The percentage of auto loans that were at least 90 days delinquent increased to 3.8 percent in the fourth<br />quarter from 3.6 percent in the third quarter, according to the Federal Reserve Bank of New York<br />In determining whether to take action, the Federal Trade Commission must first decide whether the benefit<br />to consumers — in this case the availability of auto loans — outweighs the privacy problems.<br />Some find it unsettling that the technology gives lenders so much control over borrowers — particularly poor borrowers, who typically have no choice<br />but to accept the device if they want a loan to buy a car.<br />Auto loans to Americans with poor credit have been booming,<br />and many finance companies, credit unions and auto dealers are using technologies to track the location of borrowers’ vehicles in case they need to repossess them.<br />“Location data is very sensitive.”<br />If the federal agency determines that the devices are being used unfairly or deceptively, it could force companies to stop the behavior<br />and devise procedures and monitoring to ensure that customer privacy is better protected.<br />But privacy experts and many borrowers who have the devices in their cars say there is great potential for abuse, particularly<br />because the devices fall outside traditional state and federal lending laws.
