You have probably already heard of starter interrupt devices on cars to punish and prevent people from driving their cars while intoxicated but get a load of this! Several loan companies and credit unions have started using a starter interrupt device which is described as hardware that connects to their customer’s vehicle. The device then detects when a loan is issued to a customer with bad credit and deactivates the vehicle if a customer misses a payment. The starter interrupt can operate over a cellular signal, and can be activated by an employee of the loan company. This is very handy since it can be activated or deactivated very easily from an office computer or even through a smartphone application.
This new device was created in an effort to minimize delinquencies and protect lender’s assets. Many lenders and dealers are increasingly inserting starter interrupt devices and / or GPS trackers in all their cars in an attempt to discourage late payments. What’s even more interesting is the GPS function allows the lender to track the exact location of the car.
According to Lionel M. Vead Jr., an employee at First Castle Federal Credit Union, the company makes various attempts to reach customers by phone and in person. After 30 days with no response, the vehicle will be deactivated at the borrower’s home or workplace. Some lenders will even deactivate a vehicle if a borrower is even one day late in making a payment without hesitation. No negotiating that one!
Right now there are approximately two million vehicles in the United States with a starter interrupt device installed and this power and control that lenders now have can be very disturbing to borrowers who may happen to fall behind in their payments.
Moving isn’t the answer to everything but it may give you the fresh start you need. After you find a good moving company then find a reputable car shipping service to move your car to your new start.