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Dealer Unjustly Disables 7,500 Cars Remotely in the United States, Leaving Customers with No Option. Understand the Case of the 7,500 Cars Disabled via GPS!
Dealer Disables 7,500 Cars via GPS: A dealership in the United States remotely disabled 7,500 cars via GPS, even when payments were up to date. The case involves U.S. Auto Sales, a company that operated 39 stores in the southeastern part of the country and sold vehicles to customers with bad credit. As part of its business model, the dealership installed GPS trackers and remote disabling devices in the cars. However, thousands of vehicles were improperly disabled, affecting drivers who were current on their accounts.
Company System Sent Over 70,000 False Shutdown Alerts
The company’s stated goal was to ensure customers made their payments correctly; however, federal investigations showed that the company abused this power, leaving drivers stranded on roads, in parking lots, and even unable to get to work or pick up their children from school.
According to a lawsuit filed by the U.S. Consumer Financial Protection Bureau, the dealership improperly disabled 7,500 cars remotely. These 7,500 cars disabled via GPS were up to date on payments, within the grace period, or had even arranged a settlement.
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The company’s system sent approximately 71,000 false shutdown alerts. According to customers, their cars would not start without any warning, often when they were leaving work or trying to visit a relative in the hospital.
If the problem occurred at night, for instance, when customer service was closed, drivers simply had no options. The dealership disables 7,500 cars remotely, with records of customers stranded in supermarkets, parking lots, and even sleeping in their cars because they couldn’t get home.
7,500 Cars Disabled via GPS Unjustly Lead to Million-Dollar Fine
USASF Servicing, the dealership’s financing company, was ordered by the court to pay a fine of $42.6 million for these and other abusive practices, such as excessive interest and fee charges, double-charging for insurance, and illegal withholding of refunds.
However, the decision came a bit late, as the company had already closed its doors and declared bankruptcy, making it unlikely that customers who were harmed by the 7,500 cars disabled via GPS would receive any significant refunds.
The dealership unjustly disables 7,500 cars remotely and, moreover, former employees revealed that the company ignored complaints and, in some cases, even exploited the confusion to extort more from customers.
Those who threatened to take the issue to the press or regulatory agencies could receive a credit on their account or even a gift card to “calm down.” However, those who did not complain simply received no response and lost money.
Impact of Bankruptcy on Consumers
The impact of the dealership also brought new problems for customers. When the dealership closed, a new company called Westlake Portfolio Management took over the collection of debts, but many consumers discovered that their previous payments were not recorded.
Some drivers had their balances adjusted as if they had never paid anything, while others continued to send money to the old dealership without realizing it had already gone bankrupt.
Amid this confusion, many customers had their cars repossessed by financing companies, as happened to Ingrid Jackson, who bought a Nissan Altima from U.S. Auto in 2021. Even though all payments were up to date, she was surprised one night by a vehicle repossession agent who simply took her car.
Investigations against the company are ongoing; however, experts say that cases like these are difficult to prosecute, as companies often disappear before justice can take action.
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