fraud | Auto Finance News | Auto Finance News

Texas bank sues Ford Credit for $25M

Ford Motor Credit has been sued for $25 million by the International Bank of Commerce (IBC) for allegedly failing to notify the bank and other investors that funding was terminated for Reagor-Dykes Auto Group (RDAG) dealerships.  Laredo, Texas-based IBC had loaned and refinanced more than $30 million to Reagor-Dykes from August 2017 to February 2018, the […]
  • Nicole Casperson
  • July 16, 2019
  • Risk

Nissan dealership fined $2.8M for loan defaults

A federal judge has allowed Nissan Motor Acceptance Corp. to repossess 90 vehicles valued at $2.8 million from a dealership the captive sued for defaulting on loans and selling vehicles out of trust.  Helena, Mont.-based Robert Allen Nissan received loans from NMAC to purchase new and used vehicles for its inventory. Under the terms of […]
  • Nicole Casperson
  • July 15, 2019
  • Risk

Bart Reagor fights back against Ford Credit

Bart Reagor, former co-owner of Reagor-Dykes Auto Group, is fighting back against Ford Credit Co. in the court of public opinion, which has resulted in a delay of a final judgment, Wayne Dolcefino, founder of Dolcefino Consulting, told Auto Finance News. The case — which has been postponed until Oct. 7 — will move to […]
  • Joey Pizzolato
  • July 12, 2019
  • Risk

Fraud analytics, alt-data reduce risk for nonprime lenders

The ability to identify risk as early as possible in the loan origination process can improve portfolio performance, and lenders focused on nonprime segments have better resources than ever before to reduce loan risk. Early identification of high-risk borrowers can reduce or potentially eliminate defaults. Fraud analytics and alternative credit data — which provides a […]

NYPD cop charged in $1.5M auto loan scam

A cop with the New York Police Department has been charged with fraud and lying to the Federal Bureau of Investigation after participating in a $1.5 million auto loan scam, according to the Southern District of New York Attorney’s office.  Officer Eduardo Rodriguez conspired with two other individuals, Ricardo Taboada and Daniel Duran, to defraud […]
  • Nicole Casperson
  • July 3, 2019
  • Risk

Reagor-Dykes proposes $14M restructuring plan to Ford Credit, GM Financial

Reagor-Dykes Auto Group is looking to avoid a shutdown by proposing a $14 million restructuring plan that would “yield the highest and best return for all creditors,” including Ford Motor Credit and GM Financial, according to documents filed June 29 in bankruptcy court.  The proposal suggests the dealership chain will be recapitalized by “Plan Sponsors,” […]

FBI uncovers 5-year dealer fraud scheme

The Federal Bureau of Investigation has uncovered a fraud scheme perpetrated by a Charleston, S.C.-based dealership, Hoover Mitsubishi, spanning nearly five years, according to an affidavit filed with the U.S. District Court for the District of South Carolina. The affidavit implicates the dealership’s general manager, finance manager, and owner, along with a former general sales […]
  • Joey Pizzolato
  • June 27, 2019
  • Risk

Used-car dealers scam insurers in California

Auto insurance fraud is the latest scheme to hit the West Coast as a ring of used-car dealers allegedly ripped off auto insurers for $22,000 by filing fraudulent insurance claims, according to the California Department of Insurance.  The organized fraud involved owners and associates of Sacramento, Calif.-based Habib Auto Sales, Ocean Auto Sales, and Rusul […]
  • Nicole Casperson
  • June 26, 2019
  • Risk
Page 1 of 41234