Lenders Monitor, Control Subprime Nexum Via Connected Vehicle Tech

Cameron Aubernon
by Cameron Aubernon
lenders monitor control subprime nexum via connected vehicle tech

In a perverse nexus where connected-vehicle technology, privacy and subprime lending intersect, consumers who fall behind on so much as a single payment, or even stray outside a given teritory, may find their vehicles shutdown by their lender from a digital panopticon.

The New York Times reports that some subprime borrowers — a group that made up a quarter of all new car loans in 2013 — must agree to have a GPS-equipped starter interrupt device installed in the vehicle of a given borrower’s choosing. In turn, the lender can keep track of where its property — and the borrower — is at all times, and with a single tap or click, cut all power to the vehicle if a borrower falls behind on payments.

However, some lenders are choosing to act only days after a missed payment — instead of the 30-day grace period before a borrower is considered in-default — no matter where exactly the vehicle is at the moment of shutdown. This has led to situations where a borrower has been stranded in a bad neighborhood, at the stop light, or, in one case, on the freeway.

Further, some loan agreements include so-called “geo-fences”: a maximum range a subprime borrower can travel before the lender, again, shuts down a vehicle and sends a tow truck to recover the asset. The claim is that a borrower who travels further than the fence allows — such as to their place of employment — may not be able to make good on their payments.

The consequences of using the devices have drawn considerable attention from both consumer lawyers and state regulators. The former argue starter interrupt systems give a lender all the more reason to remotely repossess a vehicle if even a payment is missed by a day, violating state laws on the matter as a result. The latter, in turn, is examining the potential safety hazards for the borrower and other motorists if the devices become defective.

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  • Anti121hero Anti121hero on Sep 27, 2014

    You probably pulled this picture by Google imaging isis but this is an incredible album by an awesome band. Heavy sludgy stuff.

    • See 3 previous
    • Petezeiss Petezeiss on Sep 27, 2014

      @Cameron Aubernon I actually meant there *were* no vocals for the duration of my endurance. But as a rabid fan of Stars of the Lid, I see that as a plus.

  • 3Deuce27 3Deuce27 on Sep 29, 2014

    Pay Cash! Financing any vehicle is very expensive unless it can be used as a business deduction/writeoff. On a new and newer vehicle, financing and depreciation are a double negative inflating the cost of vehicle ownership. Throwing away hard earned cash at inflated costs for new or shiner paint, is just stupid. Take a few paychecks and buy a beater and drive it until you can save up for a better vehicle, and then use the saved money to buy a house and keep driving the beater. Your ego and sense of self-worth won't allow that... grow up or consign yourself to financial purgatory.

  • Inside Looking Out This is actually the answer to the question I asked not that long ago.
  • Inside Looking Out Regarding "narrow windows" - the trend is that windows will eventually be replaced by big OLED screens displaying some exotic place or may even other planet.
  • Robert I have had 4th gen 1996 model for many years and enjoy driving as much now as when I first purchased it - has 190 hp variant with just the right amount of power for most all driving situations!
  • ToolGuy Meanwhile in Germany...
  • Donald More stuff to break god I love having a nanny in my truck... find a good tuner and you can remove most of the stupid stuff they add like this and auto park when the doors open stupid stuff like that