Subprime lenders can remotely disable vehicles when payments aren't made

By Shawn Knight
Sep 25, 2014
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  1. We've all been there a time or two. You hop in your vehicle to start your morning commute to work or to drop the kids off at school and low and behold, the car won't start and you're all of...

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  2. RustyTech

    RustyTech TS Guru Posts: 820   +390

    "...the customer shouldn’t be tempted to miss a payment..."

    Shawn, I don't believe there's any "tempting" going on when a borrower misses a payment. It's probably because they've having a hard time making ends meet.

    This will most definitely be in litigation sooner than later; if not by the borrower then by the general public who's having to be around a car that could be disable willy-nilly a potentially causing a major incident.
  3. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,352   +1,945

    Just yank the kill switch out and toss it in the trash, better yet toss it on the creditors doorstep.
    stewi0001 likes this.
  4. Just wait untill this gets a maasive Data breach, Hacked and caiusing acciedent (I hope no one dies) and then some one might care about this..... this is down right dumb.... playing with peoples lives for money.
    erickmendes likes this.
  5. Ooh, great idea. Let's prevent the lender from driving their car to work. Then they can't make even more payments. /sarcasm.

    If these have GPS tracking, then why are they being stopped at locations other than parking lots? This has lawsuit painted all over it. I should start a company that removes this crap.
  6. p51d007

    p51d007 TS Evangelist Posts: 864   +355

    Just like the housing crash, partly spurred on by the sub-prime mortgage problem, this is no different.
    People NOT QUALIFIED to have a loan, due to a POOR CREDIT score, are being made eligible. Because of
    bad credit, no credit history, poverty or whatever, they are IRRESPONSIBLE. They have no track record of purchasing something on credit and paying it back in a timely fashion. As with anything else, they "fluff off" their rent, utilities, doctors bill or whatever else they have, when they don't have the money, and they do it again with the auto loan, but the company has a way to keep them from using the vehicle without paying it. "Oh, I'm only a day or two late", EXACTLY! YOU are LATE! The DUE date is when it is due, not when you think about getting around to paying it!
    All this will do, is make lenders look like the "bad guys" just like with the housing market. These people DO NOT qualify for a loan! Period! End of discussion!
  7. Win7Dev

    Win7Dev TS Evangelist Posts: 537   +152

    If you have bad credit, you should have two options. 1. Pay in cash for the purchase. 2. Don't buy it.

    I see nothing wrong with disabling cars that aren't paid for.
    p51d007 likes this.
  8. amstech

    amstech TechSpot Enthusiast Posts: 1,441   +594

    If your having trouble making ends meet you shouldn't be driving a 20K+ car. My old man is a car dealer and there are plenty of cars in the 7K-12K range that are reliable, solid cars. People in this weak society run on perception and image so its important to have a shiny new car.
    I was brought up to save and never borrow unless you ABSOLUTELY have to.
    p51d007 likes this.
  9. seefizzle

    seefizzle TS Addict Posts: 275   +138

    It looks like punching that guy in the face would feel really great.
  10. "a remote kill switch"
    Thats the way they want it to be described, you want to bet the reality is different?
    It's a remote authorization switch, you turn the key, the car will ask a remote server if its starts or not today.
    remove the doodad and walk to work.
  11. erickmendes

    erickmendes TS Enthusiast Posts: 37

    You are providing people with a car that may not work because of a kill switch that's not part of the car mechanic. You altered the car that way. What if you have a situation when you need the car (a thief is comming after you?) and the kill switch is on? Let's say you hadn't missed the payment date, but the kill switch system bugged and every car in this lenders server is dead, who is going to be accounted for this mistake?

    When you make such an alteration on a car you lend, you are partly responsible for the safety of your customer, because the car maker and the car mechanic was the responsible till then, now you got part of this responsability to you too.
  12. This is outrageous. They should have to go through appropriate legal channels not just turn it off at their whim. Maybe the health insurance companies will do the same with pacemakers.....miss you insurance premium, turn it off.
  13. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,730   +1,094

    I'm really surprised (in fact I don't believe it) that a missed payment would result in any sort of repercussion other than maybe a small late fee. Being a few days late is perfectly normal. Credit agencies don't even care until you're 90 days late, and most companies don't turn accounts over to collections unless you're 60 or 90 days late either. I've missed dozens of payments in my life... often completely forgetting to pay bills altogether. the missed amount just shows up next month and you get to pay double. no body wastes time on people 1 month behind.

    Notice the guy doing the cutting off of the car is the 'head of collections' (he doesn't work at the credit union) he's not waiting around for the 15th of the month to pass so he can cut off cars. he's getting the seriously delinquent people to deal with probably only after a number of payments are missed.
  14. Frank Barnett

    Frank Barnett TS Rookie Posts: 61   +6

    I Bet with the interest rates they charge that 20k car is cheaper than a 7 k car
  15. This technology has been around for about 8 years, Credit Acceptance started installing the devices in cars about 2006.
  16. I guess Lizard Lick towing will be going out of business...
  17. A hacker sends out the "X765Y" master key command and stops all 2 million cars in their tracks - at once. Interesting...
  18. I was brought up to save money and only borrow when I don't need to... that's how you get the best rates and leave your money invested making a higher rate of return than the rate on what you borrowed. Sounds like you were brought up wrong.
    p51d007 likes this.
  19. That is awesome!
  20. The manufacturer and lenders who use this device may be setting themselves up for a major lawsuit. The device should have been designed so that if the "kill" signal is sent it would prevent the vehicle from starting, not kill the engine while it is running. Simple programming. As it is or at least appears to be like in the case with the woman in Las Vegas, it is beyond negligent and could be construed as criminal for a lender to "kill" the vehicle while it is in operation esp. if vehicular homicide resulted.
  21. These are $7k - $12k cars, you apparently don't know as much about the industry as you claim you do. These lots are rolling vehicles out onto their lots and charge 145% of book value. They run the cars through the shop but don't make the repairs. Many of these dealers then require the customer to purchase an aftermarket service contract that the dealer later "smacks" to pay for repairs that they knew were needed when they sold the car.
  22. Here is what I see happening. Someone's going to report their car stolen. And then they won't make a payment because the car is stolen. And then some shady dealer is going to cut off the ignition while the car is in the middle of the highway, going at 60 mph or higher. And then there is going to be a multiple car-crash in which several persons in various cars will die.
  23. A lender committing breach of the peace is committing a crime.
    See the much better Slashdot coverage, which details the situations people have found themselves in. Preventing someone from taking their child to the ER, or stopping their car in busy traffic, both of which happened, is illegal for a lender.
  24. Ah yes, Repo Men, good movie. Seems like we're definitely headed in that direction.
  25. Chevrolet is facing lawsuits because people died and been injured when the ignition switch unexpectedly turned cars off . Death sentence because you were a few days late on your car note?
    Which ever judge made this call, is either ignorant or on the take. This is a lazy, dangerous way to save money, by cutting out the repo man.

    @ Disabled one while shopping at walmart? I'm sure the mobile app could show if the car was moving on his super fast 4g network phone.
    I'm just saying.

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