Welcome to The Times in Plain English   Click to listen highlighted text! Welcome to The Times in Plain English

My Car Won’t Start – I Must Owe Money

September 28, 2014
Plain English Version


Lenders and cars1

Auto dealers are making more loans to buyers with poor credit records. The lenders who make the loans resell them into securities’ markets. It is the same way mortgages were sold before the housing market fell apart.

There is another reason why more loans are being made. It is all about the new technology. In the past, “repo men” used to hunt down the borrowers who fell behind on their loan payments. They had to find the auto, and then they had to hook it up to the tow truck.

That is now changing. When buyers with poor credit buy a car, something new happens. The auto dealer, working with the lender, installs a device in the car. When the buyer falls behind on his payments, he may find his car will not start.

That is because a collection agent can electronically disable the car. And the agent can do it from his smart phone while sitting on the porch.

You may be at a store, or getting ready to drive to work, or picking up the kids and the car won’t start.  It will not start until you have made a deal for a payment to the collection agency. About 35 percent of loans to credit-risky buyers come with the devices installed. That number is going up.

People are working on ways to disable the device. Device makers are working on ways to stop them. Most people realize they have no choice but to pay if they want to use their car.

There are stories about cars not starting when the owners are one day behind in payment. Or stopping in the middle of the road.

Collection agencies say they wait thirty days and cannot disable a car while it is in motion. No matter what, it is becoming easier for lenders to make borrowers pay up.

Source: The New York Times September 24, 2014

Print Friendly

In Brief

Slow Down on that Heartburn Drug

A new study adds to the findings that taking heartburn drugs creates risks.

The study says that some drugs can lead to a heart...

New Ways to Think About Treating ADHD

New studies show many people with ADHD are drawn to new and exciting experiences. They can be very impatient and restless with routine activities.


Sepsis: A Killer You Want to Know More About

Sepsis is not a disease like cancer. It is a reaction your body may have when it fights infection. A doctor explained, “Your body...

Freezing, Thawing, Refreezing: What are the Rules?

You can save yourself a lot of trouble and possible illness. Follow these rules.


  • dictionary
  • English Dictionary

Double click on any word on the page or type a word:

Powered by DictionaryBox.com
Click to listen highlighted text!