Chicago car dealer, lender deactivated cars with 'kill switch' after borrowers missed payments: lawsuit

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A Chicago used car dealer and loan company used “kill switches” to disable cars when their drivers were late on payments, according to a lawsuit filed this week by a legal advocacy clinic.

when their drivers were late on payments, according to a lawsuit filed this week by a legal advocacy clinic.

The cars have remained parked in front of the owners’ respective homes for more than two years while Overland continues to pursue thousands of dollars through collections lawsuits, said Dan Schneider, an attorney for Legal Action Chicago, a nonprofit representing Calhoun and Orozco. Overland filed collections lawsuits against Orozco and Calhoun in 2021, court records show.

Under state law, lenders have the option of suing borrowers for the unpaid amount or repossessing the vehicle, selling it in a timely fashion and seeking the balance owed on the loan, Schneider said. The lawsuit notes that both Orozco and Calhoun were made aware a kill switch had been installed when they bought the cars but did not know Overland would use it to permanently stall the vehicles.

 

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