Invest in Debt
As I have had some thorough dealings with starter interrupts (also known as ignition interlocks) and their application, it seemed appropriate to provide some more background about the various uses and implications of their use. I have designed and supported products used in both sub-prime lending and DWI enforcement situations.
I
enjoy seeing technology used to enhance safety and to facilitate
business relationships, but I also know these technologies are
often difficult to apply well. Too many times technology is used
as a
tool to force compliance, which is a slippery slope with many
problems. These (potential) problems are human in nature. Technology
is unable to cope with valid situations, and also tends to be terribly
specific in its application, leading to easy circumvention given
proper motivation.
As an example, payment reminder systems (as used in sub-prime lending
and 'Buy Here Pay Here' car sales) are seen as a way to make the
purchaser pay in a timely fashion. This does happen -- the threat
of
not being able to use the car does make the car payment a higher
priority for the purchaser. But the real mechanism behind this
change
is often not the customer, but rather the collector. Payments cannot
be made later because 'the computer' will shut off the car. The
collector is incapable of extending deadlines, leading to better
account currency numbers. This is a fact that is largely unarguable.
If the collector can't provide a way to extend deadlines, they aren't
extended.
The primary markets currently served by starter interrupts are
sub-prime lending, DWI enforcement and theft deterrents (i.e. car
alarms). These all use some form of starter interrupt. The
key can
start the car based on current payment, a clean breath analysis, or
with proper key fob identification, respectively. Some systems
are
starting to blur the lines between theft deterrents and payment
reminders. Boats and recreational vehicles are starting to have
payment reminder systems installed. I have not seen them used in
rental cars, but that seems like a natural market at some point. In
particular, a partnership between national rental franchises could
address some of the more challenging problems which I will discuss
later.