| 07 Oct 2007 |
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UAE: Gadget makes cheating onloans a nonstarter
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Device provides ample warning and disables cars until payment is made
An electronic gadget designed to prevent drivers from defaulting on car loans has been launched in the UAE.
The Sekurpay device is fitted to a vehicle and reminds the borrower with a flashing light when a payment is due.
If the cash is not paid, the device disables the ignition system. Cars that are reported stolen can also be immobilised remotely.
Two loan subsidiaries of leading banks and a number of hire companies in the UAE have already adopted the system. And it is being used by banks, rental companies and car dealers across the Middle East.
The device is supplied by Sekurus International, whose research and development centre is in Dubai.
"The rate of auto loan default is high in the region," said its CEO, Basel Al Saleh. "So, many banks and financial institutions are using the system with the approval of the customer.
"Around 10,000 cars are equipped with this device in the Middle East - in the UAE, Saudi Arabia, Egypt and Iran. We have sold one million units all over the world.
"In the absence of a credit bureau in the UAE, banks and car dealers are in the dark about the credit history of customers. With this system they can control the use of a vehicle.The device will never stop a running car but can prevent the engine from being restarted. Rental firms use it to control customers who are late with payments.
"Company fleet operators can use the system to stop staff using cars outside office hours," he said.
The device - which is the size of a cigarette pack - is mounted under the steering column.The bank or car dealer gives the customer a sixdigit code, which he taps in using a keypad on the device.
A green light flashes to indicate that payments are up to date. But when an installment is due it changes to yellow.
If the payment is not made the car will then cease to start.
A new code is provided every time a payment is made, enabling the customer to continue using the car until the next instalment becomes due.
If the device is removed illegally, an anti-tamper circuit disables the ignition.
Al Naser Rent A Car of Dubai is one of the companies using the system.
Manager Abdul Rasheed said: "We have installed the device in 100 cars. Some customers use a vehicle after the expiry of the agreement. If a customer does not return a car we can immobilise it.
By VM Sathish
© Emirates Today 2007
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