Click here: to donate by Credit Card
Or here: to donate by PayPal
Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794
Thank you very much and God bless you.
Posted on 10/13/2025 3:14:09 PM PDT by DFG
A Dallas-based auto lender once praised by the U.S. Treasury for “community development” has filed for bankruptcy amid allegations of fraud and financial misconduct, leaving major U.S. banks facing heavy losses.
Tricolor Holdings, which specialized in selling used cars and providing loans to illegal immigrants, built its business model on customers who could not qualify for traditional financing, according to Revolver News, which first reported the company’s collapse. The company charged high interest rates and above-market vehicle prices, marketing the program as “social lending.” Subsequent reporting by Barron’s and state regulators confirmed that Tricolor had repeatedly been cited for delayed title transfers, improper license plate usage, and inflated vehicle pricing.
As previously reported by The Dallas Express, the auto lender disclosed that 69% of its 2023 customers were “undocumented.” A company representative said, “Due to the current environment, Tricolor shifted its focus from the no FICO borrower to a general market profile.”
In 2019, the U.S. Treasury certified Tricolor as a Community Development Financial Institution (CDFI), granting it a federal endorsement as a “socially responsible” lender. Despite that certification, the company repeatedly drew citations from state regulators for delayed title transfers, improper plate usage, and selling cars without holding titles.
Tricolor’s troubles intensified when Fifth Third Bancorp discovered what it described as “alleged fraud,” according to Barron’s. The bank said it could face up to $200 million in losses tied to a commercial borrower that a person familiar with the matter identified as Tricolor. “When you have a fraud, it’s ultimately a client selection issue,” Fifth Third CEO Timothy Spence said at a September 10 banking conference. “We’re not in the business of doing business with people who commit fraud.”
Co-founder Ken Weaver previously served time in prison for selling stolen cars, according to local news reports. Weaver did not disclose that record while seeking to operate a Texas utility that later drew numerous customer complaints. Tricolor CEO Daniel Chu stated in 2022 that he removed Weaver from the company after learning about his background.
Chu’s own history includes allegations of financial misconduct and self-dealing. He resigned from another used-car company after accounting irregularities surfaced and was later sued by partners in a tech venture over a disputed transaction. Chu denied wrongdoing and said issues with regulators stemmed from vendor mistakes.
The company’s liquidation has prompted scrutiny of federal initiatives that label risky lending programs as ‘equity’ or ‘community’ efforts.
|
|
Click here: to donate by Credit Card Or here: to donate by PayPal Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794 Thank you very much and God bless you. |
Why? Everybody does it. Am I right, CNN? Up high!
“community development”
One of the hundreds of Leftist cliches which actually mean “government-sponsored fraud.”
the costs of diversity and open borders to american society are incalculable. This is just one more small example.
How many of these illegals self-deported, taking their vehicles with them back to Mexico?
How many dropped off the grid and went underground, leaving no forwarding address?
Either way the loan payments don't get made. Sorry, but I'm not sorry...
Basicallly Democrats playing the "inclusion game" with other people's money. One running it boasts "Collin County Community College, Bachelor of Arts (BA), January 2014" and no real finance education. Learned on the fly, staring out as a "Repo Specialist at Capital One Auto Finance in January 2007."
"Tricolor Auto Group (“Tricolor”) is a mission-driven company that utilizes advanced data analytics and technology to advance financial inclusion to a highly underserved Hispanic market and offer responsible, affordable, credit-building loans to individuals with no or limited credit history. It sells and finances high quality, certified used vehicles through its brands, Tricolor in Texas, Ganas in California and Ganas Ya. We are a family brand laser-focused on putting Trust (one of our core values) back into this industry. Tricolor has been featured in Inc. Magazine for 4 consecutive years as one of the fastest growing companies in America. In addition, in 2018 was named Best Entrepreneurial Companies in America by Entrepreneur Magazine’s 2018 Entrepreneur 360 List. Tricolor is always looking to continued to attract and recruit top talent to help us continue on this journey. We continue to innovate on a daily basis with the objective of being most innovative company within our segment. Come join us in this journey! Headquartered in Dallas, Tricolor, together with its affiliates, Ganas and Ganas Ya, under the Ganas Holdings umbrella operate forty retail dealerships across twelve markets in Texas and California, as well as an operational center in Guadalajara, Mexico. Tricolor and Ganas have served 50,000 customers and disbursed nearly $1B in affordable auto loans by using its proprietary model to segment risk. Tricolor truly understands the importance of delivering the best possible customer experience which is one of the core guiding principles that has helped Tricolor stay at the top of its industry."
Company PR 6021 Connection Dr, 4th floor, Irving, Texas 75039, US
Yep. And many of the illegals Tricolor gave auto loans to are simply self-deporting south of the border . . . and taking their unpaid-for cars with them.
Well, it's an interesting business model. Steal 'em and deal 'em.
How many of those cars had GPS tracking and cutoff systems if the payment isn’t made? Might be interesting for ICE to subpoena and seize all those records.
“How many of those cars had GPS tracking and cutoff systems if the payment isn’t made?”
They may not have bothered. Probably the setup was like most “buy here, pay here” dealers. Your downpayment is what they’ve got in the car. You make one payment, they’re in the green.
Lots of painter vans for sale in the atlanta metro area this year. I own a painting business and I noticed the absence of the nondescript white vans.
This one worked the other way, according to some reports. Sell a car, take back the note. Pledge the loan to bank A to secure a commercial line of credit. Pledge the loan to bank B to secure another line of credit. Continue. Eventually, the house of cards collapses.
At least the big banks can afford to take the hit. I do wonder if this surfaced during due diligence on the the Fifth Third merger with Comerica.
Translation: the USAID spigot of endless free dollars was shutoff.
AIDING & ABETTING ILLEGALS, ALSO
HOW ABOUT:
NO DRIVER’S LICENSES
NO INSURANCE
I didn’t think to check that, but I will. One of my carpenters just got a framing nailer at the pawn shop. I’ll have to ask him what he paid for it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.