For PassTime, compliance has always been an important part of our business. From its early days to today, the company has worked diligently to educate national and local government regulators, consumer advocates, dealers, finance companies and consumers on the functionality and consumer benefits of GPS and Payment Assurance devices.
PassTime, an industry leader in GPS Tracking and Automated Technology Solutions, began marketing the first industry Payment Assurance technology in 1997. At that time, 70-80% of the market was held by two payment assurance device companies, PassTime and On-Time. Within a year, PassTime began working on the industry’s first Payment Assurance consumer disclosures, in late 1998.
As part of this commitment to compliance, and helping its customers stay informed about compliance, PassTime teamed with Hudson Cook, one of the nation’s most highly regarded law practices in the area of consumer financial services law, to create the first available training in payment assurance and GPS device compliance.
PassTime has a full time compliance officer and CFPB Service Provider documentation. While the CFPB has gone through many changes since its inception in 2011, it is clear that the Bureau has an expectation that supervised financial institutions have an effective process for managing the risks of service provider relationships.
PassTime strives to ensure corporate-wide compliance with new and emerging State, Federal Laws and Regulations. IT compliance is also an integral part of PassTime’s implementation of best computing and management practices.
GPS Device Best Practices: The Do's & Don't's
- Do have written policies and procedures for the use of the devices, including (but not limited to) the bullet points listed below.
- Do fully disclose to the customer that the device is on the vehicle as a condition of financing, how the device works, and optional emergency procedures.
- Do give written disclosure to the End User Consumer of a SID/GPS device being installed on the vehicle and used as a condition of the extension of credit under the RISC.
- Do have written disclosures that include language outlining the fact that the device is installed on the vehicle, how it operates and will be used, and both the End User Consumer’s and finance company’s/dealer’s/device owner’s respective obligations related to the device.
- Do have the consumer sign the disclosure.
- Do track complaints and complaint resolution related to the devices.
- Do use trained and/or certified in-house, third-party, or vendor supplied installers.
- Don’t pass the cost of the devices, airtime or installation along to the consumer whose cars are to be equipped with the GPS or Payment Reminder devices associated to the RISC.
- Don’t discriminate in any way who you require to have a device and who you don’t, as this may violate federal or state anti-discrimination laws.
- Don’t disable a consumer’s vehicle without giving prior warning, if possible (prior warning is mandatory in California).
- Don’t leave the vehicle disabled after a debtor makes an appropriate payment. Re-enable the vehicle as soon as possible.
- Don’t use the GPS tracking functionality for any improper purpose.