Recently, Pay-As-You-Go (PAYGo) products have gained widespread adoption around the globe. PAYGo enables individuals with limited funds to acquire appliances for personal use on loan and repay the loan in small increments. These products often incorporate Remote Lockout Technology (RLT), a kill-switch to be used in case the customer defaults on their payments. RLT mitigates—at least potentially—default risks, thereby increasing lender confidence and expanding financial access. Increasingly, sustainable infrastructure, especially solar panels, are marketed as PAYGo products, providing access for smallholders and off-grid communities. In these cases, however, using RLT can have dire consequences for the individual. This chapter analyzes this dilemma. We explore potential legal constraints on the use of RLT in sustainable PAYGo products and discuss options for a regulatory response.

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When the Lights Go out: Remote Lockout Technology in Sustainable Pay-As-You-Go Products

  • Sebastian Omlor,
  • Benedikt Bartylla

摘要

Recently, Pay-As-You-Go (PAYGo) products have gained widespread adoption around the globe. PAYGo enables individuals with limited funds to acquire appliances for personal use on loan and repay the loan in small increments. These products often incorporate Remote Lockout Technology (RLT), a kill-switch to be used in case the customer defaults on their payments. RLT mitigates—at least potentially—default risks, thereby increasing lender confidence and expanding financial access. Increasingly, sustainable infrastructure, especially solar panels, are marketed as PAYGo products, providing access for smallholders and off-grid communities. In these cases, however, using RLT can have dire consequences for the individual. This chapter analyzes this dilemma. We explore potential legal constraints on the use of RLT in sustainable PAYGo products and discuss options for a regulatory response.