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car electronically disabled when payment is late

Monday, September 29, 2014 - Posted by Philip Harvey

In Nevada, car dealers are fitting cars with electronic GPS units that can shut down a car on command. It is the harshness in which these are being utilised which is under fire. Under Nevada State Law, a vehicle cannot be repossessed where the loan is 30 days or less in arrears.

A Las Vegas women has had her vehicle disabled on several occasions. Not reading the Contract when obtaining the loan for the car, she was unaware that the Contract permitted that the car be automatically disabled if payment was more than 3 days late. The women has never let the late repayments reach the 30 day milestone.

Legal Aid in Nevada have filed a class action arguing that by denying the women use of her car, the finance company is essentially repossessing the vehicle in violation of Nevada State Law as the account was never older than 30 days in arrears.

The finance company whilst not responding to the class action made a general comment that without these devices, people with credit problem might not be able to get a car loan.

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