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Showing posts with label lending. Show all posts
Showing posts with label lending. Show all posts

Friday, May 02, 2008

You can run, but you can't hide!

I've never heard of this trend before, but according to USA Today, subprime borrowers buying a car are required to have a little box mounted under the car's dashboard that forces them to make payments on time.

A light on the box flashes when payments are due, and if the payment is not made on time, the box starts to beep until a four-digit code is punched in to reset the system. The only way to get this code is by making the payment, and if that payment is not made on time, the car won't start.

Apparently, customers hate them, while lenders love the little boxes because it lowers default rates.

Sekurus, the company who sells these boxes, has sold over 250,000 at $250, and its competitors are looking at ways to make these payment enforcement devices more efficient.

One company is selling wireless systems that sends text messages to the car, and another one is adding GPS functionality to the device to make it easy for lenders to repossess the car.'

I know times are tough for everyone, but is this really necessary?

Allan W Janssen is the author of the book The Plain Truth About God (What the mainstream religions don't want you to know!) and is available at the web site www.God-101.com

Visit the blog "Perspective" at http://Allans-Perspective.blogspot.com