Auto Finance Company Uses GPS to Spy

slfisher 0 775 Views

The Maine State Bureau of Consumer Credit Protection reported today that it has received a query from an unnamed out-of-state finance company about placing Global Positioning System units into vehicles it finances or that its customers used as collateral, according to an in the Bangor Daily News.

Such GPSes were not intended to help the company repossess the vehicle more easily or to track it in case of theft, but to ensure that the person was working by analyzing the person's traffic pattern, said bureau of consumer credit protection superintendent Will Lund, according to the article.

Worse, Lund said he could not find any authority of his office to block the use of such devices. Maine Attorney General Janet Mills also expressed concern that, once collected, the data could be used in other ways.

Privacy issues are increasingly a concern with GPS units and automobiles, according to an article yesterday in the New York Times. Particularly at issue is whether police attaching a GPS unit to a car under suspicion violates the Fourth Amendment law against unreasonable search and seizure, with different appellate courts issuing different rulings on its legality.

The Electronic Frontier Foundation and the American Civil Liberties Union also filed a brief in the most recent case, which "argued that unsupervised use of such tactics would open the door for police to abuse their power and continuously track anyone's physical location for any reason, without ever having to go to a judge to prove the surveillance is justified."

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Update and practical guidance (brief)

Since this thread was started, the law has shifted so that location tracking is no longer treated the same as it was in 2010. The U.S. Supreme Court has ruled that attaching a GPS device to a vehicle is a Fourth Amendment “search” when done by the government (United States v. Jones), and later ruled that long-term location records held by third parties (cell-site records) generally require a warrant (Carpenter v. United States). (supreme.justia.com)

Those rulings limit government surveillance but do not by themselves ban private trackers. State laws vary widely: many states make nonconsensual placement or use of tracking devices a crime or fold it into stalking statutes, while others allow tracking of collateral when a borrower consents in writing. Industry practices are also under scrutiny — lawmakers have pressed automakers and data brokers about sharing vehicle location data. (ncsl.org)

Practical steps for anyone worried a finance company has or will install a tracker:

  • Read the contract for any explicit tracking/telematics clause and insist on a written explanation of what is collected, who sees it, how long it is kept, and how to get it deleted upon payoff.
  • If a device is installed, get written consent documentation and ask for device removal or a certified safety inspection on payoff.
  • Do not attempt to tamper with or remove a starter‑interrupt or “kill” device yourself — that can be dangerous and could violate the contract; have a qualified mechanic or the lender handle removal.
  • If the lender refuses disclosure or removal, file a complaint with your state attorney general and with the CFPB (the Bureau has taken enforcement actions related to repossessions and servicing). (consumerfinance.gov)

As noted, privacy risks are real; as pointed out, tracking can produce discrimination against people who do not drive; and as observed, repossession tech exists — the best defense is clear contract language, written consent, and prompt use of state or federal consumer‑protection channels if a lender oversteps.

Member Avatar for Agilemind
Agilemind 0 Posting Whiz in Training

The biggest problem this could lead to is discrimination against people who use public transport to commute to work or work from home.

The rules about GPS use need to be clearly defined and unfortunately the courts are much slower than the technology development. My own opinion is that as long as the person is informed of the GPS and exactly who has access to the data it is acceptable.

Member Avatar for slfisher
slfisher 0 Posting Whiz

oh, good point, I hadn't even thought of the public transit aspect.

Member Avatar for carp_fishing
carp_fishing 0 Newbie Poster

Thanks for sharing this concept.

Member Avatar for Momerath
Momerath 1,327 Nearly a Senior Poster

Car dealers in my area use a killswitch system. If you are over 1 month late on payments your car will fail to start until you are current. This is used by the 'we finance anyone' dealers.

Member Avatar for happygeek
happygeek 2,411 Most Valuable Poster

Now that's kinda cool. Unless you are the one behind on payments, in which case technology really sucks :)

Member Avatar for rubberman
rubberman 1,355 Nearly a Posting Virtuoso

This is just such an egregious invasion of privacy that I am (almost) speechless... It should be as illegal and unconstitutional as it is unpalatable.

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