Can The Bank Disable Your Car If You’re Behind Payments In Minnesota?

Here's a scary thought. Who hasn't been late for a car payment? It happens. Sometimes you just forget. There's a grace period in most situations, but what happens if your payment is really behind? Of course, your vehicle could be repossessed, but with modern technology could a financial institution disable your vehicle to get you to pay?

Vehicles could have starter interrupt devices by lenders.

Newer vehicles have GPS trackers and are highly computerized. In some cases across the United States, loan and lease agreements actually can have wording that gives them the right to disable your vehicle by installing a starter interrupt device. This would be done by preventing the vehicle from starting. Once the payments are made, it will start.

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If it is used, it's mostly for high-risk loans for people with poor credit. It would legally need to be in writing on the agreement.

Minnesota has strong consumer protection laws.

Minnesota has better consumer protections than many other states. It's unlikely a lender would use the technology, and if they didn't have it in the written agreement they would be violating the law.

An alternate form of repossession.

These devices could be used as an alternative to repossessing a vehicle. It may be enough to prompt a borrower to make their payments.

In any case, Minnesota Repossession Laws give you the right to cure before they repossess your vehicle. The lender needs to notify the borrower and give them 10 days before they can take action, like disabling your vehicle.