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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 […]

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,” […]

Dealer Group CFO Admits to Defrauding Ford Credit of $50M

Nearly a year after Ford Motor Credit sued Reagor-Dykes Auto Group for hiding one of the largest floorplan financing frauds in history, the captive is finally receiving closure. The Texas-based dealership group’s Chief Financial Officer Shane Smith has pleaded guilty to defrauding the captive, shelling out $50 million in restitution to Ford Credit and other […]

Dealer Group Owes Ford Credit $45M

Ford Motor Credit has determined that Bart Reagor, co-owner of Lubbock-based Reagor-Dykes Auto Group, owes $45.3 million to the captive in its $112 million floorplan financing fraud suit against the dealer group, according to an amended proposed judgement filed with the U.S. District Court yesterday. Ford Credit already has recouped $74.7 million, which includes the former […]

14% of Subprime Loans at Franchise Dealers Have Price Inflation

An estimated 5% of franchise dealerships up-charge vehicles sold to subprime consumers more than $1,000 on average above the online advertised price, making it more likely that borrowers will default on their loans, Josh Wortman, an analyst with General Forensics, told AFN. Since 2017, Wortman’s data also shows that 26% of independent dealerships inflate prices […]