GPS Tracking for Credit Unions
30 Sep 2025Credit unions, especially those offering auto loans for purchasing pre-owned vehicles, are increasingly adopting GPS trackers to mitigate their risks while improving their operational efficiency.
Key features:
- Real-time asset monitoring: The GPS devices offer real-time monitoring of the vehicle’s location, mitigating the risks of the vehicle being stolen.
- Geo-fencing: They can set virtual boundaries, alerting the authorities when the vehicle enters or exits the designated area.
- Automated payment reminders: GPS trackers can offer alerts reminding borrowers of upcoming loan payments.
- Starter interrupt/disable: Some GPS models offer a “kill-switch” that allows the credit unions to disable the vehicle remotely when the borrower misses loan payments.
- Vehicle diagnostics: GPS trackers can offer valuable data on engine performance, allowing the proactive scheduling of preventive maintenance for the vehicles.
Benefits of GPS Tracking for Credit Unions
- Lower loan defaults and improved portfolio performance: GPS trackers offer a significant reduction in loan defaults, resulting in improved portfolio performance for the credit unions.
- Prevent vehicle theft: GPS trackers offer real-life location of the financed vehicles, preventing their theft and misuse.
- Improved asset recovery: GPS trackers allow credit unions to recover assets without wasting time and money.
- Reduce delinquency rates: With GPS trackers, credit unions can identify the borrower’s financial instability and intervene before the loan goes into default.
- Streamline operations: GPS trackers offer real-time data on the vehicles, allowing the effective loan monitoring by the credit unions.
- Risk mitigation, especially for subprime loans: GPS trackers allow better monitoring of the collateral, allowing the credit unions to offer auto loans to people with poor credit.
- Enhance customer satisfaction: Credit unions gain useful insights on vehicle usage that allow them to introduce ancillary products like auto insurance and service contracts, enhancing customer satisfaction.
Ethical and Legal Considerations:
- Full disclosure: Credit unions must offer a full disclosure of their intention to use GPS trackers in the loan agreement. They must clearly state the purpose of using the GPS tracker and when and why the trackers will be activated.
- Adherence with the relevant laws: The credit unions must comply with consumer protection laws and regulations regarding fair lending practices and data privacy laws.
- Obtain borrowers’ consent: Credit unions must obtain informed consent from the borrowers before installing a GPS tracker on their purchased vehicles.
- Ensure data privacy: The data collected through the GPS tracker must be strictly used for loan securing and vehicle recovery purposes. It must be protected from unauthorized access.
To learn more about GPS tracking for credit unions, call us here at LiveViewGPS at 1-888-544-0494
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