control. Next up is another crunch on CO2 emissions, and the only way to reduce those emissions is to reduce engine displacement. That's why there's been a hike in forced induction in recent years, the most obscene of which is a twin turbo v6 in a full size pickup. You can thank old Henry for that. Can't wait to see those trucks at 100k, abandoned because people can't afford Cvvt phasers and new turbos.

 

 

I'm glad im not the only one who has thought this..^^