New Technology Remotely Disables Car Engines Of Customers Who Miss Loan Payments

VAN NUYS (CBSLA.com) — A new technology has left many automotive customers concerned about missing loan payments.

Officials said the technology is referred to as a starter-interrupt device that allows lenders to remotely disable the ignition of a borrower's car at any time if they miss a payment on their loan.

CBS2's Rachel Kim spoke with residents Thursday who shared negative reaction to the automotive concept.

For Calabasas resident Luis Alvarez, this new technology is not a feature that he would like to have included in the used car that his family is searching for.

"I don't think it's safe, and I don't think it's right," Alvarez said. "I don't think companies should be allowed to do that."

However, state and federal authorities are trying to figure out the regulation of this new technology.

"Every five seconds, the device is actually beeping at them, as they're taking the kids to school, all the way to work, it's informing them that they need to make their payment and contact their lender," said Executive Vice President of Lender Systems David Sailors.

Manufacturers said the device was created to help borrowers make timely payments and rebuild their credit.