I know of a statute that restricts rental car companies from using GPS devices on their cars without adequate disclosure (CA Civ. Code § 1936(6)(o) (2002), but no restriction on car lenders. Check your finance agreement - it may include this, in which case you agreed to it. It may also be a contractual remedy you've agreed that they have in case their repossession rights are triggered because you failed to make the promised payments.
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