The Effects of Recent GPS Legislation on Your Business | GPS LEADERS
The Effects of Recent GPS Legislation on Your Business
To our distributors and users of our BHPH GPS tracking devices, we want to make you aware of some recent legislation that came into effect in the states of Nevada and New Jersey. Nevada Senate Bill 350 and New Jersey Assembly Bill 756 went into effect as of July 1, 2017. Here are some highlights of these recent laws.
How we have responded:
Our Nevada data collection policy has been updated to ensure data is purged no later than 180 days after being collected.
What you should know:
Applies to creditors and long-term lessors of consumer contracts (not business purpose)
GPS tracking use requires either
Optional use of GPS: Consumer’s agreement to installation of GPS and/or starter interrupt technology (separate from lease/contract); or
Mandatory use of GPS: Consumer’s written acknowledgement of receipt of written notification which can be retained by consumer, separate from contract or lease, prior to lease/contract signature
Notification must state that GPS is used to:
Verify and maintain operational status of GPS
Service the contract/lease
Locate the vehicle for repossession
Consumer cannot be charged for installation or use of device while under contract/lease
Installation must be done by a certified installer
Starter Interrupt Disable (SID) use requires
Written agreement, separate from and prior to signing lease/contract
Consumer’s written acknowledgement of receipt of copy of agreement which can be retained by consumer
Agreement must include:
Vehicle is equipped with the SID
Can be remotely disabled if consumer defaults on contract/lease
Use of SID will occur no sooner than 30 days after due date of missed payment
Use of SID constitutes constructive repossession
SID will not be used to –
Disable vehicle while in operation
Turn off engine while running
Cause an audible warning lasting longer than 20 continuous seconds at engine start or stop
Consumer must have 48 hours’ actual notice before SID is activated
If SID is engaged, consumer must be provided ability to start and operate the vehicle not less than 2 times during a payment cycle, and for not less than 24 hours after each time the vehicle is started
Consumer must be provided with name, address and toll-free number of person authorized to activate, deactivate and reinstate SID.
How we have responded:
Our devices and services are currently equipped to handle these NJ legal requirements.
What you should know:
Prior to or in conjunction with purchase/lease, consumer must acknowledge, in writing, receipt of written notification of presence of payment assurance device
Consumer cannot be billed or charged a fee for device installation
Notice must be at least 10-point boldface type
Notice must disclose to consumer:
Presence of device AND how device can be used to remotely disable vehicle
Grace period prior to initiating remote disable
5+ calendar days past due date on weekly payment plan
10+ calendar days past due date for any other financed terms
Warning notice must be sent via minimum of 2 forms of communication at least 72 hours prior to initiating remote disable
Name, address and telephone number of creditor
Consumer has ability to start remotely disabled vehicle and use for at least 48 hrs.
States with laws already in effect –
California –
Requires written notification at time of sale
Informing consumer
Vehicle is equipped with SID technology and vehicle can be shut down
Warning of no less than 48 hours prior to engaging SID
Warning method – consumer’s choice
If SID is engaged, consumer has ability to start vehicle for no less than 24 hours after initial disable in case of emergency
Connecticut –
Requires
Written agreement of SID use
15 days’ notice prior to engaging SID
Prohibits engaging SID knowledge of harm may result
Party who engages SID is liable to any person sustaining injury or property damage resulting from SID activation
GPS only to be used after default, not for monitoring
Kansas, Maine, Missouri, Iowa, Maryland & Michigan –
All have current restrictions and/or compliance requirements for use
Oregon SB 483 – Effective January 1, 2018
What you should know:
Installing a GPS device on a motor vehicle without the consent of the vehicle owner is considered a crime.
Legislation Pending –
New York SO 2780/AO 3116
What you should know:
Prohibits dealers/lenders from install starter interrupt devices on purchaser’s or lessee’s motor vehicle.
New York AB 7855
What you should know:
Prohibits creditors from remotely disabling a vehicle without giving written notice to consumer (notice to be sent registered or certified and postmarked no later than 10 days prior to date of disablement)
We appreciate your confidence in us as your chosen provider of GPS devices and will continue to work toward providing compliant products and services that can support these changing consumer laws. The information provided is not meant to be legal advice, just helpful information. We encourage you to consult your legal team with any questions that may arise that would directly effect your business operations.
