Tricolor Auto Group, a Texas-based car dealership that served buyers with little or no credit, has filed for Chapter 7 bankruptcy. The company operated more than 60 dealerships in six states and has over a billion dollars in liabilities with more than 25,000 creditors. Customers have reported locked car lots and stopped communications. Christopher Pickens, who recently traded in his car, told ABC13, "The vehicle we traded in -- when is that going to be paid for, because that's damaging my credit," and said, "I'm very angry."
Despite Tricolor Auto Group’s bankruptcy, experts are advising customers to continue making their loan payments. Automotive expert Brian Moody said, "No matter what anybody says -- you should keep paying the loan, and here's why. If you got a car from one of these dealerships -- Tricolor being one of them -- your loan is not with a dealership. Most likely, it's with a financial institutionn," according to ABC13.
Tricolor Auto Group customers are facing issues as the company files for bankruptcy. Sheriva Shed said, "Nobody would answer, or they'd say they'd call me back," and "So I got an Uber and went up there, and there were herds of people outside. That's when I was like, what's going to happen to our cars?" Some vehicles have been repossessed, and customers are dealing with potential credit problems, as mentioned by KHOU. The Texas Department of Motor Vehicles is investigating complaints, and affected customers are advised to file grievances with the TxDMV and the Office of Consumer Credit Commissioner. Those who lost vehicles or prepaid for services may file claims with the bankruptcy court. The U.S. Justice Department is also investigating the company for alleged fraud, and Tricolor’s loan portfolio could be sold to other finance companies.
