Many of the vehicles financed with subprime loans have a GPS device installed, and lenders have utilized the use of starter interrupt devices (“SIDs”). Lenders will require the SID to be installed as a condition of getting a vehicle loan. SIDs enable the auto lender to remotely disable the ignition system of a borrower’s car if the borrower defaults on their loan. In many instances, the SID is equipped with a global positioning system (“GPS”), the SID also communicates the location of the car to the lender to facilitate the repossession of the vehicle.
Understanding state specific guidelines regarding the collection of a convenience fee is important. In recent years, the FTC has focused on bringing a greater number of cases and obtaining stronger monetary and injunctive remedies against debt collectors that violate the law.
Changes in regulation have resulted in some confusion within the industry about authorizations for preauthorized ACH and debit card payments under Regulation E (Reg E) and NACHA regulations. Download this white paper today to read a detailed analysis of these requirements, citing several authoritative sources.