On Friday, an unidentified bank took control of Tricolor Auto Group (TAG), a massive used car retailing chain, according to a new report.
Per an internal HR document obtained by Univision Dallas, 80-90% of TAG's workforce is now on temporary leave, and operations across Texas, Arizona, and California have been suspended.
The details: At the end of the workday on Friday, employees were told they'd be temporarily dismissed, not fired, and will learn by October 6 who might return to work.
Corporate email access was terminated, salaries were frozen, and company activities were stopped for the time being.
Employees will retain their medical insurance coverage while Tricolor conducts an unspecified, internal procedure.
Why it matters: With more than $5 billion in auto loans issued since 2007 and about 65 retail centers, TAG's shutdown has left thousands of active borrowers uncertain about their loan servicing.
Who's affected: TAG, which also operates Ganas Auto and Ganas Ya, specifically targets members of the Hispanic community with little-to-no credit history, including "credit invisible" customers and potentially undocumented individuals.
For context: TAG lends heavily to individuals who use Individual Taxpayer Identification Numbers (ITINs) for tax filing.
ITINs are tax processing numbers issued by the IRS to individuals ineligible for Social Security numbers.
This includes undocumented immigrants, legal residents, and others excluded from traditional financial systems.
The elephant in the room: Immigration enforcement has intensified dramatically since President Trump's return to the White House for his second term.
The administration announced in late January that mass deportations had begun as part of targeted operations to remove undocumented immigrants.
A recent Los Angeles Times analysis of U.S. Immigration and Customs Enforcement (ICE) data reported in August 2025, found that Texas leads the nation in ICE arrests, with nearly 25% of all apprehensions.
Of note: At this time, it's uncertain whether TAG's business disruption has been directly caused by immigration policies, but they are likely having some degree of impact on the company's core customer base.
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Between the lines: TAG's subprime lending practices carry inherent vulnerabilities that may have contributed to this.
As is the case with many subprime lenders, customer loans often have elevated interest rates and high loan-to-value ratios.
These practices can increase revenue for the lender, but strain borrowers, especially ITIN users with limited income.
And when more borrowers struggle to maintain their payments, delinquencies, defaults, and repossessions rise.
Case in point: Automotive Credit Corporation, another regional lender targeting high-risk, subprime borrowers, indefinitely paused new loan originations on August 7, citing "financial conditions."
What's next: For customers with active loans or vehicles in service, the immediate step is contacting their local branch directly to determine account status and next steps. Whether TAG can resume operations likely depends on whatever internal procedure is underway.
We contacted Tricolor Auto Group's press team for clarity on customer service continuity and loan transfer procedures but received no response as of publication.
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