TRENTON, N.J. – New Jersey Gov. Chris Christie has conditionally vetoed legislation that would regulate the use of remote shut-off or “kill-switch” devices used by some auto lenders and dealers to enforce payments.
The legislation has been opposed by the New Jersey Credit Union League.
The proposed legislation targets so-called “payment assurance devices” that give lenders the ability to locate an automobile and disable its starter if the borrower has missed any payments. Initially proposed as a prohibition, the New Jersey league said it successfully worked with the sponsors on acceptable standards as an alternative to an out-right ban.
“While the legislation was amended to permit the use of such devices, the league continued to oppose it because of two provisions—the interest rate cap and the prohibition against making the borrower responsible for installation costs,” the league said.
In addition to some technical changes, the league noted the governor’s conditional veto let stand the fee prohibition but said the interest rate cap should be eliminated. The Legislature must now either override or approve the governor’s changes in order for the measure to become law.