Lenders Monitor, Control Subprime Nexum Via Connected Vehicle Tech

Cameron Aubernon
by Cameron Aubernon

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.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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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.

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    • 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.

  • 3SpeedAutomatic Once e-mail was adopted by my former employer, we were coached about malice software as early as the 90's. We called it "worms" back then.They were separating the computers that ran the power plants from the rest of the system in the early 00's. One plant supervisor loaded vacation pictures from a thumb drive on his work PC. His PC was immediately isolated and the supervisor in question was made an example of via a disciplinary notice. Word spread quickly!!Last I heard, they still had their own data center!! Cloud Computing, what's that?!?! 🚗🚗🚗
  • 3SpeedAutomatic At this time, GM had a "Me Too" attitude towards engine development:[list][*]the Euro luxury brands have diesels, so can we via an Olds V8[/*][*]variable value timing, welcome to the brave new world of Cadillac V8-6-4[/*][*]an aluminum block V8 engine via the HT4100, the go-go 80's[/*][*]double overhead cams, 4 valves per cylinder, no sweat, just like the Asian brands via NorthStar. [/*][/list]When you mindset is iron block and cast iron heads, life if easy. However, each time, GM failed to understand the nuances; intricate differences; and technical difficulty in each new engine program. Each time, GM came away with egg on its face and its reputation in ruin.If you look today, the engines in most Cadillacs are the same as in many Chevrolets. 🚗🚗🚗
  • 3-On-The-Tree I don’t think Toyotas going down.
  • ToolGuy Random thoughts (bulleted list because it should work on this page):• Carlos Tavares is a very smart individual.• I get the sense that the western hemisphere portion of Stellantis was even more messed up than he originally believed (I have no data), which is why the plan (old plan, original plan) has taken longer than expected (longer than I expected).• All the OEMs who have taken a serious look at what is happening with EVs in China have had to take a step back and reassess (oversimplification: they were thinking mostly business-as-usual with some tweaks here and there, and now realize they have bigger issues, much bigger, really big).• You (dear TTAC reader) aren't ready to hear this yet, but the EV thing is a tsunami (the thing has already done the thing, just hasn't reached you yet). I hesitate to even tell you, but it is the truth.
  • ToolGuy ¶ I have kicked around doing an engine rebuild at some point (I never have on an automobile); right now my interest level in that is pretty low, say 2/5.¶ It could be interesting to do an engine swap at some point (also haven't done that), call that 2/5 as well.¶ Building a kit car would be interesting but a big commitment, let's say 1/5 realistically.¶ Frame-up restoration, very little interest, 1/5.¶ I have repainted a vehicle (down to bare metal) and that was interesting/engaging (didn't have the right facilities, but made it work, sort of lol).¶ Taking a vehicle which I like where the ICE has given out and converting it to EV sounds engaging and appealing. Would not do it anytime soon, maybe 3 to 5 years out. Current interest level 4/5.¶ Building my own car (from scratch) would have some significant hurdles. Unless I started my own car company, which might involve other hurdles. 😉