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Loan car shutoff wins court approval - Brief Article
A Michigan judge ruled in favor of megadealer Mel Farr in connection with his installing engine shutoff devices on vehicles sold to customers of his Triple MMM Financing subsidiary.
Wayne County Circuit Judge Kaye Tertzag denied an injunction request by attorneys suing over the OnTime Device, with which missed loan payments can result in electronically disabling the borrower's vehicle.
The device, primarily used with subprime loans, poses no immediate danger to the vehicles' drivers or other motorists, Judge Tertzag decided.
Mr. Farr, a former Detroit Lions running back and owner of 12 franchises in southeastern Michigan and Ohio, testified that the electronic device enables MMM Financing to furnish loans to drivers with bad credit without jeopardizing his profit potential.
The judge deferred ruling on the plaintiff's request that the suit obtain class-action status to include owners of all vehicles equipped with the device.
Manufactured by Payment Protection Systems, a California company, the device consists of a keypad and a tiny light.
Customers who visit a payment center once a week receive a six-digit code upon payment. Punching the code on a keypad in the vehicle allows the car to be started.
If more than seven days pass without a new code, the system automatically turns to a no-start mode.
Judge Tertzag was told by two plaintiffs that their cars conked out while in traffic, but Farr attorney Kenneth Lewis said no accidents or injuries had resulted. They say the device does not disable an engine that's already running.
Nearly 1,000 vehicles have been equipped with OnTime Devices, according to Farr spokeswoman Charlene Mitchell.
The device costs $250 for first-time installation on vehicles sold to new MMM borrowers. Reactivation after each disablement costs $300.