FORT MILL, S.C. — A finance company, Strategic Dealer Services, is suing McCoy Motors, doing business as Ride Fast, for fraud and breach of contract for $1.8 million. McCoy Motors is located in Fort Mill, while Ride Fast is in Lancaster, South Carolina.
Some dealers work by having customers pay the dealer. Then, the dealer pays a finance company.
Apparently, this is how the dealership structured its payment plans, but officials with Strategic Dealer Services said the dealer submitted "false documentation" and failed to "timely pay" the finance company.
Experts said in some cases like this, the finance companies repossess customers' vehicles, even though they made their payments.
John Brown, the head of the Carolinas Independent Automobile Dealers Association, said in extreme cases, "The finance company would say the customer defaulted on the loan and could repo the car even when the customer all along thought they were paying for the car."
Brown also pointed out that, if a finance company reports customers to the credit reporting agencies for not making payments, it could hurt their credit scores.
Action 9 asked Strategic Dealer Services if customers have to worry.
"We appreciate your advocacy for our customers and want nothing but the best for these consumers. We, along with our customers, currently are navigating through very challenging circumstances concerning McCoy Motors. Our policy to date is to defer to consumer benefit. We hope to have this matter resolved in the very near future, and are working with our counsel to see that our customers are protected," an official with the company replied.
Peggy Orrey bought an SUV from McCoy Motors a few months ago.
"I never expected that it was going to be like this," Orrey said. "So angry. So angry."
Orrey says Strategic Dealer Services called her and set up a new payment plan with her so she can pay that company directly and keep her SUV.
Officials with the dealership told Action 9 they had no comment.
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