January 1, 2020 — Model Law

Recently some states have begun to consider legislation enabling the use of electronic repossession–from devices to track or immobilize financed and leased cars to payment “warning” sounds to harass owners. These principles, applicable to state or federal policymakers addressing aspects of electronic repossession, provide the robust protections necessary for consumers and also address public safety and privacy concerns.

Electronic repossession and collection efforts are increasingly used in auto finance. It is even possible that software and electronics that are now built into new cars at the time of manufacture could be used to perform these same collection activities. At the same time consumers’ access to their vehicles has never been more critical and electronic repossession may result in financial disruption and loss of access to employment, day care, schooling, medical care, and other essential services.