GPS Tracking & Starter Interrupt Devices: Statutory Privacy Limits & Lender Disclosure Rules

Many high-risk automotive title lenders install Payment Assurance Systems (PAS), incorporating GPS tracking units and starter interrupt devices into collateral vehicles.

1. How Starter Interrupt Devices Operate

Starter interrupt technology allows lenders to electronically disable a vehicle's ignition starter relay if a borrower fails to make scheduled monthly payments:

• Payment Warning Reminders: Devices typically emit an audible chime 24 to 48 hours prior to a scheduled due date.
• Safety Disabling Constraints: Devices CANNOT disable an engine while the vehicle is currently operating or in motion. Disabling only prevents restarting the ignition after the vehicle is safely turned off.
• Emergency Override Codes: State laws frequently mandate that lenders provide at least one 24-hour emergency override code to allow vehicle operation during medical emergencies.

2. State Statutory Disclosure Mandates

States including California (Civil Code § 2983.37) and Nevada strictly mandate that lenders provide conspicuous written disclosures and obtain written consumer consent prior to installing GPS or starter interrupt hardware.