Thursday, April 23, 2009

Lenders can shut down cars of delinquent borrowers.

AOL Autos has a good article about a new piece of technology that allows car dealers or lenders to remotely disable a vehicle if the borrower misses a payment. The devices, which are apparently required by a growing number of subprime auto lenders, will alert the driver with a concert of tones and flashing indicators a couple of days before a payment is due. Then, a couple of days after the deadline, if no payment is made, the power will be completely cut. The devices also contain GPS so that the lender can quickly locate and retrieve its collateral.


Michael D. Wong said...

I hope that the device will only cut power when the automobile is shut off or else this could potentially be very dangerous. Could you imagine a car losing all power without any warning on the highway.

Michael W. Huseman said...

That is a good incentive to pay your bills on time.

Just kidding. There must be some type of warning period which would allow you to pull over.

Peter C. Bastianen said...

Pay or die.