TRENTON, N.J. – Governor Chris Christie conditionally vetoed legislation (A756) that would regulate the use of remote shut-off or “Kill-Switch” devices used by auto lenders and dealers to enforce payments. The Assembly has re-passed the measure with the governor’s recommendations. The state Senate must similarly act for the measure to become law.
The legislation targets payment assurance devices that give lenders the ability to locate an automobile and disable its starter after missed payments. Initially proposed as a prohibition, the NJCUL successfully worked with the sponsors on regulatory 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 NJCUL registered its opposition with the Governor’s Office.
In addition to some technical changes, the governor’s conditional veto let stand the fee prohibition but said the interest rate cap should be eliminated.
in Legislative & Political News