Seen At 11: New Device Disables Vehicles With Missed Payments

NEW YORK (CBSNewYork) -- Miss a payment on your new car and now it won't start?

There's nothing actually wrong with the car -- it's just the latest way for dealers to make sure drivers aren't delinquent.

As CBS2's Dick Brennan reports, the repo man may soon be out of a job -- and replaced by a little device called a "starter interrupter."

"It seems this is like the new repo man," said AAA spokesman Robert Sinclair.

With a simple push of a button, this new "automated collection technology" as it's called, allows lenders to electronically, and remotely, disable the cars of customers who miss payments.

"I think that's fair," Katrina Long said.

David Houseman disagrees.

"If you can't start your car, how are you supposed to get to work and make those payments?" Houseman asked.

CBS2 spoke to drivers who have mixed feelings on the practice, but experts say like it or not, it's the latest way a growing number of dealers are handling delinquencies.

"They are taking these types of extreme measures to try and protect themselves," Sinclair said.

Consumer attorney Brian Bromberg said the devices seem more like a form of punishment.

"I see this as a way of really, really hurting the people who can least afford to be hurt," Bromberg said. "People miss payments, people accidentally bounce checks -- people have legitimate reasons for missing debts and shouldn't be publicly humiliated."

Or, potentially put in danger, Bromberg added.

"People can be stranded, people can be put in physical danger -- in a bad neighborhood, you could be on the side of the road, be with your children," Bromberg said.

But manufacturers say the devices never shut the car off while it's running and drivers are given plenty of notice before a car is actually disabled.

When you hear a warning signal you're near or past the specified time to make your agreed payments.

Device manufacturers also say their products can actually help more people to qualify for loans.

"This device, can help you keep track of upcoming payments so that you can improve your credit history," an announcer says on a video about the device.

Dealers must tell customers the device is on the car and also explain how it works. Customers can also opt out or choose a dealer who doesn't install them.