Pay or Stay

[Honeykiss1974]

I found this article on a local news station's website! Has anyone else heard of this ?

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Pay or Stay
KAKE News

You get in your car, but it won't start. It might not be a mechanical problem. It could mean your car payment is overdue.

Macy Pearson loves the used car she just bought, but it will only start if she's made her car payment.

Nestled under her dash is a device called a Starter Interrupt System. If she doesn't pay, the device is set to disable her car so she can't drive. Macy's salesman insisted she have it, since she has no credit history.

Once Macy sends in her payment, she's given a code number. Then, she reaches for her remote and punches in the code.

At Family Motors, customers come in once a week to pay in person. Someone from the dealership then swipes an electronic device underneath the dash. That sends a signal to the computer that the account is paid and the car stays on the road.

John Hattan at Family Motors says, "We deal with the credit challenged customer. And it gives them the opportunity because we as a lender feel a little more secure that were going to stay in touch with the customer."

It may be good for dealers, but what about drivers? One consumer advocate says the devices could put customers at risk.

Jack Gillis at the Consumer Federation of America says, "You might be in a situation where you are in an unsafe position, and you need to get out of there quickly, and you can't do it."

The makers of the device say cars won't stop while in motion. They just won't start once they're turned off. And even then, drivers like Macy can call their salesman for an emergency code. (HK's commentary - what if you can't get in touch with him? I guess you're just AO ).

But critics say customers don't always leave the car lot with a better price, or better financing if they have the device.

Gillis says, "The only one who seems to benefit, are the dealers who are selling these products."

As for Macy, she's grateful. She's working hard to get a solid credit history started.

Manufacturers say they can make similar devices for televisions, computers and virtually anything else that has an on-off switch, and needs to be paid for.

[Conskeeted7]

A major car dealer in Detroit was sued because his device was shutting off cars while they were on and in traffic, which endangered the occupants. But this is a common practice at several larger used dealerships that take risky clients. However, the devices are not very sophisticated and can often be disassembled with ease.

[RedefinedDiva]

It sounds good in theory. I mean, if I was a car dealer, bank, lender, etc., I would want to hook the devices in any car that I sell. Why should people have the luxury of riding around if they can't pay it?

On one hand, it's good because some people never have the intention to pay for their cars. They deserve for their car to be shut down. On the other, maybe he people need to car to get to work so that they can pay the note. It's like a catch-22 for them.

[Choo-ChooAKA]

On the surface, this sounds like a useful device that may prompt more dealerships to take a chance on risky clientele. However, I think that if consumers must have this device, they should recieve a better interest rate and lowered insurance costs (this could also be useful if the car is stolen and financeers require the financee to carry insurance, which would be another reason to have the car turned off). If consumers receive neither of these benefits, then, once again, the poor are being even further disadvantaged. There are many ways that people with money (yes, I know this seems like an oxymoron), or with access to money, who are just plain irresponsible and earn themselves bad credit, can get around having a system like this installed in their cars.

I'm leery of any system that can be unfairly applied and I think this will probably disproportionately target the poor and/or underpriveleged (i.e. many struggling Black people).

[Honeykiss1974]

Or to break it down even further, what if the mail is just plain ole late getting to the dealer/bank?