dr. dre. that s music. that s what i need in the morning. now we figured it out. the ultimate symbol of freedom, the car. nothing like hopping in and going for a ride. there s a new system to stop people from driving off with your car. lenders are using the device shutting off the engine if you are late on your car payments. gio benitez with more. reporter: forget the repo man driving off with cars on the big screen. now new technology is taking his place. small devices like these are being installed in more than a million cars across the country. allowing lenders and dealerships to remotely disable your car when you re late an a payment. dealership owner bubba hill in panama city, florida, uses passtime usa, one of the many devices flooding the market. he says it s good for the seller and buyer. some call it mom because it s forced them to do what they needed to do in the first place and mack their payment. make their payment.
reporter: hill shows us how it works. lenders and dealerships can monitor customer payments. when they are late, a warning is sent. they have 24 hours left of driving this car before it will not run. reporter: after a certain period of time, the car will be shut off. this is a truck we ve earlier disabled. and so now the consumer can come in the car and they ll try to start the truck and it won t start. reporter: candice smith says her lender allegedly shut down her car while she was driving down the highway. i didn t want to die. everything just became slow motion. reporter: cag acceptance says they dispute the allegations and passtime usa, the maker of the car, claims it s not even possible to shut down a moving car. it s a starter interrupt system and only disables the vehicle when the car is in the off position and not moving. cag acceptance did not admit wrongdoing and reached a confidential settlement with candice but her attorneys have filed a class action laws
that lenders and dealers can disable cars too quickly within just two days of it being passed due. even though nevada state laws say it takes 30 days to go into default. these devices need to comply with state law. we feel they are dangerous devices. they don t take into consideration where you are when they turn off your vehicle. reporter: passtime s ceo says if customers aren t happy with his product, there s ab easy way to steer clear. they can go to another dealership and buy a vehicle without our device. gio benitez, abc news, new york. cag says it s reviewing that class action lawsuit. abc news was told that even if the cars are disabled, the device has an emergency feature when you enter a specific code that will let you drive for another 24 hours before it shuts off again. coming up, the view from the top. the billionaire founder of go-pro and get a pretty good view with one of his world