With three kids and a fourth on the way, Leonela Franco's family needed to size up from its 2012 Chevrolet Cruze. After a relative recommended a Reagor Dykes dealership, Franco in late July traded in the Chevy for a 2014 Nissan Pathfinder.
But when the 13-store dealership group declared bankruptcy just days later, the deal hit the skids. As of late September, Franco is missing the title on the Pathfinder — and is stuck making loan payments on both the Nissan and the Chevy, the latter of which is no longer in the family's possession.
Franco and her family are among 100 or more customers in limbo on recent purchases from Reagor Dykes stores in the wake of the group's apparent financial collapse. Customer complaints include missing titles, absent deal paperwork and, as in Franco's case, the failure by the dealership group to pay off loans on trade-in vehicles, leaving buyers on the hook for multiple payments. The Texas Department of Motor Vehicles has been flooded with complaints — 100 and counting.
Meanwhile, creditors have descended from several angles since Reagor Dykes filed for Chapter 11 bankruptcy protection Aug. 1 after a Ford Motor Credit Co. lawsuit accused the group of fraud related to floorplan loans. Ford Credit says the group owes it more than $113 million, including $40 million that's past due. New lawsuits now allege check-kiting schemes involving the dealership group. In short, it's a mess.