A Georgia-based bank filed a lawsuit against Reagor-Dykes of Snyder, LP, this week claiming a trade-in check was returned due to insufficient funds.
Lubbock attorney Phil A. Johnson filed the lawsuit Wednesday in the 132nd Judicial District Clerk’s office on behalf of Fidelity Bank, which is based in Atlanta, Ga.
The bank, according to the lawsuit, is seeking “the right to foreclose on its security interest in collateral valued at less than $100,000” and “monetary damages for any resulting deficiency and attorney fees in a combined amount of less than $100,000.”
Johnson wrote in the lawsuit that a Reagor-Dykes customer, on July 18, purchased a vehicle from the dealership and traded in a 2017 GM Acadia financed through Fidelity. The customer still owed on the vehicle.
Reagor-Dykes sent a $34,128 check to Fidelity to pay off the vehicle. However, after the check was deposited, the lawsuit stated it was denied and returned with “refer to maker” stamped on it.
Fidelity has attempted to take possession of the vehicle because it was the collateral in questions. The lawsuit stated that those demands were unsuccessful.
“There is immediate danger that Defendant will conceal, dispose, or remove property during the pendency of this suit because Defendant has failed to surrender the collateral and the property is mobile and is easily transported,” the lawsuit stated.
Johnson’s lawsuit stated that to his knowledge, the local dealership is not part of the Reagor-Dykes Auto Group bankruptcy proceedings.
Since the company filed for bankruptcy two months ago, nearly 900 Reagor-Dykes customers continue to wait for titles, licenses and trade-in payoffs, media reports state.
Also reported this week was that a building owned by the Reagor-Dykes Auto Group is on the Lubbock County foreclosure list and may be up for auction on Nov. 6. The RD Innovations building has been filed as a property 0n the county’s foreclosure list with the current price of $328,000, according to foreclosure documents, a Lubbock TV station reported.
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