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In urgent need of some quick cash, you’re considering taking out a title loan. Having heard the main things you need to get one are a solid income and a car title in your name to offer as security, the idea is appealing.1 But what if the lender insists on fitting your vehicle with a Global Positioning System (GPS) tracking device, in case you default on the loan? Does the idea still sound good? Here’s what you need to know about title loans and GPS tracking devices.
What Is a Title Loan?
Title loans are loans that leverage your equity in an automobile as collateral. The funds from a car title loan can be used to cover any number of personal or household expenses. To be eligible for a vehicle title loan you must be at least 18 years of age and have the title to a qualifying vehicle in your name. You must also reside in the state in which you’re seeking to borrow, and have a reliable source of income – whether from employment, Social Security, disability benefits, alimony or another consistent stream.1
The amount you can borrow depends on your income and how much the car you’re using is worth.1 The vehicle’s value is primarily determined by its make, model, age and overall condition. After going through the short approval process and being accepted as a customer, you’ll agree to the placement of a lien against the title of the auto upon accepting the cash.1 With ChoiceCash vehicle-secured loans, you can continue using the pledged vehicle the way you normally would – as long as you’re repaying the loan according to the terms of the loan agreement. However, the lien gives the lender the right to sell the car or truck to recoup any losses they might incur if you default on the loan, which brings us to the topic of GPS tracking devices.
What Are Gps Tracking Devices?
GPS trackers use the Global Positioning System to determine and transmit the real-time location of an individual or an asset. The devices use signals from satellites to calculate their positions, then use cellular or satellite networks to send this information to a mobile app or central server for monitoring.
The two primary types of tracking devices used with auto title loans are hardwired GPS trackers with backup batteries, as well as car battery-powered GPS trackers. Some devices are also equipped with immobilization features for remote vehicle disabling. And yes, some lenders do use GPS tracking devices to disable the vehicles of borrowers who fall behind on their payments.
- Hardwired GPS trackers are installed directly into your vehicle’s electrical system for continuous tracking. They often include a reserve battery to keep the tracker operational if the main power supply is cut.
- Battery-Powered GPS trackers can be placed anywhere in the car, and don’t require wiring. This makes installation fast and discreet.
- GPS trackers with a starter interrupt allow the lender to remotely disable your vehicle’s starter, preventing you from using your vehicle if your payments are overdue.
Title Loans and Gps Tracking Devices
Some vehicle-secured lenders like the technology because it provides real-time monitoring to help locate their collateral. GPS tracking provides precise location data, speeding up repossession if the borrower fails to make payments as agreed.
The Impact of Gps Tracking on Loan Approval Processes
Some lenders are more willing to approve loans to higher-risk borrowers when GPS tracking is used on collateral. After all, the technology increases the likelihood of vehicle recovery if the borrower misses payments. This additional layer of security can encourage lenders to offer borrowers larger loan amounts or better terms. For borrowers, GPS devices can lead to greater loan eligibility, which could help borrowers with challenged credit. It could also result in larger loans or lower interest rates.
The Pros and Cons of Using Gps Trackers in Title Loans
While benefits do exist for borrowers, GPS trackers can also present security and privacy concerns. Unauthorized tracking, data security breaches and potential misuse by lenders or third parties are among the primary concerns.
- Privacy Risks – The use of GPS trackers to monitor your vehicle without constant consent poses privacy concerns. There is also a risk of sale or unauthorized disclosure of your location data to third parties. This could be troublesome if you’re at a sensitive place such as a medical facility. Also, if tracking practices are not properly disclosed or transparent, borrowers may feel their privacy is being invaded and may lose trust in the lender.
- Security Vulnerabilities – Poorly protected GPS devices may permit thieves or hackers to access your location data, potentially leading to robbery or stalking. What’s more, a lack of robust security features leaves these devices vulnerable to data breaches and exposure of personal information such as home or work locations.
- Operational Drawbacks – GPS trackers and starter-interrupt systems occasionally malfunction. This could prevent you from starting your vehicle even if your payments are current. In some cases, they could shut your vehicle down while it is in use. That’s something you don’t want to have happen on a busy freeway.
Your Rights as a Consumer Regarding Gps Tracking
While state laws vary, lenders must get your written consent to use trackers. They must also disclose how your location data will be used, stored and shared to comply with privacy regulations. Using GPS trackers without your consent, or for purposes other than those disclosed, can expose lenders to legal ramifications.
You have the right to require your explicit consent before a GPS tracker is installed and your vehicle’s location is tracked. Non-consensual tracking is a breach of your privacy and can result in lawsuits and regulatory fines against the perpetrators. You can also control how your personal data is used when collected via GPS. For example, you can opt out of data selling or sharing with third parties. You also have the right to limit the use and disclosure of sensitive personal information like your geolocation data. Further, lenders cannot monetize your personal data, beyond providing the agreed-upon service.
What to Do if You Feel Your Rights Are Violated?
If you feel your rights are being violated by lenders using GPS tracking, you should:
- Verify whether your lender has provided clear notice and obtained consent for GPS tracking as required in many jurisdictions.
- File complaints with the Consumer Financial Protection Bureau, Federal Trade Commission and the office of your state’s attorney general.
- Consult a lawyer who specializes in consumer rights or repossession laws to help you take legal action against lenders if required.
- Keep detailed records of all communications with lenders and any notices received, as well as evidence of GPS tracking or repossession attempts.
Does Choicecash Require Gps Trackers?
ChoiceCash does not employ GPS trackers. Our loan agreements are easy to read to ensure borrowers understand exactly what they’re doing. While repossession of your vehicle is possible if you default on your loan, that’s not our preferred outcome, and no GPS devices are used to track or find your vehicle. We want borrowers to continue owning their cars. Managed responsibly, car title borrowing could be the lifeline you need in a financial emergency.1 That’s why ChoiceCash title loans offer excellent customer support and flexible repayment options.
Apply today for a title loan without GPS tracking!1
