NIADA sent comments to the Montana Senate Energy, Technology and Federal Relations Committee Feb. 27 in opposition to the proposed Senate Bill 364, which would limit the use of starter interrupt devices.
The bill filed by Kenneth Bogner (R-hometown) would require a warrant to activate the starter interrupt device on a vehicle.
NIADA argued the bill would harm consumers and dealers in the state if approved in its current form.
“A number of used car dealers serve customers with limited access to credit. These dealers originate the loan for used vehicles and also are the lienholder after the sale. With the consumers’ written consent, the lienholder legally places a starter interrupt device (referred to as a “kill switch” in SB 364) on the collateral. This allows lenders to protect their interest and give access to credit that many subprime customers would otherwise not have,” NIADA said in its letter to the committee.
“In the event a consumer defaults and a start interrupt device is activated, it allows the lienholder and the consumer an opportunity to work out a quick and financially feasible solution. Requiring a court order to activate a device will prolong the process and cost lienholders and consumers more money. In the event a lienholder has to repossess a vehicle due to nonpayment, the starter interrupt device creates a safer environment and reduces risk to the public.”
NIADA has had conversations with Bogner about amendments to the bill to protect dealers that could be introduced as the bill moved to the House of Representatives.
The committee voted 13-0 in favor of the bill.
