Borrower beware! We have written on sub-prime auto loans
before. They are loans backed by securities sold on Wall Street and can carry extremely high interest rates. The sub-prime auto loan is yet another example of Wall Street profiting off the least able to afford their financial traps. The most susceptible borrowers are those with little money, high debt and poor credit. Now the New York Times
is reporting on a new twist. Borrowers who are behind on their car payments may have the car disabled and undrivable.
The automatic disable feature is often a requirement when signing up for a sub-prime loan, so you may not have a way around it.
Do yourself a favor and consult with a financial planner before signing up for a sub-prime loan. Zacchaeus Financial Counseling, Inc. specializes in advising and advocating for individuals and households with lower incomes or in financial crisis. As a 501(c)(3) non-profit organization, we provide services regardless of the ability to pay.