Lenders Can Deactivate Cars After Missing Payments

Credit unions and loan companies now use a starter interrupt device. This is a hardware that connects with their customer's vehicle. The device can detect when a loan is being issued to someone with poor credit. If a customer fails to make payments, it deactivates his vehicle. An employee of the loan company can activate the starter interrupt. It works over a cell signal and can be activated from anywhere. You can activate it from your office computer, or by using an app on a smartphone. Dealers and lenders are increasingly installing GPS trackers and starter interrupt devices in their cars. The GPS function allows lenders to pinpoint the exact location of the car.
Lionel M. Vead Jr, an employee of First Castle Federal Credit Union says the company makes numerous attempts to contact customers by phone or in person. The vehicle will be removed from the borrower's residence or workplace if the lender does not respond within 30 days. Lenders may deactivate the vehicle when a borrower is more than one day late with a payment.
Two million vehicles have a starter interrupter installed in the United States. Borrowers are concerned about the level of control lenders have.