Dealer Reclaims Vehicle, Customer Reacts by Legally Acquiring Its Name

      Kia

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      A dispute has arisen between a Kia dealership and a (former) customer, beginning with a questionable repossession and escalating into a rather unusual situation. The customer managed to register the dealership's business name for herself and subsequently issued a cease and desist to the store.

      I came across this story in Automotive News and delved deeper using information from Court News Ohio and the official court documents related to the case. I also reached out to the attorneys on both sides involved in the disagreement, but I have not received a response. If they provide more insight, we may revisit this peculiar saga later.

      According to reports, Tiah McCreary purchased a 2022 Kia K5 from Taylor Kia of Lima, Ohio, last February. She received a notification from Global Lending Services, which had "provided preliminary approval to McCreary," but later determined that the "available information regarding McCreary’s income was not adequate to substantiate a loan for the requested amount," as noted in court documents. The dealership repossessed the car on March 29, 2024.

      I won’t speculate on what precisely transpired here, but it certainly reflects poorly on both the dealer and the lender. They are likely displeased as well, considering they prefer cars to return only for service appointments.

      The next developments are where the story takes a twist. While exploring her legal options, McCreary allegedly found that the name "Taylor Kia of Lima," which the dealership operates under, was available. It appears that the Taylor Automotive Group, the parent company of the Lima Kia dealership and other dealerships, including Hyundai and Cadillac, failed to submit a renewal application to the state. As a result, the Ohio Secretary of State canceled the registration of the name “Taylor Kia of Lima.”

      McCreary then registered “Taylor Kia of Lima” in her name and issued a cease and desist letter to the company, asserting that the name now belongs to her.

      In June, McCreary filed a complaint against the dealership’s parent company and the lender in Allen County Common Pleas Court, claiming fraud. She also sought an injunction to prevent the dealer from conducting business under the name Taylor Kia of Lima without her permission.

      Initially, the court dismissed the case, opting for arbitration due to an agreement included in the financing documents McCreary signed. It’s common for such clauses to be found in sales documents, as settling a dispute privately is often more cost-effective and quicker than going through the court system (this is essentially what “arbitration” means in this context).

      However, McCreary appealed, and the appeals court referred the matter back up the chain due to the business name issue. "Since this claim [the use of the name 'Taylor Kia of Lima'] does not fall within the scope of the arbitration agreement, this claim should not have been dismissed and sent to arbitration," stated the Third District court.

      So, that’s the current status—the dealer has McCreary’s car, McCreary possesses the dealer’s name, and Ohio courts have yet to decide the outcome. It will be intriguing to see how this unfolds; there doesn’t seem to be a precedent for a case like this where a customer seeks restitution for a repossession.

      Are you aware of any other unusual cases involving customers and dealers? I would love to hear about them! Feel free to reach out to me at [email protected].