Is it legal for an auto finance company to require/demand that a car havea GPS tracking device in order to finance it?
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Is it legal for an auto finance company to require/demand that a car havea GPS tracking device in order to finance it?
Asked on March 16, 2011 under General Practice, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
It is absolutely legal:
1) There is nothing inherently illegal about a GPS device or about a third-party company knowing your whereabouts--so they are not asking you to do anything that is itself against the law, such as asking you to pay cash specifically to avoid reporting taxes.
2) Companies don't have to make loans. Instead, they choose to make loans, and may impose any non-illegal or conditions. If a prospective borrower doesn't like those terms, he or she doesn't have to take out the loan.
IF the financing company is discriminating against you on the basis of some protected characteristic, such as race, then this might be problematic; e.g. it can't ask African American customers to have GPS devices but not caucasions. But in the absence of illegal discrimination, they can require this, and your recourse is to look for financing from someone else.
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