Have you created a ShazzleMail account on your smartphone? This is a required first step.

Yes No

Free Encrypted Email

4500

Federal Agency Begins Inquiry Into Auto Lenders’ Use of GPS Tracking

February 23, 2017

Auto loans to Americans with poor credit have been booming, and many finance companies, credit unions and auto dealers are using technologies to track the location of borrowers’ vehicles in case they need to repossess them.
Such surveillance, lenders say, allows them to extend loans to more low-income Americans, knowing that they can easily locate the car. Lenders are also installing devices that enable them to remotely disable a car’s ignition after a borrower misses a payment.

Now, federal regulators are investigating whether these devices unfairly violate a borrower’s privacy.

The auto lender Credit Acceptance Corp. said this month in a securities filing that it had received a civil investigative demand from the Federal Trade Commission asking for its “policies, practices and procedures” related to so-called GPS starter interrupter devices, which are used to disable an ignition.

Industry lawyers say the action is part of a broader inquiry by the agency into tracking technologies used in the subprime auto lending market.

The regulatory scrutiny over the GPS starter interrupter devices comes as cracks are starting to appear in the auto loan market. The percentage of auto loans that were at least 90 days delinquent increased to 3.8 percent in the fourth quarter from 3.6 percent in the third quarter, according to the Federal Reserve Bank of New York

The auto finance industry says that without the devices, many low-income Americans would not be able to buy cars that they need to get to work.

But some find it unsettling that the technology gives lenders so much control over borrowers.

“They don’t need to know what we are doing — when we go out to eat, when we go on vacation,” said Elias Sanchez, a forklift operator in Austin, Texas. “We want our privacy.” His auto dealer didn’t tell him that a GPS tracking device had been installed in his 2005 Ford SUV, he said.

Tags: , , ,

Introducing ShazzleMail Email and How it Works

Privacy is your Fundamental Human Right.

Our Daily Blog
telegram-3m
Your Privacy Is Our Business
April 30, 2019

Let us reassure you: You’re worried only because you don’t understand anything about anything. ...

Read more
pr
Coffee with Privacy Pros: Three Constants of Privacy
April 23, 2019

A look behind the career and privacy theology of the law-lovin’ CPO of Uber, Ruby Zefo Jared Cose...

Read more
privacy-coins-and-bitcoin-dominance-guide
We’ve Stopped Talking And Searching About Privacy
April 15, 2019

Kalev Leetaru Contributor AI & Big Data I write about the broad intersection of data and soci...

Read more
private
Rebiton Allows You to Buy Bitcoin and Keep Your Privacy
April 8, 2019

by Kai Sedgwick Purchasing bitcoin ought to be quick and easy, but over the years, encroaching KY...

Read more
20190323_fbd001
Big tech faces competition and privacy concerns in Brussels
March 25, 2019

And the sector may be the better for it Print edition | Briefing Mar 23rd 2019 | PARIS Around 19 ...

Read more